Operator: Welcome to TPG RE Finance Trust, Inc. third quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Please note that this call is being recorded. I will now turn the conference over to Ashvin Rao. Thank you. You may begin.
Ashvin Rao: Good morning, and welcome to the TPG RE Finance Trust, Inc. earnings call for the third quarter of 2026. Today, I am joined by Doug Bouquard, our Chief Executive Officer, Brandon Fox, our Interim Chief Financial Officer, and Ryan Roberto, our Head of Portfolio Management and Capital Markets. Doug, Brandon, and Ryan will provide commentary regarding the company, its performance, and the general economy, and will answer questions from call participants. Yesterday afternoon, we filed our Form 10-Q, issued a press release, and shared an earnings supplemental, all of which are available on the company's website in the investor relations section. This morning's call and webcast are being recorded. Information regarding the replay of this call is available in our earnings release and on the TRTX website. Recordings are the property of TRTX, and any unauthorized broadcast or reproduction in any form is strictly prohibited.
Ashvin Rao: This morning's call will include forward-looking statements which are uncertain and outside of the company's control. Actual results may differ materially from those set forth in or implied by these forward-looking statements. For a discussion of risks that could affect results, please see the Risk Factors section of the company's latest Form 10-K and Form 10-Q. The company does not undertake any duty to update our forward-looking statements unless required to do so by law. We will refer during today's call to certain non-GAAP financial measures, which are reconciled to GAAP amounts in our Form 10-Q, our earnings release, and our earnings supplemental, all of which are available in the investor relations section of our website. Now I'll turn the call over to Doug.
Doug Bouquard: Thank you, Ashvin. Over the past quarter, the US economy continued to navigate a complex and evolving environment. While economic growth has remained relatively resilient and labor market conditions generally healthy, inflation has proven more persistent than many anticipated, contributing to a prolonged period of elevated interest rates and tighter financial conditions. As a result, businesses and investors continue to adapt to a higher cost of capital that differs meaningfully from the conditions that prevailed for much of the last decade. Within real estate, these dynamics have created both challenges and opportunities. Elevated rates, declining property values across certain sectors, and significant refinancing activity continue to pressure many real estate owners. With that backdrop, we continue to view the current market as an attractive investing environment, and we remain highly disciplined in our approach.
Doug Bouquard: We are not pursuing growth for growth's sake, but rather seeking to deploy capital into opportunities that offer compelling risk-adjusted returns. Importantly, one of our greatest advantages in the current environment is the breadth and depth of TPG's integrated real estate debt and equity platform. The ability to evaluate markets through both the debt and equity lens provides valuable insight into property values, capital flows, refinancing risks, and emerging trends across the market. This perspective helps us identify risks earlier, make better underwriting decisions, and proactively position the portfolio for changing market conditions. Against this backdrop, TRTX continues to execute on the business plan we outlined several years ago. During Q3, we closed $773 million of new investments and increased net earning assets by $600 million.
Doug Bouquard: Since September 2025, we've originated $2.3 billion of loan investments, representing nearly 45% of our current loan portfolio and contributing to a 36% year-over-year growth in net earning assets while maintaining a disciplined approach to underwriting, portfolio construction, and risk management. Notably, that growth is beginning to translate into earnings. Net interest income increased approximately 13% from Q2, and a significant portion of our Q3 originations closed toward the end of the quarter and did not contribute meaningfully to Q3 earnings. As these loans begin contributing over a full reporting period, the earnings capacity of the platform will become increasingly evident. From a credit perspective, portfolio performance continues to validate the disciplined approach we have taken throughout this cycle. Despite an evolving real estate market, our earnings remain resilient without any meaningful volatility to our risk ratings or CECL reserves.
Doug Bouquard: Throughout this period, we have sought to be proactive rather than reactive. We have maintained a transparent approach to risk ratings, established reserves that accurately reflect evolving market conditions, and actively managed credit exposures as market fundamentals changed. While these decisions have not always been easy, we believe they have positioned the company favorably relative to competitors that continue to work through these credit issues for investments made prior to 2023. Our portfolio consists of 59 loan investments secured by over 150 underlying properties, representing $5.2 billion of total commitments. The average loan size is $88 million, and multifamily and industrial assets comprise approximately 75% of our investment portfolio. The diversification of the portfolio, combined with our continued focus on institutional sponsorship and high-quality assets, positions us well to navigate a challenging market environment while delivering stable earnings. We have applied the same proactive philosophy to liability management.
Doug Bouquard: We have diversified our funding sources, extended liability duration, reduced mark-to-market exposures, and improved liquidity. As a result, the balance sheet optimization we have discussed throughout this cycle is now largely complete. Today, approximately 75% of our leverage is funded through CRE CLOs in our Term Loan B providing stable, long duration capital that supports earning visibility, dividend stability, and continued portfolio growth. An important example of this progress is the recent closing of FL8, our eighth CRE CLO. The transaction securitized approximately $1 billion of collateral that was approximately 95% multifamily and industrial, and is expected to be accretive to our cost of funds and increased our percentage of non-marked-to-market liabilities to over 85%. We are particularly pleased with this execution given the subsequent widening of CRE CLO spreads and softer market conditions.
Doug Bouquard: Beyond improving our financing profile, FL8 established a new 30-month reinvestment period that when combined with the existing reinvestment windows in FL6 and FL7, provide significant flexibility to recycle capital and continue to grow earnings in the coming years. This embedded reinvestment capacity represents a meaningful competitive advantage and further differentiates TRTX within the real estate credit sector. Loan spreads widen from current levels. These reinvestment vehicles provide us with the ability to capitalize on those opportunities and potentially enhance future earnings power. We remain focused on allocating capital where it can generate the greatest value for shareholders. During the quarter, we fully exhausted our existing $25 million share repurchase plan, repurchasing shares of what remains a meaningful discount to book value. Consistent with that belief, our board subsequently approved a new $50 million share repurchase plan.
Doug Bouquard: We view these repurchases as a compelling use of capital and an effective way to create long-term shareholder value while our shares continue to trade at levels that understate the quality of the platform and its earnings potential. As we look ahead, TRTX is operating from a position of considerable strength. Throughout the cycle, we have proactively managed both sides of our balance sheet, strengthened our liability structure, and created significant embedded reinvestment capacity. We continue to believe the market is not fully recognizing the earning stability embedded within our platform or the quality of our investment portfolio. We acknowledge that this higher interest rate environment will continue to stress legacy capital structures. Fortunately, the majority of our balance sheet was originated over the past two years, and these investments were sized and structured in a higher rate environment.
Doug Bouquard: We are well-positioned to continue delivering resilient earnings given TRTX's granular, diverse portfolio in tandem with a low cost, stable liability structure. The significant increase in our Q3 NIM is beginning to show the impact of our 2026 investments and the quality of the company's earnings. The foundation we have built leaves TRTX exceptionally well-positioned, not only to navigate this cycle, but to further differentiate from our competitive set while creating long-term value for shareholders. With that, I will turn the call over to Brandon to discuss our financial results in greater detail.
Brandon Fox: Thank you, Doug, and good morning. For the third quarter of 2026, TRTX reported GAAP net income attributable to common stockholders of $5.8 million, or $0.08 per diluted common share. Distributable earnings were $5.1 million, or $0.07 per diluted common share after a $13 million realized loss associated with the conversion of one multifamily loan to real estate owned. Distributable earnings before realized losses were $18.1 million, or $0.24 per diluted common share, covering our common stock dividend for the quarter. Net interest income increased $3 million, or 13%, from the second quarter, reflecting quarter over quarter growth in our loan portfolio. As Doug mentioned, we fully utilized the remaining capacity under our share repurchase plan. During the quarter, we repurchased 1.2 million shares of common stock at a weighted average price of $8 per share for a total consideration of $9.3 million.
Brandon Fox: These repurchases increased book value per common share by $0.04. Subsequent to quarter end, our board approved a new $50 million share repurchase program, doubling the size of our prior authorization. Book value per common share was $10.85 at quarter end, a decline of $0.10 from 30 June, primarily reflecting credit loss expense associated with the significant growth in our loan portfolio and macroeconomic conditions during the quarter. For the three months ended 30 September, we made nine first mortgage loan investments representing total commitments of $772.7 million at a weighted average credit spread of 3.02%. Funded $71.8 million of future funding obligations on our existing loans and received $119.6 million of loan repayments, including one full multifamily loan repayment of $106 million. Subsequent to quarter end, we received $72.2 million of additional loan repayments related to one full multifamily repayment and one industrial partial repayment.
Brandon Fox: Quarter over quarter, net earning assets increased by $599.5 million or 14% to $4.9 billion. Total loan commitments increased to $5.2 billion. Over the last 12 months, we made $2.3 billion of loan investments, contributing to the 36% year over year growth in our net earning assets through 30 September. At quarter end, our loan portfolio was 100% performing, and our weighted average risk rating remained unchanged at 3.0. Our CECL reserve declined by $4.5 million to $76.1 million, or 147 basis points of total loan commitments, compared with 179 basis points at 30 June. The decrease reflects the conversion of a multifamily loan to REO during the quarter. The conversion to REO did not have an impact to book value because it was fully reserved. This reduction in the CECL reserve was partially offset by growth from the loan portfolio.
Brandon Fox: From a capital markets perspective, following quarter end, we closed TRTX 2026-FL8, a $1 billion managed CRE CLO, and placed approximately $820 million of investment-grade securities with institutional investors. The issuance was leverage neutral to the company, generated nearly $43 million of net cash proceeds, and is expected to further improve the company's cost of funds. Following the issuance, non-mark-to-market financing for our loan portfolio increased to approximately 85%, further strengthening the durability of our liability structure and providing additional flexibility to support future investment activity. We ended the quarter with near-term liquidity of $291.6 million, consisting of $70.8 million of cash on hand, including amounts held to satisfy liquidity covenants, $109.3 million of undrawn capacity under secured financing arrangements, $100 million of undrawn capacity under our corporate revolver, and $11.5 million of CRE CLO reinvestment proceeds held at the trustee.
Brandon Fox: We also held $187.2 million of unencumbered loan investments eligible to be pledged under existing financing arrangements. Our liability structure was 78.8% non-mark-to-market financing, and our weighted average cost of funds was 1.81% compared to 1.95% a year ago. Total leverage increased to 4.03 times from 3.32 times at 30 June, reflecting our investment activity during the quarter. At quarter end, we had approximately $1.2 billion of available financing capacity to support loan investment activity and remained in compliance with all financial covenants. With that, we welcome your questions. Operator?
Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question at this time, you may press star one from your telephone keypad, and a confirmation tone will indicate your line is in the question queue. You may press star two if you would like to withdraw your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please for our first question. Thank you. Our first question comes from the line of Rick Shane with JPMorgan. Please proceed with your question.
Rick Shane: Hey, guys. Good morning, and thanks for taking my questions. Look, you guys had pointed out the recency of your portfolio and transactions that are structured to reflect the new environment. I am curious, obviously, given how much rates even moved during Q3, how you think about that. Specifically, I am curious how it impacts transaction structure, and sort of meeting of the minds for buyers, sellers, and lenders. As federal rates change so quickly and that potentially impacts property values, does that slow transactions? Even though the portfolio has the advantage of being constructed more recently, does the latest rate shift create some incremental concern?
Doug Bouquard: Thanks, Rick, and good morning. I think first, what we see within our portfolio, I would say kind of more locally across our integrated debt and equity business, is that the first order here has just been, I think a continued drop in acquisition activity. Simply put, buyer and seller, particularly on the multifamily side, that gap continues to widen. So I think the first result of all this is just a drop in activity. I would say secondly, as we think about what the right kind of stabilized debt yield should be and sort of how we think about cap rate evolution, we have been pretty consistent trying to make loans that are reflective of an elevated rate environment.
Doug Bouquard: I know that you had highlighted it, but just the way our book is positioned, and if you even kind of go into multifamily, 80% of our multifamily exposure is originated 2024 and later. Then actually, if you kind of look at some of our anticipated repayments, we expect that that can really increase closer to 90%. So our current balance sheet is, again, very much reflective of, I would say, a market where rates were higher, values were lower within multi and industrials and really all other sectors. I think that really what is happening on the real estate credit side is we are really starting to see, I think, borrowers think long and hard about how they think about capital allocation going forward, particularly for some of the sort of legacy exposures that I think people have, and we are seeing a lot of those loans.
Doug Bouquard: A lot of those loans are sitting on others' balance sheets. They are loans from 2021 and sometimes earlier. Those loans are coming due, and when they come to us for a new loan, that likely is going to require some amount of cash in. We actually have a deal in our pipeline right now from an institutional sponsor, Class A real estate, where they are actually going to be paying off a loan from the agencies, but that is going to require a cash equity infusion from our capital base. That is a pretty unique sort of flow of capital where you are seeing an agency loan needing to get paid off and they are coming to a commercial mortgage REIT with a cash-in to be able to effectuate that transaction. So that is a little bit of what we are seeing.
Doug Bouquard: I would say, lastly, local to our portfolio, kind of what we are seeing bottoms up is I think that the cost of owning a home, the cost of
Doug Bouquard: Borrowing, if you are a first-time purchaser, continues to be elevated, and that has really kept a really strong amount of demand, I would say, across multi-family generally. Just when you look at when you compare your mortgage payment to income relative to rent income, it still is very favorable towards renting. That seems to be a dynamic that, again, is really buoying what I will call the demand side of the equation in terms of tenants.
Rick Shane: Got it. Okay. That is helpful. If I may ask one follow-up. Look, as you are responding to my question, it occurs to me that when we are looking left, it is the punch from the right that just really determines the outcome. We are all sitting here higher for longer. Presumably, eventually rates are going to move lower. I am curious in this environment, are you able to capture attractive floors on the loans that you are making? What sort of levels? Is there power there in this environment, given how high rates are, or is that something that is a really contentious deal point?
Doug Bouquard: Yeah. Look, I would say that the floors that we are able to get have been, I would say, slowly creeping up. I feel like most of what we were doing earlier, the sort of rate floor probably had somewhere in the 2.5% to 3% range, generally speaking, and we are starting to see that drift higher. I think in a competitive process where we will see the trade-off is there can be a debate around loan spread relative to rate. If I can get a wider loan spread and maybe a lower rate floor, in some cases, we will pursue that. In other cases, maybe we want a slightly tighter loan spread and be able to get a higher rate floor. That definitely is value that we have been able to capture.
Doug Bouquard: Then again, you think about the risk within our current balance sheet, given it is all largely newly originated. Those loans are all structured with interest rate caps, and those assets generally tend to be in transition. So really, a sort of rate move like this locally and in the near term has less effect in terms of our current exposure. On new business, the last thing I will add is we have seen back leverage spreads, if you just look at the CRE CLO market, have come wider.
Doug Bouquard: When we brought our CRE CLO to market the first week after Labor Day to now, those weighted average cost of funds are give or take about 25 basis points wider, and that tends to flow into loan spreads, not instantly, but probably over a couple of weeks, and we are starting to see that right now with the loans that we are pursuing. Our balance sheet is really well-positioned to capture that widening loan spread because we have effectively locked in our liabilities at a tighter point in the market.
Rick Shane: Well, paradoxically, I cannot believe it is almost November, and at the same time, the week after Labor Day seems like a lifetime ago.
Doug Bouquard: Yeah.
Rick Shane: So appreciate both sides to that.
Doug Bouquard: Thanks, Rick.
Rick Shane: Thanks, guys.
Doug Bouquard: Thanks, Rick. Appreciate it.
Operator: The next questions are from the line of Tom Catherwood with BTIG. Please proceed with your questions.
Tom Catherwood: Thanks, and good morning, everybody. Doug, let me kind of go into the originations. Obviously strong this quarter, definitely better than feared. When as you look at your forward pipeline, has there been a slowdown in either the entire pipeline or in specific asset classes given the higher rates? Along with that, do you expect origination activity to more match repayments now that you are at the upper end of your leverage targets?
Doug Bouquard: Yeah, I will cover the first. I would say that what we have seen in terms of just our pipeline is there remains still a tremendous need for capital within real estate lending broadly, and then specifically within multi and industrial, which is where we focus. I think that perhaps the only challenge lately has been the time from when we sign a deal up to when it closes is probably more what kind of keeps me awake because that, of course, can put pressure in terms of our earnings. I would say our pipeline still looks incredibly strong. I am not seeing really a big drop-off at all with the only thing of note being new acquisitions are few and far between.
Doug Bouquard: That has been consistent for, frankly, the last 2 or 3 years, but that seems to be a trend that does not really show any sign of abating. I would add secondly to your part 2 of the question, we are at a point now where as we have sort of approached our target leverage and our target balance sheet size, that you are exactly right. Our DE will sort of be less levered to our minute-to-minute pipeline, and we are definitely at a point now where it is more of a one in, one out in terms of our loan portfolio, which I think adds two things. One, provides a little bit more kind of stability in terms of our DE. Then we look at the size and scale and diversity of our portfolio. It just allows us to, I think, manage some of the volatility quarter to quarter a little bit easier.
Doug Bouquard: I think as you guys have all been supporting us as we have been net growing our balance sheet, and that can be sometimes you feel like you make two loans and then one loan pays off, and sort of getting that balance right as you are growing can be challenging. But we have really kind of hit, I think, a pretty nice point in terms of the size of our balance sheet, and our liability structure, again, sort of allows us to be able to risk manage throughout any type of real estate cycle.
Tom Catherwood: Appreciate that, Doug. There is one follow-up to that for me. The other thought of or the ability besides loans in and out with repayments and originations is repatriating capital from the REO book. That had been a plan earlier this year, obviously. But with higher rates, I assume that the transaction market is somewhat frozen. So maybe in that higher interest rate environment, where do REO monetizations sit in your list of either priorities or expectations through the balance of 2026?
Doug Bouquard: Sure. Yeah. I would say that really no change to our strategy and pacing there. Well, first, I think just as a reminder, our REO portfolio is a positive contributor on a quarterly basis to our DE. I always like to remind everyone that it is not a drag, and frankly, it is a positive generator of earnings. The sort of rush or urgency that maybe others have where it is a negative drag, we are in a very different spot. Secondly, we are right now in the final stages of marketing one of our multifamily properties. We do have an LOI in place, and as that transaction becomes more certain, we will make sure to update the market accordingly. But again, from a timing perspective and its effect in terms of our business plan, I would say no major change.
Doug Bouquard: Again, I think the fact that our portfolio is generating positive DE kind of allows us to be opportunistic in terms of when we sell and maximize value for shareholders.
Tom Catherwood: Appreciate the answers. Thanks, Doug.
Doug Bouquard: Yep. Absolutely.
Operator: Thank you. We will next questions from the line of Chris Muller with Citizens Capital. Please proceed with your questions.
Chris Muller: Hey, guys. Thanks for taking the questions. I wanted to ask on the foreclosure. I guess, first off, what kind of drove the quick turnaround from 4 rating to foreclosure, especially given that it was already modified? Looking at the 27% discount to par on multifamily seems a little high. Is that market specific or property specific, or are you guys seeing multifamily valuations trend lower in general?
Doug Bouquard: Yeah, I think this was actually very idiosyncratic. I mean, we had moved the risk rating on this roughly about a year ago, 1. I think that really the challenge with this asset was really a combination of a weak market and a borrower that was under a certain amount of distress and sort of had begun to, I would say, under-invest within that asset. So we rated it as a 4. As Brendan had shared, this conversion to REO was, again, very idiosyncratic specific to the property, less to do with kind of what we are seeing broadly. Our plan with the asset is simple in terms of our plan is to, now that we own it, stabilize it, and then basically sell it in the future.
Doug Bouquard: Again, it is a relatively small asset in the context of our balance sheet, and again, was a little bit more idiosyncratic relative to both a market and a borrower that was in distress.
Chris Muller: Got it. I see there was also another multifamily loan that was modified in the quarter. Can you just provide some details on that? What was the prior rating? Where was the property located? What drove the need for modification there?
Ryan Roberto: Thanks, Chris. This is Ryan. This was a property located in Sunbelt Market, and just saw, given some of the migration trends that we have seen, just a spike in vacancy at the property. Again, more of a temporary one-time thing. So again, we modified it to provide a solid footing and a clear plan to restabilize the property. Again, I think these are heading in the right direction there. Again, I would say this is a regular way of risk management of what we do in the portfolio throughout each quarter.
Chris Muller: Got it. Appreciate you guys taking the questions this morning.
Doug Bouquard: Absolutely. Thank you.
Operator: Thank you. As a reminder to ask a question at this time, you may press star one from your telephone keypad. The next question is from the line of Gabe Poggi with Raymond James. Please proceed with your questions.
Gabe Poggi: Hey, good morning, guys, and thanks for taking the questions. Obviously, the world's changed a lot in the last 45 to 60 days. I appreciate the fact that TRTX's book is very much newer vintage. Can you guys talk about, just because it's the focus of the market, on legacy credit that you still have? I use the word legacy, it's a little bit older vintage, but some pending maturities that you have due in Q4, early next year. Just talk to how your plan of attack is on those assets, on those loans.
Doug Bouquard: Yeah. Sure. I'd say first, we built, I think, a lot of credibility, and we provide a lot of transparency over the years from both the CECL and risk ratings perspective. I think when anyone asks about our current balance sheet, I always point them to how we risk rate and the reserves that we take. That really is the sort of guiding light in terms of our view around the risk.
Doug Bouquard: Now, when you think about, Gabe, to your point, there's always sort of tactical side, but we've also been very consistent that when we look at a loan, as long as the borrower is committed to the asset, and as long as our LTV we feel like is at a substantial discount to today's value, we are more than willing to be working with that borrower if they need a little more time or relief on a certain item. I think that when that tone changes is where if we have the opinion that our loan's out of balance or that's a borrower that's going to be less committed to the asset, then frankly, we'd sort of change our posture.
Doug Bouquard: I think the sort of high-level answer, of course, would be, I think our CECL and our risk ratings both historically how we have approached it, and then also from a sort of resolution perspective in terms of where we have sold assets relative to carrying value, and I think just how little volatility we have had within CECL and risk ratings. I think that should really be the sort of guiding light. I would say lastly, Gabe, I think a really important point of all of this really gets to our liability structure. I think it is one of the most remarkable weapons that we have, and I give our team a lot of credit for what they have done over the years. These things take years to really optimize. But when you look at our liability structure, 85% of that currently is non-mark-to-market. It is all match term, long duration.
Doug Bouquard: Look, in a downside scenario, which is what we as lenders are always focused on, I like the fact that our liability structure gives us a lot of flexibility to be able to risk manage through a different type of real estate market. If things were to get better or to get worse, again, we have got a very stable, long duration, non-mark-to-market, heavy liability structure, and that is what allows you to frankly maximize NPV and be able to deliver for shareholders in terms of value.
Gabe Poggi: Very helpful, thorough answer. One follow-up, if I can. You guys were proactive in getting the last CRE CLO done when you did. But obviously, CRE CLO spreads have widened a bit, even to the top of the stack. How has that translated to the lending environment, what you are seeing in spreads across all sub-sectors, not only multi, but office, et cetera, where there may be relative value that you think is attractive in this higher rate environment?
Doug Bouquard: Yeah. I think it is very much a moving target, I would say within multifamily and industrial. I would say that spot in terms of what we are seeing within our pipeline, I would say it is two things. One, for what I will call class A-plus newly built multifamily. I would say loan spreads are probably out about 15 to 30 basis points, very much varies based on the deal. I think that where we have seen more spread widening, and I would say probably more to the tune of 25 to even 50 basis points wider, is more class B, C real estate, particularly multifamily, where there has been fewer assets trading. It is a slightly older asset, slightly lower quality. I think that is where we are seeing spreads move wider.
Doug Bouquard: But again, at the same time, just in the past week, there has been some healing in terms of both where the ten-year is and also where the front end is pricing. So pretty quickly, those spreads can move in the other direction. But I'd say simply put, spreads are wider within multifamily. I think it really varies largely, I'd say, on just the quality of the asset. Outside of multi, I would say industrial's been very resilient. I think that industrial fundamentals, and if you look at the implied cap rates of a lot of the publicly traded industrial REITs, that continues to be a sector that has, I would say, performed well. We've seen a lot of positive leasing velocity across the exposure that we have. So we're seeing both.
Doug Bouquard: I would say spreads remain somewhat firm for industrial and frankly, not seeing a ton of flow there as most of those assets have sort of termed out. I think we're seeing, again, just a lot more flow coming in on the multifamily side. Then, as you zoom out sort of beyond multi and industrial, where we have some smaller portfolios, that's really where we're a sharpshooter, right? We're looking at office, mixed use, hotel. That's where we're probably passing on 99% of the deals that we see. So it's kind of hard to comment on how much wider spreads have gone. I feel like office specifically, spreads have just been generally wide. So I feel like this rate move has actually probably affected that sector less.
Doug Bouquard: And I think that more of the effect of the move in rates has been on what I'll call the sort of tighter cap rate asset classes like a multifamily and industrial.
Gabe Poggi: Thanks, guys.
Doug Bouquard: Yeah. Thanks, Gabe. Appreciate it.
Operator: Thank you. At this time, I will hand the call back to Doug for closing remarks.
Doug Bouquard: Thank you all for taking the time this morning for our quarterly earnings call, and we look forward to updating you on progress in coming quarters. Have a great week.
Operator: This will conclude today's conference. You may disconnect your lines at this time. We thank you for your participation. Have a wonderful day.
