Financial Data and Key Metrics Changes - For Q4 2025, the company reported FFOA per share of $0.64 and full-year FFOA per share of $2.54, achieving the midpoints of previously provided guidance ranges [11][12] - Same-store revenue growth met guidance, while same-store expense and NOI growth results exceeded expectations [11][12] - The company repurchased approximately $93 million of common stock at a weighted average share price of $35.56, reflecting a sizable discount to NAV [13] Business Line Data and Key Metrics Changes - The acquisition of the Enclave at Potomac Club for $147 million is expected to outperform the market based on predictive analytics [12] - The company contributed four apartment communities to a joint venture, increasing its size to approximately $850 million [12] - The company anticipates blended lease rate growth of 1.5% to 2% in 2026, which is approximately 100 basis points higher than 2025 [21][22] Market Data and Key Metrics Changes - The company noted a slowdown in supply completions across its markets, which is expected to bolster growth [8][16] - The average rent-to-income ratio for residents remains below the long-term average, indicating affordability for rent increases [15] - The company expects a more muted job growth environment but anticipates continued demand due to high home prices and mortgage rates [14][15] Company Strategy and Development Direction - The company emphasizes a culture of innovation and data-driven decision-making to enhance shareholder value [6][7] - Ongoing investments in customer experience and AI tools are expected to drive incremental NOI growth [9][27] - The company plans to be a net seller of assets in 2026, actively marketing numerous apartment communities for sale [18][48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating momentum achieved in late 2025 continuing into 2026, with expectations for high occupancy and lease rate growth [8][29] - The company is focused on optimizing occupancy and reducing turnover, with expectations for continued strong performance in key markets [38][81] - Management acknowledged potential regulatory risks but remains confident in the company's ability to navigate these challenges [72][74] Other Important Information - The company welcomed Ellen Goitia as a new board member, enhancing its governance expertise [9][10] - The company reported that its same-store revenue growth was at or above peer median across 13 of 14 markets shared with public peers in 2025 [30] Q&A Session Summary Question: Can you talk about your blended rate growth expectation for the full year? - Management noted that they are off to a better start than expected, with January's blended rate growth at about 1%, which is 50-75 basis points better than originally thought [32][34] Question: What are your thoughts on occupancy and retention? - Management emphasized efficiency in the turn process and expects to maintain occupancy around 96% while pushing for renewals in the 5% range [36][39] Question: Can you provide detail on the variance across your regions? - Management indicated stronger acceleration in the Sunbelt markets compared to coastal markets, with Dallas showing positive trends [41][42] Question: How much could you step on the gas on dispositions this year? - Management stated they are comfortable executing on a midpoint of dispositions while being mindful of tax gain capacity [46][48] Question: What factors will drive the contribution from other revenues in 2026? - Management expects mid-single-digit growth from initiatives like Wi-Fi and parking, with a focus on optimizing storage and pet rent [50][52] Question: What is your expectation for key coastal markets? - Management expects stronger performance in New York and San Francisco, while Boston and D.C. may not perform as well [78][81]

UDR (NYSE:UDR) Q4 2025 Earnings call February 10, 2026 12:00 PM ET Company ParticipantsAnthony Paolone - Executive Director and Co‑Head of U.S. Real Estate Stock ResearchDavid Bragg - CFOJamie Feldman - Managing DirectorJohn Pawlowski - Managing DirectorMichael Lacy - SVPThomas W. Toomey - Chairman, President and CEOTrent Trujillo - VP of Investor RelationsConference Call ParticipantsAlexander Goldfarb - Managing Director and Senior Equity Research AnalystAlexander Kim - Senior Associate and Equity Research ...

Financial Data and Key Metrics Changes - For the full year 2025, the company reported a GAAP net loss of $1 million or $0.02 per diluted common share, and a distributable earnings loss of $7 million or $0.12 per diluted common share [14] - In Q4 2025, the company reported a GAAP net loss of approximately $4 million or $0.07 per diluted common share, while distributable earnings were approximately $8 million or $0.15 per diluted common share, including a realized gain of $2 million [14][15] - The net debt-to-equity ratio at the end of Q4 was 1.6x, reflecting moderate leverage to support future growth [16] Business Line Data and Key Metrics Changes - The company reduced office loans by 30% since year-end 2024 to $447 million, representing a 10% decrease quarter-over-quarter [7][17] - New loan commitments in Q4 totaled $393 million, contributing to a loan portfolio growth of 24% compared to Q3 2025, reaching an outstanding principal balance of $1.6 billion [16] Market Data and Key Metrics Changes - The Ares Real Estate debt platform originated over $9 billion globally in new commitments in 2025, nearly double the amount from 2024 [12] - The company noted that more than 50% of new loan originations were collateralized by residential and industrial properties, indicating a strategic shift towards these sectors [11] Company Strategy and Development Direction - The company aims to resolve the remaining risk-rated 4 and 5 loans while maintaining a flexible balance sheet with ample liquidity exceeding $100 million [6][12] - The focus for 2026 includes addressing underperforming loans and reshaping the portfolio to enhance future growth [12][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the commercial real estate market experienced a transition in 2025, with improved conditions in the second half of the year due to easing monetary policy [5] - The company expressed confidence in its earnings potential despite recognizing that the trajectory of earnings may be uneven based on asset resolutions [12] Other Important Information - The board declared a regular cash dividend of $0.15 per common share for Q1 2026, reflecting confidence in the company's earnings growth potential [12][22] - The total CECL reserve at year-end 2025 was $127 million, with 92% related to risk-rated 4 and 5 loans [20] Q&A Session Summary Question: When will Brooklyn start receiving repayments for the condo project? - Management indicated that sales are expected to begin in the second half of 2026, with proceeds first going to pay down debt [25][26] Question: What is the current debt yield for the Chicago office asset? - Management noted that while specific yields were not disclosed, the asset's occupancy and weighted average lease term provide some stability [28] Question: What are the attractive risk-adjusted returns across different sectors? - Management highlighted a broad spectrum of opportunities, particularly in logistics, industrial, and multifamily sectors, while continuing to avoid the office sector [36] Question: How much higher is ACRE's leverage expected to trend throughout 2026? - Management expects leverage to potentially reach around 2.0x in the near term, with a long-term target of 3.0x [45] Question: Is the facility with Ares still in place for quick loan onboarding? - Management confirmed that the capacity for warehousing assets is still available, though its utilization may decrease due to the current structuring strategies [60]

Ares Commercial Real Estate (NYSE:ACRE) Q4 2025 Earnings call February 10, 2026 12:00 PM ET Company ParticipantsBryan Donohoe - CEOJeffrey Gonzales - CFOJohn Stilmar - Partner and Co-Head of Public Markets Investor RelationsConference Call ParticipantsChristopher Muller - Equity Research AnalystGabe Poggi - AnalystJade Rahmani - Equity Research AnalystJohn Nickodemus - Director and Equity Research AnalystMelissa Lobo - Senior AnalystRick Shane - MD and Senior Equity Research AnalystOperatorGood afternoon. W ...

Financial Data and Key Metrics Changes - For the quarter ended December 31st, core net investment income was $0.14 per share, while GAAP net investment income was $0.11 per share [4][14] - The total dividend will remain at $0.08 per share, consisting of a $0.04 base dividend and a $0.04 supplemental dividend, supported by $41 million of undistributed spillover income [4][5] - As of December 31st, the NAV was $7 per share, down 1.5% from $7.11 per share in the prior quarter [14] Business Line Data and Key Metrics Changes - The company fully exited its equity investment in JF Holdings, receiving total proceeds of $68 million and generating a realized gain of $63 million [5] - The portfolio totaled $1.2 billion, with $115 million invested in three new and 51 existing portfolio companies during the quarter [11] - The joint venture (JV) portfolio totaled $1.4 billion, with an average NII yield on invested capital in the JV of 16.4% [12] Market Data and Key Metrics Changes - The median leverage across the portfolio was 4.5x, with median interest coverage of 2.1x [7][15] - The pricing on high-quality first-lien term loans remains attractive, typically ranging from SOFR plus 475-525 basis points [7] - The company originated three new platform investments with a median debt-to-EBITDA of 4x and interest coverage of 2.9x [8] Company Strategy and Development Direction - The company is focused on reducing total equity exposure and monetizing investments, with a strategy to rotate capital into new income-producing investments [6][11] - The current market environment is favorable for lenders with strong private equity sponsor relationships and disciplined underwriting, where the company has a competitive advantage [7] - The company aims to deliver compelling risk-adjusted returns through stable income generation and long-term capital preservation [12][13] Management's Comments on Operating Environment and Future Outlook - Management noted an increase in M&A transaction activity across the private middle market, expanding the pipeline of new investment opportunities [6] - The company remains committed to capital preservation and a disciplined investment approach, with a focus on finding investment opportunities in growing middle market companies [12][13] - Management expressed confidence in the resilience of their portfolio and the ability to navigate through market chaos, leveraging past experiences [36][38] Other Important Information - The company has a diversified capital structure across multiple funding sources, including both secured and unsecured debt [14][15] - The debt-to-equity ratio was 1.3x as of December 31st [14] Q&A Session Summary Question: Clarification on the supplemental dividend - Management confirmed that the $0.04 supplemental dividend will remain in place through December 2026 [18][19] Question: One-time expenses related to new bond issuance - Management stated there will be no one-time expenses related to the new debt issuance, as fees will be capitalized and amortized [20] Question: AI as a risk or opportunity for borrowers - Management indicated that AI could present both risks and opportunities, emphasizing the importance of investing in companies with strong customer relationships and defensible market positions [22][24] Question: Potential for additional meaningful exits in equity rotation - Management remains optimistic about M&A activity and believes there are still opportunities for meaningful exits [28] Question: Dividend income decline related to the senior loan fund - Management confirmed that the decline in dividend income was related to the PSLF [52] Question: Trading coupon for stronger covenants - Management stated that covenants are a given in their part of the market, and they prioritize credit quality over yield [53]

Financial Data and Key Metrics Changes - The company reported record-breaking revenue of $126 million, a 51% increase from the previous year [2] - Cash flow from operating activities reached $133 million, up 196%, while free cash flow was $90 million, up 336% from last year [2][3] - Adjusted net income for the quarter was $47.9 million or $0.22 per share, compared to $22 million or $0.10 per share in the same quarter last year, reflecting a 118% increase [3][4] - The company reported a net income of -$15.8 million for the quarter, primarily due to a $60 million non-cash charge on derivative liabilities [3] Business Line Data and Key Metrics Changes - Silver accounted for 72% of total revenue, with an 80% increase in the realized selling price of silver [3] - Production at Ying increased, with tons mined and milled up 23% and 18% respectively compared to Q3 2025 [6] - Q3 production costs averaged $76 per ton at Ying, down 11% from last year, and cash cost per ounce of silver was negative $1.22 [7] Market Data and Key Metrics Changes - The company produced approximately 1.9 million ounces of silver, just over 2,000 ounces of gold, 16 million pounds of lead, and 7 million pounds of zinc in Q3 [5] - Year-to-date production figures showed increases in silver, gold, and lead production by 1%, 42%, and 1% respectively, while zinc production decreased by 6% [6] Company Strategy and Development Direction - The company is focused on expanding mining capacity across its licenses at Ying, with recent permit renewals and expansions [8] - Investment in growth projects at Ying totaled $9 million in Q3, aimed at enhancing underground access and material handling [7] - The company is also advancing its projects in Kyrgyzstan, acquiring a 70% interest in gold projects to diversify its production portfolio [13][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in Q2 but expressed optimism about smoothing out Q4 performance due to additional tons to mill during the Chinese New Year [16] - The company is actively engaged in obtaining necessary permits for its projects, with the environmental impact study for the Condor project approved [11] Other Important Information - The company ended the quarter with a strong cash balance of $463 million, an increase of over $80 million from the previous quarter [5] - A transaction to acquire a gold project in Kyrgyzstan for $162 million was announced, with $92 million paid at closing [5] Q&A Session Summary Question: Guidance and throughput at Ying - Analyst inquired about guidance and throughput expectations, noting that while guidance remains unchanged, throughput may exceed expectations despite lower grades [16] Question: Derivative liability details - Analyst asked if the $60 million derivative liability was solely related to convertible notes, to which management confirmed it was [17]

Financial Data and Key Metrics Changes - The company reported record-breaking revenue of $126 million, an increase of 51% from the previous year [2] - Cash flow from operating activities reached $133 million, up 196% year-over-year, while free cash flow was $90 million, up 336% [2] - Adjusted net income for the quarter was $47.9 million or $0.22 per share, compared to $22 million or $0.10 per share in the same quarter last year, reflecting a 118% increase [3][4] - The net income reported was -$15.8 million due to a significant non-cash charge of $60 million related to derivative liabilities [3] Business Line Data and Key Metrics Changes - Silver accounted for 72% of total revenue, with an 80% increase in the realized selling price of silver, adding just under $49 per ounce after smelter deductions [3] - Production included approximately 1.9 million ounces of silver, over 2,000 ounces of gold, 16 million pounds of lead, and 7 million pounds of zinc [5] - Production costs at Ying averaged $76 per ton, down 11% from the previous year, with cash cost per ounce of silver net of byproduct credits at negative $1.22 [6][7] Market Data and Key Metrics Changes - The company ended the quarter with a strong cash balance of $463 million, an increase of over $80 million from September 30 [5] - Investments in associates and other companies had a total market value of $233 million as of December 31, recently pegged at just under $260 million [5] Company Strategy and Development Direction - The company is focused on expanding mining capacity across its licenses at Ying, with recent permit renewals increasing capacity significantly [8] - Construction at the El Domo mine in Ecuador is ongoing, with significant earth-moving volumes completed [10] - The company has acquired a 70% interest in gold projects in Kyrgyzstan, aligning with its strategy to diversify and enhance exposure to gold [12][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in meeting guidance due to lower grades but indicated that increased throughput during the Chinese New Year could help mitigate Q4 performance [15] - The company is actively engaged in obtaining necessary permits for further development, particularly for the Condor Gold project [11] Other Important Information - The company invested nearly $26 million in operations in China and $18 million in the El Domo project during the quarter [4] - The company is in the process of finalizing a contract with a new mining contractor for the El Domo project [10] Q&A Session Summary Question: Guidance and throughput at Ying - Management indicated that while guidance remains unchanged, throughput is likely tracking higher than the high end, but lower grades may pose challenges [15] Question: Derivative liability details - The $60 million derivative liability was solely related to convertible notes [16]

Financial Data and Key Metrics Changes - For the quarter ended December 31st, core net investment income was $0.14 per share, while GAAP net investment income was $0.11 per share [5][14] - The NAV as of December 31st was $7 per share, down 1.5% from $7.11 per share in the prior quarter [15] - The debt-to-equity ratio was reported at 1.3x [15] Business Line Data and Key Metrics Changes - The company fully exited its equity investment in JF Holdings, receiving total proceeds of $68 million and generating a realized gain of $63 million [6] - The portfolio totaled $1.2 billion, with $115 million invested in three new and 51 existing portfolio companies during the quarter [11] - The joint venture (JV) portfolio totaled $1.4 billion, with an average net investment income yield of 16.4% over the last 12 months [12] Market Data and Key Metrics Changes - The median leverage across the portfolio was 4.5 times, with median interest coverage of 2.1 times [7] - The weighted average yield on debt investments was 10.9%, with 89% of the debt portfolio being floating rate [16] Company Strategy and Development Direction - The company aims to reduce total equity exposure and focus on generating current income through new investments [6][11] - The current market environment is seeing an increase in M&A activity, which is expected to drive repayments of existing portfolio investments [7] - The company emphasizes maintaining strong private equity sponsor relationships and disciplined underwriting as competitive advantages [7] Management's Comments on Operating Environment and Future Outlook - Management noted that the current environment favors lenders with strong relationships and disciplined underwriting, which aligns with the company's strategy [7] - The company remains committed to capital preservation and delivering compelling risk-adjusted returns through stable income generation [12] - Management expressed optimism about the ongoing M&A activity in sectors like military, defense, and healthcare, which are expected to perform well [30] Other Important Information - The company plans to maintain the supplemental dividend of $0.04 per share through December 2026, supported by $41 million of undistributed spillover income [5][6] - The company has a rigorous underwriting process, with nearly all originated first-lien loans including meaningful covenant protections [10] Q&A Session Summary Question: Clarification on the supplemental dividend - Management confirmed that the $0.04 supplemental dividend will remain in place through December 2026 [20] Question: One-time expenses related to new bond issuance - Management stated there will be no one-time expenses related to the new debt issuance, as fees will be capitalized and amortized [21] Question: AI as a risk or opportunity for borrowers - Management indicated that AI could present both risks and opportunities, emphasizing the importance of investing in companies with strong customer relationships and defensible market positions [24][25] Question: Potential for additional meaningful exits in equity rotation - Management remains optimistic about M&A activity and believes there are still opportunities for exits in the current year [28][30] Question: Adjusting dividends and stock repurchase - Management explained the decision to maintain dividends over time to preserve credit ratings and manage leverage, while also considering stock buybacks [34][35] Question: Competitive landscape and cost of capital - Management acknowledged the competitive landscape and emphasized the importance of reducing equity exposure while managing the JV effectively [44][47]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported a GAAP net loss of $1 million or $0.02 per diluted common share, and a distributable earnings loss of $7 million or $0.12 per diluted common share [12] - In Q4 2025, the company reported a GAAP net loss of approximately $4 million or $0.07 per diluted common share, while distributable earnings were approximately $8 million or $0.15 per diluted common share, including a realized gain of $2 million [12][13] - The net debt-to-equity ratio at the end of Q4 was 1.6 times, an increase from 1.1 times in the previous quarter [13][42] Business Line Data and Key Metrics Changes - The company reduced office loans by 30% since year-end 2024 to $447 million, representing 28% of the total loan portfolio, down from 38% at the end of Q3 2025 [5][15] - New loan commitments in Q4 totaled $393 million, contributing to a total loan portfolio of $1.6 billion, a 24% increase from Q3 2025 [13][14] - The company closed 13 new loan commitments totaling $486 million in the second half of 2025, with over 50% collateralized by residential and industrial properties [9] Market Data and Key Metrics Changes - The Ares Real Estate debt platform originated over $9 billion globally in new commitments in 2025, nearly double the amount from 2024 [10] - The company anticipates that the trajectory of earnings may be uneven depending on the resolution of asset issues, but remains confident in its earnings potential [10] Company Strategy and Development Direction - The company aims to address risk-rated 4 and 5 loans while reducing office and REO assets, focusing on portfolio reshaping and investment activity [5][10] - The board declared a regular cash dividend of $0.15 per common share for Q1 2026, reflecting confidence in the execution of the business plan [10][20] - The company is focused on maintaining moderate leverage and ample liquidity, with available capital exceeding $100 million [5][19] Management's Comments on Operating Environment and Future Outlook - Management noted that the commercial real estate market experienced a transition in 2025, with improved conditions in the second half of the year due to easing monetary policy [4] - The company is optimistic about the potential for earnings growth and the resolution of remaining risk-rated loans, despite acknowledging that the timeline for asset resolutions is somewhat outside of their control [21][30] Other Important Information - The total CECL reserve at year-end 2025 was $127 million, representing approximately 8% of the total outstanding principal balance of loans held for investment [18] - The company has increased its borrowing capacity by $250 million and reduced borrowing costs through various actions [19] Q&A Session Summary Question: When will Brooklyn start receiving repayments for the condo project? - Management hopes to see a smooth sales process in the second half of 2026, with proceeds expected to pay down debt [23][24] Question: What is the current debt yield for the Chicago office asset? - Management indicated that while they have not provided a specific yield, the asset's occupancy and lease duration provide some patience for resolution [25][26] Question: Where do you see office exposure balanced by the end of 2026? - The focus remains on resolving risk-rated 4 and 5 loans, with expectations for a more regular cadence of asset repayments moving forward [29][30] Question: Where are the most attractive risk-adjusted returns currently? - Management noted a broad spectrum of opportunities across sectors, with a focus on logistics, industrial, and multifamily segments [34][35] Question: How much higher is ACRE's leverage expected to trend throughout 2026? - Management expects leverage to max out around 2.0 times in the near term, with a long-term target of 3.0 times [41][42] Question: What is the target portfolio size? - Management indicated that achieving a 3.0 debt-to-equity ratio would imply a loan portfolio size of about $2 billion [56]

UDR (NYSE:UDR) Q4 2025 Earnings call February 10, 2026 12:00 PM ET Speaker2Good evening and welcome to UDR's fourth quarter and full year 2025 earnings call. At this time, all lines are placed on mute to prevent any background noise. A question-and-answer session will follow the formal presentation. If you should need operator assistance during the call, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Vice Presi ...