And so, we find having that liquidity as well as low leverage balance sheet to be very, very powerful in managing, the outcomes of our underperforming assets. When you weigh that against, again, making new originations, buying back shares, those are all competing uses of capital, for sure. And I think the point you make is, is an excellent one. The fourth use, as you mentioned, is paying out dividends. In evaluating again, the uses of capital, I think our Board has made it very clear that we believe that our shareholders, really do want and expect, and deserve regular predictable, recurring cash dividends. And so as long as we’re able to, we believe, earn those dividends through our operations. We believe it is important to maintain that dividend.
Right now, the good news is that we’re not trying to compete for dollars, meaning that we don’t have to choose only one priority or two priority I think we can maintain multiple priorities. And that’s why we’ll continue to use cash in low leverage to make sure that again, we have tremendous flexibility and working through our underperforming assets, that we will continue to pay our regular and supplemental dividends and cash on time. We will continue to look for new origination opportunities. And we believe we have sufficient capital to consider share buybacks. So to us, it’s not really evaluating one versus the other so much. It’s somewhat matter of timing. But the good news is, is given how much cash and low leverage we have, I think we can accommodate more than one priority.
Rick Shane: Got it, okay. I hear – what you’re saying. I guess, just empirically, it seems to me that the surety of return from the buyback and the magnitude of that return in the context of the others. And again, I’m not questioning the – appropriateness of the reserve. And I know you guys believe in that, when you sort of connect all that, it just feels like that investment seems to really stand out versus the other options?
Tae-Sik Yoon: We couldn’t agree with you more and we’re hoping that others hear you as well. We do think that is a great opportunity to buyback our shares, we would agree.
Rick Shane: Okay, got it. Thank you, Tae-Sik.
Tae-Sik Yoon: Thank you, Rick.
Operator: The next question comes from Sarah Barcomb with BTIG. Please proceed.
Sarah Barcomb: Hi, everyone. Thanks for taking the questions. I just want to dig in on a couple specific assets on the balance sheet here. So I saw that after quarter end in April, there was a defaults resulting from one of your sponsors paying partial interest. And because that’s on – that was on a multifamily property in Washington, I believe, and given that sector is typically more defensive, not that we haven’t seen issues there. Could you talk about what was happening on the ground there that led to what I’m assuming was lower debt service or what resulted in that default?
Tae-Sik Yoon: Yes, absolutely. Thanks for the question, Sarah. Really a situation in which the increase in rates has caused some debt service stress on what’s otherwise a performing asset. So as we get to the latter innings with that asset, I would think about the situation there it’s just a bridge to a sale, and as you’re referencing the capital markets, and the equity markets as well, are still fairly favorable for multifamily assets. So we did not take a reserve against that despite the debt serviceness. So clearly, the implication there is we feel good about our bases relative to the value there.
Sarah Barcomb: Okay. And did they have an interest rate cap in place?
Tae-Sik Yoon: No, they did not.
