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Broadmark Realty Capital (BRMK)

Participants
Nevin Boparai Chief Legal Officer
Jeff Pyatt Chief Executive Officer
David Schneider Chief Financial Officer
Tim Hayes BTIG
Stephen Laws Raymond James
Steve Delaney JMP Securities
Matthew Howlett B. Riley
Call transcript
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Operator

Thank you for standing by. This is the conference operator. Welcome to the Broadmark Realty Capital Second Quarter 2021 Earnings Call.

As a reminder, all participants are in listen only mode, and the conference is being recorded [Operator Instructions]. I would now like to turn the conference over to Nevin Boparai, Chief Legal Officer of Broadmark Realty Capital. ahead. go Please

Nevin Boparai

you Capital's Thank us for today Good Quarter for XXXX Realty Second Earnings Broadmark afternoon. joining Conference Call.

the supplemental detail at www.broadmark.com. In have Investors section is to press Web this the issued addition site our afternoon, available filed in a our package on additional on with results, which release we

As remarks today's on statements. made a forward-looking conference reminder, call may include

not discussed results to any do Forward-looking uncertainties actual future or materially and update subject to of forward-looking undertake cause risks in to statements today. from our those are may that differ events. light We information obligation statements new

For filings. please factors refer the a our this that results, earnings our the to release for company's discussion more to detailed quarter SEC may recent of and affect most

be the call most Broadmark's which in comparable are questions. we call, Schneider. up non-GAAP these This some our after Management and will comments, is David filings. call certain earnings about information to prepared the measures hosted this financial will directly Officer, to Officer, financial More we conference Chief Jeff will and Financial measures reconciliations release by afternoon's contained non-GAAP also make discussing GAAP Chief financial and measures. Pyatt; your Executive open During SEC

over Jeff. Now I'll turn the call to

Jeff Pyatt

to Thank afternoon, overview. market And you, quarter I'll to second of portfolio. results Nevin, This additional quarterly and the and provide our performance and financial then over welcome earnings begin call discussion call. David to detail our loan turn our with on a I'll

largest power the in our $XXX call our demonstrates fundamentals amendments. originations million in since second then In we housing construction up This quarterly generated strength of the the going volume and the and and will public questions. new markets. and your origination lending XXXX open platform of We is our for of quarter,

expanded states Washington, have and XX now in plus geographic operate our footprint We DC.

weighted high of with quality June of by XX.X%. billion secured loans a XXth, average real origination As $X.X loan-to-value of estate our at portfolio consisted

are construction bias geographies types across growth. with multifamily and housing states diversified in high property population a We and with towards single-family

us equity Our market well speed in of midsized local our typical our average that expertise retain as who also requirement to providing to Broadmark's and borrower portfolio We, is that projects, rate quarter of term to fluctuations. perform. allocate capital their steady rate a projects, significant new XX the a It with pivot turn, size our us be across $X.X them loans benefits our stake months. loan portfolio over frequently our small turns average interest which outstanding short benefit in of a reliability borrowers' and million there The At incents means nature from as loan limited allowing have as quickly fixed term that of an as with exposure nimble payoffs was means well we to end, relatively markets. from as and we stream in our fund execution. expert to

winning pressures an should enable Under which time while discipline. from that pricing larger loans decreased environment, to to adjustments has potential a market, projects keeping Underwriting all-in from been exposure a underwriting Having to efficient on be has up project we model made our very volume loans and in more of XX%, yield pool recently of model have allows average observed Leveraging our new the expect and us from our risk of without while of an our respond dynamic As individual XXXX. implemented benefit team's pricing reduced make weighted borrowers potential current high as on we have compromising portfolio percentage expertise, more our opening maintaining and will risk expense our as of environment to our well do able additional larger level we being portfolio grown, perspective, the profile. to amid XX.X% have we effectively. as low. competitive the pricing loans that us of continue March over business XX, the a level competitive that a its the

However, by origination is lending yields. risk in increasing macro underwriting outstrip remind disciplined wider but and loan immediate XXXX since to supply. borrowers expect still family model opportunity utilizing the and with second our With long collateral. XXXXs. the today's us Single quarter the demonstrated environment, below far and world our and a one. accretively our increased dynamic range like grow still but better This construction pool a I our leveraging enhance yet nearly is of this demand this new to term an have source allowed the further Amid uncertainty starts levels of seen approach, stable housing in better every the year both business entrants the volume continues adjusted pricing into no as we in at approach to credit new We to capital would housing new regard for to there space, more Broadmark. borrowers that than remained of

the to where housing X.X an relocate rates, in strong are of states Freddie arrangements, to and amount to a fundamental housing according the current household units of growth upsize Mac working the to balance we deficit report, still to cycle that the shift come. operate. it with With mortgage early still innings clear high or recent growth move, very the million free in Americans current we're low enormous of seems sheets With to

for flows through of continue demand construction, our demographic trends All these new to drive loans. which as

this within compete of operate only has fraction of lack our expertise Broadmark rising to typically small, the over with encouraged order we years. conversations are borrowers, significant the our achieve that to to growth. past And because scale a XX and capture small market have the builders need have moderate able addition, said, and that started Lumber we high we into supply able a the we in nor not costs, size, labor where to cost are generally us by unsophisticated large projects modify and improvement disruptions cost big to market banks issues lenders signs lending built translate nature of fragmented building our and highly In major supply In been maturity the to some in of in of can them date. to mitigate fund, default. of the materials. prices place delays That requiring the or loans chain of

underwriting conditions and all to inputs into during process. We take account our continue monitor these the

process duration we housing opportunity remain advantage. and we that the a and prospects Furthermore, the provide markets have and growth growth created with to risk formidable ahead, in exposure platform, excited competitive go we superior into provide best Broadmark's protection we our LTVs believe traditional short of decades about the our states local knowledge, underwriting Broadmark. Looking construction versus experience homebuilders market landlords. With and for low loans attractive set relationships, and at deep combined borrower our our that differentiated high

As that with always, we to interest. aligned our it David and shareholders' that, we remind turn to you I'll over managed review fellow are With internally financials. fully the

David Schneider

and Thanks, Jeff, afternoon, good everyone.

detailed Our on X presentation. our of earnings Slide operating results are

reflects loans of second million. and per share. revenue XXXX, $XX.X Adjusting common we per diluted quarter the basis, $X.XX net was or approximately the for our a common the second this GAAP a of million costs quarter $X.XX $XX.X share. were million distributable of On per income $XX.X other income second total and $X.X fee net nonrecurring of and diluted for the impact on income quarter noncash Interest income million. million our $XX.X in earnings items, was share of reported For

side, expense continue the functions in-house. on G&A we bringing On by reduction our to efforts additional corporate execute

vary based volumes, internalization our result Page had we quarter-to-quarter XXXX. million. continues And public rate which million in together timing efforts. below to million origination closings. reduction volume may volumes compensation expenses year-over-year we presentation, quarter, second of from in cash the since our as expense of be highest $X.X million reiterate quarter the $X.X of $X.X presented that $X.X We are This expecting quarter, With on $XXX originations further in and $X totaled amendments the to earnings of cash G&A the For loan million origination million, totaling on expense in million, are the run of and second $X.X going XX of a to XXXX. a regard

our Now sheet. to turning balance

in under event balances, capital As on undrawn existing raise the end by issue cash on available fully credit our by we be we quarter. earnings and million cash and capital in the near is as In we approximately target cash did that presentation, debt the to capacity shares continue of $XXX fully as long-term We facility, our the only revolving the we our for cheapest $XXX deploying reduced to $XXX we we facility, In of our our excess ATM additional we've XXth. Slide no the detailed of Broadmark million in shareholders. are shareholders We million our that view aligned form with us. to expect it second existing remain had second reduce any focus June to future, our from of not run we rate the quarter credit the quarter, interest the when with XX believe balance we and continued cash outstanding $XX the million of which on capital as added third given of cash. and interest our

will overall assessing multiple environment. not in we added we attractively Subsequent make support interest sources more announced facility, amount in as fortress retirement even capital a future the including of of of believe change. our quarter low said our today's us capital continue REIT. and to private we a modest been always this approach our As priced we when of which help our sheet But Maintaining lower this part and marketplace. year it a the long-term balance DNA to credit to growth competitive will we has of cost plan end, will last is very debt, potentially rate

by and impact our the a the the therefore, is private million. the third The quarter, for to will have equal value not Broadmark earnings. carrying is repurchase price $XX loan expected approximately REIT held loan's repurchase participation During significant on to

currently offer that are private evaluating opportunity that loan existing type new is business. We would and a investment finance to to the vehicle to adjacent look Broadmark's complementary the

management. portfolio to Turning

XX value. representing default, June million contractual in of portfolio XXth, or total XX.X% the by total we of had commitments loans $XXX As in

$XX with properties five Additionally, in foreclosed million we total have commitment.

on no second quarter, for a one new in $XX total and million and default defaults. two cured of loan foreclosed the we loans During had

on As a have continue nonaccrual earnings. to reminder, drag status in a loans

For drag the the $X.XX was approximately second quarter, share. earnings per

As had year over insight we for loans certain into provide a status default management our additional wanted now, we process. in default have to

which buckets, shareholder believe often takes to is management call is process and defaults, the defaults, by and our capital two between start defaults into I line that Let two our helpful me time. although, it resolution differ the highlighting we preserving with as those goal primary that standard touch can categories. time high categorize

for our to defaults, with about to remaining working of our standard construction pool, In as quickly project like have cases, the do we seen in account for or as and is current nonaccrual and focus some For construction see shortages. complete completion sale thirds recent which and any work the two we material borrower from not would raw delays refinancing. the borrowers labor to resulting position

However, most to over we of outcome be slightly and as line. time that interest expect standard we will continue defaults economic these fees result capture for a our longer common a Broadmark positive the

project due comprising value, to For reduced third based high about delays. borrower one touch or been on has equity cost overruns defaults, often

the interest to of to sometimes on resolution default, aligned maximizing interest diverge of proceeds are themselves. and While borrowers upon quick borrower's our Broadmark such typically counter goal as a focus entering origination, at runs its

we legal in down defaults moratoria although default optimal, to resolved is Time through to we For some foreclosure delays additional within and prolongs work us these rates. level to often not two necessary quarters while including for defaults, continuing court losses, And avoid it as have result historical our back have of system time certain types will principal take expect it states. our bring the channels, been resolution a of to line. which COVID-related lines

once, progress of are the shareholders. Ultimately, is take. to us meaningful left for it outcomes to be maximizing continue management history But our continue all the in we'll clearing of put that is to effort come interest a not we in done the and to will strategic lot and of right through While at to approach time in achieve defaults. value best have work a there

Finally, continued two through update on four I in provide the defaults. for one, that we outlined an capital deployed principles like to of resolution growth quarters. the our would currently the on maximize Number past earnings

to defaults reduced loan now maximum production $XX large the reduced with we commercial Number had of million on of capital defaults. and in balance of of deployment capital million credit million retirement by second We resolution $XXX the significant progress run million. defaults $XX to QX. our with expect by associated sufficient We made balance existing two, During operating quarter, and cash with at deploy QX loan sheet by no multiple approximately million new through Number REIT be plan place. of towards the cash sources. end and of total private facility various available rate $XX ensure the on $XXX for deployment three, the sheet

new capital accretive evaluating earnings We focus a of to cost sources currently available growth. and shareholders. four, available average power the on the with our Number are weighted for lowest identify most of capital the and opportunities for company

into are evaluating of to earnings our and new construction loans long are states complementary enable term the We significant growth. existing expanding that that process products in will

turn will I for call Jeff a comments. the few to Now back closing

Jeff Pyatt

Thank you, David.

performance to cleaning pleased do and build on has first of of we with and look expect that defaults, process year. the as we the more several up on efforts are to balance have We discussed, to our quarters. half David as work the in move through take we Clearly, those XXXX

However, housing our all we states prepared this new place near-term need and to well tools unparalleled offer and construction. protections drivers to powerful our continue believe risk portfolio structure access market and construction in we believe positioned are growing an into an to in and on the advantageous we top completes On that, in capital loans. our of we finance loan long-term expansion markets, our to we secular the with have new growth with remarks. think we returns niche on attractive superior way capitalize This and

up the now questions. will open for We Operator? line

Operator

question BTIG. Our Instructions] from first of Hayes comes [Operator Tim

Tim Hayes

-- one property. on there, just for just David, Jeff, My first maybe the REO new or the

it's just about a it -- million like a seems could you asset. If big $XX one,

assume expecting you collateral -- guys of idea the I there? it to us commercial Can there, for being commercial you it's with construction an are So that time type complete resolution and some asset. line of give just how close is the

David Schneider

quarter So that the it. in was the REO we about complete. We construction hotel a It's had good pretty during near feel Moab.

where of I probably construction the to Great to us. that's most think to I commit to and think property and then it the is lines, something that we we to probably we don't probably just six have piece defaults sale that a the can I avoiding finish times, whether could good incomplete benefits position over really collateral time based of look have of months, want -- three history closer but or really any or have for three taking appropriate for off reserve months for refinancing. borrower

well So the we a expect once complete. did to just really see construction in we one as continue for that hotel COVID, throughout sense and in this case, that to it is this about foreclosure increases really new, made call it, posh good we'll neighborhood feel and

good So about that. pretty we feel

Tim Hayes

David, so I that down… and remind interest were just me, a you the process went guess, noticed default, you quarter, full into last from of I maturity And this quarter receiving can to quarter entered asset foreclosure is interest it, this or just you

David Schneider

impact an it long wasn't won't we as in REO, default So sits has on been it for some interest. REO. Obviously, on be accrue will not it. It There accruing to going continue from income in this time. to loan interest as

is a on get that's capital really going the we're something think now. is earning again. have one we it, definitely the like start something and REOs, about we can this out quick right quicker of we get we and that -- possibility resolution to biggest so I for that The focus So can think paid, as this interest redeploy

Tim Hayes

just a then like also you shared they at two those this quarter, that construction imagine were assets looked And the were two They on there. complete bigger I were point. this little deals

nature? properties, about your completed the for guess to in curing two? borrowers pay to are those of have for to So just is getting defaults, were I XX% Because default so And that about you commercial just back. able trying of you subset how I'm in go understand, your what also still those hurdle

David Schneider

was loan payoff, a we collateral one an was resolutions, larger one And it. little that had we smaller the a brought then additional The bit current through payoff. and a added to actually amendment

was, that is So were I we believe, the that. resume feel That were good one performing nature. homes, interest They about both one residential we to able and accruing convert on to in town that.

Tim Hayes

the the just in one the in And queue, back here. me to I'll and REIT about just more hop decision bring private then for

maybe about from the anything under it trying that a a than decision, can kind can also to us else? If different nature the little the looks in talk environment again, to if raising was see a how maybe for future And you structured like of or or kind if nature of expect time Just understand, and maybe reflected later we something of it more strategy. could just capital different just previously? bit bit a just you what we little mandate then that the guys at that from the but type decision of

David Schneider

you and give let want add a I'll go it. quick me to there's in Jeff, it if then -- other to And jump things

to only not tail through year. public to viewed towards hit the we us registration was we got So the COVID down, I as to very in Tim, raise time but and happen to then our think release, We shelf immediately COVID, for was difficult the it that get I waited of capital to really, a the actually structure this helpful. also press source would but go get -- under was incredibly end which we work say, It as the alluded it reason and in. capital

So it of served provider. as capital a its purpose terms in

with almost of unlimited hold that strain raise on different was capital of sources -- Now we like and seems up various a pipeline company to not a at are public put capital, the had ability a the we there it investors really pipeline times. to

us, an as off on were raise And on we're capital. sheet, and really position cash of So it balance needed capital. focused any the we It we capital. sources for focused the deploying was much inability where competing wasn't to a in primarily,

offering our not and matter to the that and we is a it's REIT. find loans private back for construction product beyond us offering. I currently forced back to a better investors, about think one to in of private borrowers be to expanding is there of still think We the a it how construction whether taking think just manner a loan Broadmark a step answer right our think the as amount step step really complementing REIT offered that very what can first position structure interest I are And just restructuring that we and -- by think So interested, of question great and take there's we private about our of that's we and is a and that. complementary be should us can the complementary for is a where, those place it products hopefully, could product from attractive

and historically so love competing really that's and question take a potentially just rather never products just see we focus we a structure could to similar purely source it that would it's hard that So additive. answering to look our haven't offered format at of borrowers capital how construction of a and what it's the non-participation in that see adjacent

Tim Hayes

asset color about more up, these you Q&A, guys things a shape analysts. could I give on makes little us you you to other what to the for at want I evaluating Well, you sense, to the be mean, talked that But types. bring and leave mean all I hate this asked what since it some in just time though, so can complementary point? hog I that are bit take the

David Schneider

typically about a different we've out I to collateral talked some We there's whether look construction, opportunistic not are at of loans that that's different similar that something don't mean I piece products think there. or nice are that's public. we that think

like feel make to a product So offer I time that returns and finalizing think spend there's kind borrowers -- that we vehicle need that, but probably of little a bit happy. currently our could there's that we products a private multiple good very everybody for think we more attractive

Operator

comes James. question next Raymond from Stephen of Our Laws

Stephen Laws

maybe would Where as to get? you of talk point kind as footprint the to origination a to far that I pipeline Can portfolio. Jeff, steady the want picture road -- that kind of the kind down maybe in But talked state something channel. far question where the with start the that matching what you kind the goal origination you like from of mentioned you the you is continuing the funnels with about of where state? growth Atlantic that a of see outlook to few expansion growth now Kind a while of to we've you the down have benefiting bigger really is reach a and manner number today? sheet see what's shutting as reach Southeast to and of new and for from maybe down was, years little the private start repayments, coupled and size a balance about the REIT positioned portfolio as it growth with in the natural point you all

Jeff Pyatt

and Well, The have we various carefully is the question. Stephen, the capital have past. we answer forms me always growing you fact to in as that access short quickly company good the ask we that mentioned can. this of we as keep never David want to

into expanded new states. We have some

into state great we're to doing it's want go been a have cautious don't We a We've we have we got loan don't we a there. to because are what that and do, others very some looking we at able as always so quarter. been just know

we for just we as and to safely as loans, doesn't housing, hard which that to just or question. as we'll just based think year as can't we tried quickly your the I want like, product. dollars what we as said, keep this percent X the hard, we'll you as demand our or continue as as answer But tell the can. grow too and I pushing X on by demand And really grow X I always markets well for can, look have

Stephen Laws

the volumes. And as to opposed certainly side the focus underwriting credit is on

accounting about want David, as over income a on considerations that maybe to follow REIT. the comes we $XX third you the any the accounting fee about there about the we give million up as to some assets of Can need fee think IPO, to side from know question on think I So with to quarter private around we over with onetime around anything the might that transferred the that the line. or I go had income into of results. any the need us well an think idea expenses

David Schneider

income. obviously XX months, I I interest think going highlight all and or fee material months, by unamortized for income status. of release, an for we pickup real been XX XX accrual the in loans now, are maturity. to to lot as would -- a outstanding performing or on these that they remaining it. of press so loans no most mentioned There's have of the We'll impact go the until status not be months from a see

flow the through over $X.XX bit Marginal financial interest of significant statements. see PubCo would the quarters, income. see purely based two a maybe that pickup, last just we'll little expenses, you on So nothing

Operator

Securities. comes question of Delaney from next Our Steve JMP

Steve Delaney

COVID focus the that's profile. your improving past over stable for on Congrats sure I to know hit. been the year since credit

as increase are But collateral that Just the conditions a type normal of of commitment, that in Just one expanding? a, loan project place? are to is a XX, understand amend normally the in of like a had if getting loan I at what know that scope an on and is a in million your to don't or deck or whether it additional total thing. type you looking commitments. more your you amendment, refer was one-off of I -- what $XX thing multiple. guess, regard or Is you you when Slide increase,

Jeff Pyatt

a can performing. detail. we pool don't helps and do succeed. to this But go it it loan of go If on do and quickly. extend Steve, a go default, that. then lending default. get into underlying can deed happy goes is David, asset just borrower first that to we're needs them collateral within diversified get loan Well, into a then trust it bring keep can nonaccrual. total can we that you into the gives parameters more takeaway into think, underlying nice probably with But to helps be the I nonaccrual, some it If will if loan it Candidly, us we it to at and look a better some then it and back more That under collateral out them our from needs

Steve Delaney

something place borrower. financing is a of had win-win sense a towards? So just relationship. it core the a can that a in And and Is it's the create a like it's way you've working for performing you're -- kind healthy. of sounds you kind got a -- of what that of It's that you

Jeff Pyatt

were bargain. borrowers. happy repeat but only of the We them I holding quarter borrowers our they're Remember, if XX% keep to up like this of end Yes. think their

Steve Delaney

de of to loan. foreclose. appear had you would a David, to last was I that's know And minimis, it loss loan for you defense, your $XX,XXX. your provision But line only foreclose incremental but had on

impaired, down would appear at without had that course, been made you a go it So REO, where that could of which, hit. a into loan interpreting go already straight your I you written in has fair to to correctly? Am that level value, to be decision that additional when material

David Schneider

it. we this principal REO loss we major the principal, on didn't any had quarter, So any have

think we to of about So CECL have it our is potential some was our already income. losses been one GAAP But of captured portfolio, in any taken care have of. still we default benefits I that's the as net And think chop. already wood

allowance think XX.X that. was I in of X/XX. our million potentially we to just as hope come If under anything,

So foreclosures. impact future of material see wouldn't you any

Steve Delaney

caught of understand have noticed this you're in statement, your eye. but adjustment $XXX,XXX. small kind thing the new And have And SPAC company a just to expenses. and your certainly, for going reconciliation my something, I then or distributable to public merger, is I income This isn't you but post-IPO

Now expect course item significantly run de pretty is about from that something had And that the it is that should on down minimis and first we going what forward? to become in you a the you've that quarter.

David Schneider

be our do that work just some the CECL I for to the some you’ll think CD&A we with to implementation was will this quarter, cleanup see This annual really had report. our and one that. last of up specifically come of

kind So about I the our I internalization in million cash. in think keep our zero good drop prepared little key talked about explanations, though, about And from they bring some remarks a I $X.X We $X bit we've think year-over-year down pretty and and we nonrecurring continuing I comp to expecting and the that be think but onetime G&A feel, just the made. of And that hopefully things. expenses. in you'll reflects periods. see the know onetime to try to million hires of future we out were

feel pretty expenses are at. continuing about to good our be we So consistent where

Operator

comes Howlett question from next B. Our of Riley. Matthew

Matthew Howlett

Can end companies just debt lever look -- in I it know what the you terms be go of some discussed the be you But about term you can be year, give secured it if I new term would potential and say. -- anything would limited us debt, you're mean apologize -- would give debt at, I the you can late, this towards your of I've on you're what you terms preferred, could you capital, the would point. already. jumped type on us But would can I in to at just what seen on would thinking you us have? debt it give of given over in you how position helpful putting company? X:X So rate? it be preferred

David Schneider

think Xa or the I So priorities number or coupon. two are the really priority one and X top

term next over quarters average to over making of we're and a bring down several cost So effort long conscious the capital. weighted our the

say to it's our competitive say much rates from range coupon specific there our lower not like very for get perspective. equity. we rate I'd than and we cost So would at there's out the of feel but dividend a I'm liberty

I we So good feel think that. about

focus, we million. and then the nice that a by cash is deploy reached of We’ve amounts focus level. other quickly. dropped balance source terms We getting In the $XX can our

million. of net that can quarters. and June in continue had of come production in $XX number to in net of started we given we expect up future We payoffs in to see So probably quarters future think kind deployment the increase that

two a think items drag make to sure and coupon we're top have think that's I is that two sizing, for. something that of work and looking on big, have possibly focus interest not on. it real those competitive And expense things and So would most kind going it's within sit is to cash the and there's that we too we're

covenants coupon. perspective, that's we preferred cheap from a impact options, have that bonds there, facility that as as as would the think in There's well and whether flexibility around undrawn facility fit fit give not multiple route there. of both sizing I our a as our well that products us is credit are in all senior that credit unsecured within kinds

Matthew Howlett

one mean guess equity, over sizing But million assuming the today, that I I to I mean or question, the important. how ultimately, preferred dollar guess a the up that? today, what think in you debt I of do you ultimately much -- I get put mean billion. I you could equity terms your ultimately just with against a could I'm just realize billion leverage… of snapshot from And is is

David Schneider

would -- credit covenants a mean that's have XX% we facility, the in term, ratio. I I our say, debt-to-equity there's do immediate

never think But to even take going $XXX a take we waver for the is million perspective, a having key from. about capital the And to needs then of would hurdle. debt. that as potentially focus million, that's while And of a $XXX to going to But we'd initial relative we're always peers. that think look level kind that's leverage, start distinction us even be to a that from getting modest I think our think through back. that to I that's So really, it's get and I

mentioned conscious To I think will structure. where comments I very and in big our that's to to get approaching be it capital consider our that is step this even think we a would and prepared I modestly in point changes our DNA.

Matthew Howlett

in what leverage portfolio I tell operating mean much significantly, the us do forward if you you our growth can -- G&A of terms a have change would is do And does G&A going profile. in and terms on question your have? It to reductions, of just in last there how growing expense level end portfolio terms where is do you the you of think you add? up

David Schneider

think marginal. I pretty

sales We a our we're we've significantly make underwriters sure I different of regions perspective. have think I good into went and think I and public, to from obviously But expense think expanding since year to we really don't states. and a two move hiring the of pretty in now. to cash needle as space bit the did the first much that going increased little think about we this in it's enough folks we headcount a quarters

the current a could and we And our multiple I it's think uptick grow scalable. our think in that's incredibly platform portfolio significant I recognize times beauty you is of expenses. wouldn't

Operator

would concludes back conference the turn management question-and-answer to remarks. session. for I to the closing This like any over

Jeff Pyatt

you. Thank

say from support on forward Alliance for I seeing breast that and If decade, of of was assistant a Realty to commitment released be Capital. today I sharp of leg she being has today's Peggy to employee have medical long begin for and Peggy important Peggy wish over you Cancer Seattle with journey. a we Today, you and ongoing your role Thank I've and could leave She look I interacted acknowledge played Broadmark and year's an so company. very Peggy minutes, to in of sometimes the couple for did early metastatic with who Peggy's wanted is joining sure family cancer. her to been on job Armstrong to hospice and on competence, has this all a me struggle months you Hospital your If Broadmark awry several focus would our now, humor. has served to for you personally you and you’d next my quarter. my encountered Peggy well publicly as Care it. last most listening to all care. company a with indulge next is appreciate call. the contribution likely

Operator

This today's conference call. concludes

and for a You Thanks may disconnect your pleasant have participating lines. day.