Tae-Sik Yoon: Sure, good morning, Rick. Thanks for the question. The 2021 CLO does not have a recycling period. So as loans pay off in that CLO, you will see the balance go down. And then one of the reasons, you’ll see a slightly elevated cost of funding is again, you’re amortizing certain costs over a smaller capital base. A 2017 CLO that you referred to our FL3 CLO that is one that does have a replenishment feature that is one that we completed now six years ago with a single investor holding all of the investment – graded certificate. And what we have done is we have worked very carefully and closely with the single investor to basically renew this revolving period. So it’s been very, very beneficial to ACRE to have that in place and have, what has now turned out to be a six-year replenishment period, which is terrific.
One of the other things to note in FL3 is that the pricing is at LIBOR plus 175. And so, when loans roll off, and we make a new loan replacement today, the cost of our liability is not going to be so called mark to today’s rate. So, we’ll enjoy what we think is going to be a much wider net interest margin as existing loans roll off, and we’re able to replace it with higher margin loans. We’ll be able to enjoy there for a wider net interest margin on new loans that we put in there. Hope that answers your question.
Rick Shane: It is and just so we know – have there been buy outs from the FL4 of defaulted loans?
Tae-Sik Yoon: No, these are just natural majorities.
Rick Shane: Excellent, thank you. So the second topic is this look, I think you guys have on a relative basis been conservative in terms of your reserves, you’ve been proactive in terms of managing properties transparent and what you have said to us on a quarterly basis, you’re running with low leverage the thing that – I’m having a hard time connecting is the dividend policy and reiterating that today versus buying back shares, implicitly the markets, putting a 15 plus percent cumulative default rate implicitly in your stock price? Your reserves are conservative and there’s a huge gap between those two stocks yielding 18%, if you guys could, if you saw an investment where it was yielding that much because you felt the market was mispricing the credit risk. You would make that investment all day. I just don’t understand the – disconnect between the dividend policy and the buyback?
Tae-Sik Yoon: Sure, great question, Rick. And I’ll start and then hopefully Bryan will add to my thoughts. No, it’s an excellent point. As we do have a buyback program in place and it is certainly something we evaluate at all times. We’re always evaluating how much cash we want to maintain on the balance sheet. So that again, we can have favorable outcomes on some of our underperforming loans. So just to give you an example there, the fact that we’re less leveraged than many of our peers, along with the cash gives us the flexibility to, if we wanted to buy out a loan out of a CLO. It gives us the ability to work with our warehouse lenders, so that we can buy more time to resolve a senior loan. It gives us tremendous bargaining strength, and we’re talking to borrowers about what we are or aren’t willing to do.
