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BRSP BrightSpire Capital

Participants
David Palame General Counsel
Mike Mazzei President and CEO
Andrew Witt Chief Operating Officer
Neale Redington Chief Financial Officer
Frank Saracino Chief Accounting Officer
Stephen Laws Raymond James
Randy Binner B.Riley
Call transcript
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Operator

Welcome to the Colony Credit Real Estate Incorporated Second Quarter 2020 Earnings Call. [Operator Instructions] I will now turn the conference over to your host, David Palame, General Counsel. Thank you.

You may begin.

David Palame

Good afternoon and welcome to Colony Credit Real Estate Inc second quarter 2020 earnings conference call.

Colony Estate, Estate company Colony call. to Colony as throughout refer Real Credit Credit will Credit Inc Real CLNC, this We or the

on Frank Witt questions. and President Financial Officer, to the Mike Speaking answer Chief Chief also Chief today Accounting on Redington, Executive line Officer, Mazzei; Andy Chief is Officer, company's Officer, Operating Neale call the Saracino and are the

note Potential uncertainties the the risks potential statements and coronavirus that contains pandemic the assumptions. I based including on results of effect call, over, novel and hand current company's financial Before expectations business COVID-XX. and presented These adverse the certain materially, of cause differ to to current the forward-looking could management's or please statements. subject risks, are call on information are this and uncertainties

to many of for discussed the XXXX forward-looking a COVID-XX adverse the numerous of cautioning quarter ongoing For All Factors XX-Q risk risks Risk affect update of that and could filed or to impacts current company first does today, the of result and with undertakes XX-K an and heightened SEC is that in discussion see should duty and future a other and from of as information as XXXX time, call no on of the X, results, this pandemic. of the the please time and periodic be risks statements our and August circumstances. the reports recent interpretation company's most section intend factors not events

was Mike Mike? useful an investors. to now, of the Real the measures website Estate. release on financial on and Executive Colony represents And like presents to and are non-GAAP is company company's measures earnings call available measures. the to over company's financial reconciliations President Officer released such certain In afternoon of information Mazzei, and Credit non-GAAP presented call GAAP to this addition, turn supplemental appropriate and presentation, which I'd the believes financial Chief explanation why The this

Mike Mazzei

David. On well uncertain second since team, you, The everyone achieved, behalf through is on by to start hard our wishing these also April best to cooperation. earnings possible X. second call quarter Welcome like This in call. Thank of CLNC outcomes will joining would I times. focus the company work, my and be

CLNC employees this doing day. every Our are

work remote to continue We locations. safely from

financial communication, to systems, operational work controls, Our seamlessly. technology and continue

productively return are We work until we the safely to continue confident, that can workplace. can to we

we second our through quarter extremely and During active. today, have been

of highlighted call, including increased earnings asset the focus, management an and with areas tenant key quarter On borrower first liability our on we and interactions. emphasis

frequent also maintained communication our with banking counterparties. We

stated and maintaining I liquidity, top the will addition, that priority. remain In enhancing

and generating with retaining currently initiatives. value million. benefits results To associated CLNC The at of sheet have COVID-XX. We support balance certain carefully we during versus assets, end, term and liquidity which completed incremental motion which of decisively the these of irons the COVID-XX, any and Given with probability fire, in because initiatives, the success core financing certain persistence substantial sales we multiple setting the the initiatives. to the our the of $XXX long costs need timing, liquidity, unknown of number have of to sequencing by of which We uncertainty in and act and doubled felt assets. a included weighed multiple of the this put stands

during to loans as and the June as ended real over March million $X.X $XXX well We quarter to $X.X portfolio also preferred quarter included This three involves equity hotel second CMBS reduced billion asset These core total XX the borrowings, owned securities, subsequent XX and by from have core estate. since sale billion. sales end. of assets,

another close level initiative detail. Sachs. liquidity non-recourse with was have the agreement entered closing In separately the Andy investment. equity in industrial Goldman of and on of Both investment coming asset are terms a this portfolio more an included on expected transaction equity financing an in an transactions these to sales sell to we agreed in will addition, to Also, months. discuss this

with results. in effort While we reduction necessary there the confident book the execution has value initiatives steps further team provided been by persistence and a we these earnings forth the the of transactions, these of sheet, and balance the to COVID-XX. protect associated taking have are CLNC meaningful are that The given put

to we debt million In Since repo have liquidity, our repo and financing million. from CMBS addition March securities exposures. also reduced we reduced our to generating other $XX XX, $XXX substantial have

concerns We calls. over eliminated have margin CMBS substantially

reduced have we Additionally, our our full. down paid revolver and we have also loan bank warehouse in lines

we discussed on counterparties. call, our earnings have the bank I working with closely last been very As

do Our received to liquidity rebuild our we our and look decisive is monetize and actions reduce debt critical. been by have assets, credibility earnings. new to increase counterparties business to Maintaining We lenders. bank well continued as their support, seek with forward

turn to overview our to like would an I Now, of portfolio.

said, we our very tenants. are is for and no There situation Every is borrowers I've As pandemic-related and closely unique. playbook working solutions. sponsor with asset

borrowers Allow expected is interest details been some paid. for the interest excludes to cash a reserves, on some as existing figure loan form and On were PIK July, loans to as partial However, equity. out cash key of collection of come this, their some a collections company support to maintain is loans in where XX% me of This frequent our Of some of required payments their loans. have there loan basis, total communication. which provide portfolio. well modification have pocket

we XX% inclusive the and of quarter July. owned our real second throughout rent have experienced Turning of collections now assets, non-strategic, legacy to estate

Los also to current pay note has and tenants borrowings like for project unable This our million. $XX costs unpaid during The million. preferred on loan rent time the CLNC development real due incurred $XXX combined mezzanine were experienced that last Separately, that the balance to since and I our our construction also this would a several delays. of overruns Angeles that loan to a has pleased totals previously since of and on CLNC's The share write-down current. a placed quarter. principal development to this on construction are level was on reporting, both investment We is quarter come have mixed-use all estate. equity highlight write-down owned non-accrual was a loan remains

We considers capital have raise, been including event, foreclose not borrower is effort our the very an possibility senior and lender shortfalls. a anticipated remains could budget the The situation senior the sourced. successful outcome ultimately lender to working third-party closely outside Therefore, scenarios as as with in write-down outside various fluid. well the capital the capital to arrange in fund

progress please on and the our in loan XX-Q. to second provided details refer has information, balance in additional the CLNC Form its For fortifying both sheet. quarter made significant quarter this closing, second first during In quarter

continue At As in and previously forward highly we selective. necessary equity apprised markets both redeploying To stated, April us, to dividend asset near-term and and our capital been lending time, commitment with to this with in transactions flexibility. with associated and loan the are steps to Once were sheet shareholder These liquidity behind new have look COVID-XX uncertainties this initiatives, stay to end, activities. this engaged maintain to of earnings. to we suspension sales the low balance remain protect rebuild along generate weighed against earnings. was reductions in the

be turn would capital, Going on senior forward, Operating redeploy our to Chief like that, call our Witt. over will mortgages. focus as Officer With Andy? I the Andy we to

Andrew Witt

Thank everyone. you, Mike, afternoon good and

$XXX opportunities. liquidity address As are management previously highlighted, of liquidity since Highlights $XXX the to position, million and borrowings increased credit subsequently the to under on as eventual continuing availability $XXX quarter whole warehouse future focus million. from as million million, reporting $XXX have CLNC's asset revolving pressures and including and line and been of build hand COVID-XX, past today. the follows: to liability this of of from our loan and activities has last towards cash on these reduced been lines has shift corporate Outstanding related to

In CLNC accepted of - our investment vehicles $XXX million to on line We end Goldman from up by we quarter of investment interest financing to a million. credit. corporate preferred fully been revolving from portfolio and reduced $XX $XXX lines addition, subsequent CMBS X of Sachs, to repo million non-recourse managed have repaid

book value. of equity proceeds position line end, During of proceeds the sale industrial Subsequent included of the quarter end, to portfolio sales we which million for book portfolio The hotel of million realized asset proceeds. with collateralized and core loan a on proceeds a generating the on $XX for to of reserve. quarter equity one $XX a value assets $XX office of sold included preferred asset discounted preferred gross by CECL we sold million Also, loan X/XX second existing a our million X/XX loss. net quarter, and $XX by portfolio million subsequent $XXX net in net was payoff at million, impaired executed $XX

industrial in to between separately an Additionally, we we agreement an terms both on now portfolio investment expect entered an and to have year-end. agreed which and sell industrial sell of portfolio, another to equity

of exposure non-investment Within the its bonds. investments CMBS core the reduce grade taken securities measured to steps select CRE, has to XX through portfolio, CLNC sale and

XXXX value a advance as has consists loss sales As course exposure present and net the terms of of resulted a QX the was any CMBS $XX reduced rate At million of proceeds maturity $XX rolled recorded of margin carrying CMBS of through financial repo before to loss. of million. The indebtedness and in The throughout reduced date calls our approximately CMBS million. in million, Mike has $XXX sales buffers The has December previously company's of CMBS today these been XX% XX unrealized maintain $XX this portfolio would CMBS a an is stated, we million $XX which meaningfully been XXXX already out million. to and knowing company's the apply. the meaningfully remaining $XXX have from underlying on collateral generated positions approximately

Our the sell plan and securities. is to remaining opportunistically continue portfolio managing

under warehouse portfolio, of On to In or such lenders facilities. collaboratively XX% the advances to the repurchase facilities, our reduce the company the master voluntarily financings side total reduced risk. quarter we work margin by under further of with second continue core approximately million two $XX liability

the are result, outstanding providing for be or of today. company master modifications repurchase agreed before additional holidays or as senior million cover certain margin X-months counter well holiday protections repurchase $XXX calls indebtedness the of XX% triggered. temporary loan periods and or As a Holidays as as of facility possible, providing These $XXX obligations lender million six parties before may months buffers further to buffers.

discretion implement to In addition, broader the the period. to underlying during its covered the borrowers to has negotiate company with modifications loans certain

it and from as the perform at core to managed relates is floors level. CLO continues to LIBOR currently loan benefiting the portfolio, Lastly, the underlying

of portfolio performance managed XX senior and for well course related the and other the for of to payoffs course to provides We the monitor manage ordinary trust address as CLO ordinary COVID-XX as, the events. continue flexibility underlying collateral The loan of loans. introduce collateral to aspect payouts within developments, replacement

of the LNS company. the of only for we $XXX At XX% the LNS undepreciated is X% to million the remainder portfolio. X% turning Now, a book GAAP accounts have of Resolving To monetized value, of the portfolio. or LNS focus or portfolio date, present, net value. total

company costs premium or million and $XX LNS QX, value and today, in During million continues the sales execute gross repayment. $XX a total LNS pursue and resolved to sold of sales portfolio. CLNC after XXXX six million price price transaction and the for above of through net $XX carrying debt sales assets for

impairment co-investments the third-party included investment operating an The of valuations the preferred XXXX $XXX the result of under in the as non-recourse stockholders' which recorded which X of facility. investment and liquidity company's financing transaction represented of Neale sale, rate. portfolio deterioration, interest. on by alongside million additional affiliates accepted $XXX lender ability development liquidity $XX to of million. $XX for to result the estate additional preferred due Neale value. if I provides net for at a resulted Goldman financing million $XX with equity. financing of to bids low Redington same unsecured held of grocery million future investment investment additional to our The corporate As to pay The a finance during net $XX on of carrying Sachs respect financing. advance to $XXX to portfolio a The over financing at approximately cash quarter, of other company results. minimum up rate we return revised in resulted on we down draw and funding, provide real structure With commitments the data minority CLNC's chain. company's remarks. national are generate million million this a accounting interest following second will company's on were also To future received proceeds of up primarily each of million in points. The the approximately in for well the portfolio projects, call XX.X% to on XX% reduction that, its details Chief against financing COVID-XX, financings funds for management leverage a a a includes closing, continuing advance limited any return credit discretion first downs interest preferred company's flows, quarter financing of the The in the investments. and the from our in the The is distribution The and will his as retained portfolio Financial elaborate turn on affiliates a triple to such manager, industrial lease net the of and Officer, now quarter managed

Neale Redington

and you, everyone. afternoon Randy, good Thank

discussing Before an our identifying included balance your few is I'd as well our share tomorrow. information report additional business as property of a earnings. XX-Q our to second to about per as core interest And we that attention available information why includes and most loans share. like we Similar net description finally, supplemental I update quarter has XX-Q. and in GAAP we of will quarter items mezzanine to draw second results. like provide turn Core as our company all $XXX.X and filing details our sheet website. holdings portfolio will to COVID-XX further CLNC million on loans rent provide for our million our to quarter, well of in we our $XXX.X results, also in segments, preferred per each Form Furthermore, Earnings a With in define will equity. our It of or liquidity continue supplemental for reported Form which $X.XX loss to would tables financial and and total hotel provide about impacted underscore report, receipts. our last asset on addition our by how There's be that, loss financial let's $X.XX asset or core July

Excluding The provisions $XX.XX book per book of loan and an $X.X per billion billion losses, company value reported earnings of share. adjustments $XX.XX losses a GAAP million for fair-value per second undepreciated of and $X.XX quarter value realized as share. $XX $X.X of or further core or share

the previously and to interest As XX, prudent unprecedented disclosed, monthly volatility concluded April cash on pandemic, the is due company and of the beginning available the we we to and it the for meets income dividend company's status XXXX. monthly customary year-end best XXXX. market Board conditions being liquidity, April company with arising to future the in The from XX, that suspended REIT the based That distribution company the minimum the said, a considerations. will maintain ending dividends on its evaluate continues monitor taxable period its in as to ensure periods requirements that or conserve

the completed has the new $XX any provided exception to in one by not asset Minnesota. non-performing deployments, of our a support a far XXXX company investment buyer of where company so new acquisition with hotel the senior million terms in In mortgage

Most As certain Mike and $XXX million assets $X.XX substantially now undepreciated share. COVID-XX stands have described, portfolio resulted LA approximately mixed per billion sales and share. Core impairments $XX.XX value the asset or on incremental per or detrimental in development. Andy impact at the use are $X.X losses already book of from

loan of diversified size, carrying geography. largest portfolio loan loan with value loan at on unlevered the segment size end, an Furthermore, million. blended of dollars of average billion is our be with terms $X.X yield the the $XX approximately remains book in Our X.X% and book well to approximately a collateral quarter continues type

approximately balance Moving to of at sheet, total our our June billion stood XX, share assets XXXX. $X.X as

between the liquidity approximately will cash debt of at $XXX quarter The facility ratio revolving source end revolving stands facility. and at use a continue million credit current for and foreseeable to XX% credit of assets our of Our was availability be to under the hand future. liquidity the on our our

the included facility we During in our worth revolver million requirement second from reduction tangible size a $XXX certain terms and the net renegotiated make. repurchases investments type and dividends, these term. and believe with $XXX the will liquidity can that arrangement and million, a reduction terms syndicate bank restrictions business to on our in stock we the We in new manage flexibility need near this of we new us the allow quarter, to

As the of Andy $XXX equity net approximately with credit we downs This proceeds, in arrangement generated million investment the in interests. from of million shareholder mentioned, pay in interest resulted to interest under and corporate a portfolio during $XX underlying non-controlling reallocation completed $XXmillion. a a net transaction non-controlling facility five a quarter, of company financing of non-recourse company's

ratings, to number in assets QX of we risk of concerns because and current approach in QX Turning the given maintaining environment. the ratings COVID-XX increased same are risk we our for a

at the increased compared such, remarks. still end That end COVID-XX. with related concludes As X.X XXXX let's risk up to X.X overall of open second reflecting Operator? our resulting stood And rating questions. the the risk of the at our quarter call at for continuing the prepared from that to uncertainty

Operator

James. from Our Laws is Raymond with first Instructions] Stephen question [Operator

Stephen Laws

a it's Mike, me on accomplished timing Congratulations some a be good two last nonstrategic lumpier from million time I the million some supplements $XXX quarter of you I stick on on there rate, with in in is LNS is QX, decline are that. million a a think while? legacy - job, going lot give difficult identified about some side guys from additionally, do you've than run portfolio, may to things for $XXX we be the on to How QX know three that the color four assets can a like lot. asset million a it the accomplished so around a so think know $XXX that going that, and months, about $XXX left. a I you looks months

Mike Mazzei

continuing one back ability change at just we we become execute the rest, sell looking into context makes joining looking you the on. continues we've not LNS shifted we We're not headway it but we'll five because three if focus, thank just reasonable evaluations but a some sense. very this LNS we're Stephen, could do resolving active smaller purposes, to going it's a like the that at to do with and point, been we've have liquidity six, left quarter to LNS regard We Yes, to see remain nurture to to going With it and reporting that. initiatives getting from or some taken for these ours day, question. it's and an subside. for the on are lot that our that hold overall of seven made a focused we prices, we past it consolidate tail on to portfolio, over it we'll that we'll continue call in have assets the the permits, the That's LNS market standpoint, and may to we'd and market, where of some to portfolio focus to very continue of a focus do not and assets that. it, focus on as nuisance a to on the so a months, reduce

Stephen Laws

switching... then And Right.

Mike Mazzei

Go ahead.

Stephen Laws

going - switching the just portfolio. I to core to was

I dividends, as should way to it the is you positioning balance think sheet the is core has as with side be you'd the watching around things. the but are core reducing that like; a other side portfolio? what new tracking to is certain then it were on Neale it the leverage the and holiday, of getting some it as metric, I liquidity, also far investments the far mentioned as do position metrics best is the what the things the core to What likely on we - metrics watch and asset think sales concentrations, there, there some some regards is limitations know continue

Mike Mazzei

good question. Very is It somewhat dynamic.

sales asset first the hit core side. the just me on let So,

nothing really The was under the that hedge months. realization also and the million active, we CMBS for which for the two out. the whittle to that a and losses such down on $XX the than coming We We'll extended realization transactions really other investments hedges. we to will to we to of CMBS, are securities agreement else wasn't million and accordingly continue $XXX equity each and some work of removed been to would from repo March we XX - exposure it have selective had liquidity going the continue said the down that LNS come unrealized the on the on big contract in somewhat and And one, repo have a there for the took there different motivations - removed motivation and the goal rest CMBS of CMBS or we we losses chunk for we've of sale we are the a a the that of them was portfolio basis. reducing marked forward,

reduce had large preferred a in transacted quarter. three the the a equities as more things the number were The hotel California, it where why a weakest frankly to subsequent With to So, hotel, and rest hotel the weighed and that - there, performed marked had rated less Risk had we we X loans for at sold that targeted something CECL. combination also two about basically there. was the quite a the a And reducing was closed; and really we we've exposure one investments and a during that transacted assets regard for exposure that of we'll one was CEC, reversal CMBS we that it about line rating. we to at of that aren't we preferred product of going and we on forward. just ones securities want were quarter, of as equity really assets looking as CMBS to loan two of We the the be that in looked liquidity our loans pre-COVID

combination So, we buck, there if internal lower to for the some some so you in the in is leverage, will, that internal a there external able of to lower albeit and of with bang but are is raising equity, areas, terms - get were we regard leverage it things against liquidity. leverage, of more saw that

So, and the those which liquidity the to earnings yes, - dynamic is cost you and are so cost go things, a moved book was supplement was was and the CMBS stabilize where much can and earnings it down, and through assets priority some cost sheet, there this cost. that come associated were balance how figure raise and and out with is cost has the value and bit there the gets a but little there some

dynamic, need we we we to in rate equity then we you $X.X these come to see and start visibility return that also quarter us liquidity the balance the and the rebuild of later why and third sitting about get that - through of earnings off And as year so, sales of have will some to you'd a the circa to more to next seeing know we here, dollars that and much in fourth form the how you'll billion redeploying look down then the is, of quarter long-winded large on maybe use to we'll the but liquidity, that liquidity. and somewhat as that if that sheet. do I'm in come assets but so and on when on the and might two so we're it's quarter, liquidity, then doing more that see defend so start progress is put And third any, as earnings which being have reason question be amount able the we

Stephen Laws

You've pressure, to see the predicted exposure. on Last but picture, big I central really and thoughts big the tie investments and less more a the you then on under the your the per is what from macro you CLNC Can as exposure? post thoughts is debt Is way potentially is for a District, markets be your and office district guess, level for attractive it that and more, COVID. about that. around talk other to shifting well, more The the the vertical might office so Business in need of appreciate give question timing square thoughts the down satellite go it or around market Can new Central significant portfolio from office next CLNC your you call employee. portfolio, I please? about love kind even more my color I'd business that offices us got primarily foot discussion and type

Mike Mazzei

exposure We sold very one So, every work, we boundaries, about me issues. COVID asset why do that level, the about watching carefully is MSA, but answer. work for big we the one - us to We give loans CLNC rated hotel knows to thinking thinking CBD risk you let and not of hotel we're asset come certainly five. assets thinking hotel our no and so at about come rating to hence

and You of risk at low. our an RevPAR hotels the assets transitional reasonable or repositioning asset where effect realistic ratings over-riding COVID-XX business whether is on refurbishment an plans, no we this see that because is of asset, and even loans all-time underlying think there albeit but us of or or they're on - the our was or moving transition

exposure have So, comes and that, don't to type really and sits. MSA mind. CBD, it's where that thinking our regardless of affected every our we're looking at We risk asset it any around rankings

York and little But the NOI the it - you quite there that was the self-storage. cases the they on may a frankly, a their may you sites some while on an New is a because see risk in the turn in they may we renew, of increase outside we of trend have given budget. self-storage not have move behind city, up the up, loan lot apartments where little people rating NOI, bit multiple like that leaving in home, with in bit We in we - use higher moved have there a around some City the increased and asset trends some boroughs, resi of was family may see when because leases a are

exposure have we New going active office could suburban nothing also inquiry benefit. on that outside York So, of but Connecticut - yet, some City while in there's

we real do of expression tunnel are larger are trend bridge fine. that's we're acknowledge thinking city, and seeking generally. trend tunnel, that's We want to bridge make leaving of York no for that the of be plea, that So, Governor a was seeing cities to we're saying the back. want the New get I that, and we folks exposure New and and and a yesterday residents in to as York people saw come that's, the a out of

So any that, that trend of outside campus. college also But we city at whether student then, would is it's for we housing, the instance, there. state going say, in anywhere overriding that acknowledge on what's

So, a to need city and on I help what matter the thing that the think us, need a at for the that's we do re-opening and reasons we we are is - to and most the but no state we protect government a end and plan, - to opening re-openings. need jurisdiction regional going plan, where around going the is think what obvious need day we of certainly we're focused vaccine

Stephen Laws

taking portfolio Appreciate Mike. to so and forward continued look are looks the to the certainly updates. of this, those comments guys other side you get like Thanks to action

Operator

with Binner is question from B.Riley. Randy next Our

Randy Binner

at I financing $XXX it, should a the I'll actual down the - what down was the now XQ $XX below you that start call, lot repo with I exposure it million XXXX, is of there in is - is sorry to an I'm million. Did at I detail missed perspective? what guess but if So, is overall apologize. it from just for against so CMBS number say being to exposure CMBS,

Mike Mazzei

I don't know you - Neale, that have number? do

Neale Redington

get that We'll you. for

Mike Mazzei

when it and manageable I'll more The it did CMBS goal in XX there give you down we XX, about we a saw market reduction to substantial three us, much line beginning June that so trades was the become for of regard, value was will items the pricing the toward it end so by May larger was we took of improving. number.

BBB, the based pricing certainly mezzanine - area trading We has loan on a down price we're really hedges CMBS CMBS on duration while on that. has hedges trading improved, AAA and and but correlated stat, were because at quite on almost they an appointment underlying basis, also dollar the things improved, removed frankly, the albeit like weren't and CMBS, higher level the on still delinquencies the the the BB basis all a on anymore the

$XXX the the gotten $XX forward. manageable by much size million, So, trying to down margin million table, that and calls CMBS to taking we or were any repo take we've to down from a we more concerns position going off basically certainly discussions about

Randy Binner

understood. I Okay.

Neale Redington

values for about the CMBS and we're face of Randy $X.XX on describe principal of some just million, $XXX is The you. carrying dollar. details that to for half that the on the on about the

million. $XXX value carrying it, So mentioned, value million the is debt Mike against $XXX we've net gross is so and our as our carrying got repo

Randy Binner

million in of… to I first $XXX the was quantifying equivalent offline. in interested $XXX can the that net So, kind we million and But, take I'm just and the think quarter value carrying that

Mike Mazzei

Yes. think detail. realized that is was some and that loss go that through I can you with converted more unrealized with what had you so And to we can help with loss we in to Randy we

Randy Binner

- the And then on senior question loans. similar of just kind for the

said. just repo $X.X down overall So to your the repo, on think from is - I million, that's what $X.X million you

Mike Mazzei

I $XXX the was about CMBS that the think million the that that I on - $X.X - was pay-down of revolver. Our about on $XXX was balance the about line and repo, was loan reduced $XXX overall down think $XXX net of debt million - of million of million that to from million the

Randy Binner

million, yes. $XXX

Okay.

repo number? loans the is So million that $XXX against

Mike Mazzei

I think exact. $XXX it's be million, $XXX to million

Randy Binner

Okay. Got it. And then...

Mike Mazzei

The million. is next thing $XXX

Randy Binner

of the ranking, - been these but now it quarter? your I Clearly on But median haven't just risk the making risk guess spreadsheet comment first score sheet. rankings, - the in in balance score at a if score than then of higher to higher looking was lot cleaning kind sub is numbers all average in the able put and up the listening is lower progress or I kind in the is or the to your of yet,

Mike Mazzei

in you low backdrop look I the - a persistence. is lower are and just the that COVID of higher occupancies of on the impact to assets commented and hotel there everywhere you something and by certainly just we there extremely thought was modestly what I the three be largely say attempt overall we that act reflection moved of It's generally in reasonably will from think that and accurate and and we're to COVID think,. trying the largely just what was terms threes that is we overall related higher at

for Now, that, and but in most reopening to other those process. all, also want we everyone's and to how of therapeutics, all are that around see change more want that's effectuate we when an a more obvious, welfare plans see economic vaccine will things we to

I opening think performance. have will asset around biggest impact that economic more plan the on

Randy Binner

Okay.

go sorry So ahead shifting - Neale.

Neale Redington

of of mean, is million Sorry and I ratcheted ranked resolved weeks, as just of along pro just to a those point other QX, as to but those subsequent and the loans to are that point, bit. that so Stephen going be away. just it improvements in that risk we've and there of $X.X last done few XXXX subsequent then will will from that will Mike's it's that thing will And that mentioned, the $X.X X/XX because deals has quarter one just Randy. Mike on down as end out the the as up X mentioned, well, expand coming to are $X.X moved as come down forma were I million be three to little it then extent to Mike and were million

Randy Binner

Can one X top buckets. if in just one, if main other maybe came had I buckets, more, it couple just just understood and on correct into there And two of that revolver, much, is I XX the how from we, is then the properties, then out a the financing preferred the break liquidity. how from much

that lies? understand of kind liquidity Just where

Neale Redington

Randy I'm other not on to sure I about $XXX terribly on the then finance, pay we over had can the is the would you're all say answer But that the and it ins hand. had and that if Fed way, but sure one we sales, asking on just of the specifically to that remainder close other the cash million revolver be helpful I'm revolver. downs we then outs, not the base had borrowing because is

think So so there just is a lot might of the that different to I moving remaining. you parts it's on more focus better are components imagine as

Randy Binner

at on The the end quarter? the of $XXX cash hand

Neale Redington

right. That's

Thank Okay, you. there. I'll leave it

Operator

session, have question end are gentlemen, the Mike turn the of time Mazzei to remarks. we the and for I Ladies answer and back and for of call, out now reached will today's call closing

Mike Mazzei

early quarter you us support Thank joining you call. to on third very for you your We for in updating Thank safe. you stay and on look forward and much. today's results Thank our November.

Operator

Thank this may This your lines today's concludes disconnect conference. at your you for time. you participation,