Katie Keenan: So, these were not loan-to-own situations. These are well protected credit situations where we had just created an attractive return profile for that investors were interested in. And because of the duration of the loans in our overall portfolio management strategy is it was something that was attractive to buyers, but also made sense for us. I think more broadly, I think people are looking around for loan to own, but I’m not sure there’s been that much transaction activity in that area. But again, I think overall, there really is an increasing level of, I think, capital looking to deploy as the range of economic outcomes. — seems to be narrowing a bit from the perspective of what’s going on with interest rates and —
Steve DeLaney: Thank you very much.
Operator: And our next question is from Sarah Barcomb with BTIG. Please go ahead ma’am, your line is open.
Sarah Barcomb: Hey everyone. So, I was hoping we could dig into some of the assets on the watchlist. Specifically, I was hoping for a little bit more detail on the Miami office. Just a bit interesting to see that migrate from the three-rated bucket to the five-rated pool. I was just curious what was going on in the ground there? Is it related to insurance or some other issues — so hoping you could speak to that asset?
Katie Keenan: Sure. So on that asset, that’s an older vintage asset and an old fund in one of the few Class B assets in our office portfolio, which is generally 92% Class A. I’d say ultimately, there were some challenges around that asset specifically, but it is small relative to our portfolio, really doesn’t move the needle. And I think big picture, when you look at the overall portfolio, 10% of the portfolio is watch listed or impaired office. And the rest of the portfolio is really performing quite well and producing these earnings, dividend coverage and stable book value the overall portfolio is really mitigating the impact of some of these small pockets of deterioration.
Sarah Barcomb: Okay. And as far as the assets that were already watch listed, but have final maturities this year, I was hoping you could kind of speak to any updates there as well, specifically the Woolworths building and the South Wacker office. There’s also the retail asset in Chicago maturing this year. If you could give any color on those nearest-term maturities in that four-rated group, that would be helpful.
Katie Keenan: Yes. So as I mentioned in my script, we have deals on 80% of our four-rated office at the beginning of assets that were four-rated office at the beginning of the quarter, we ceded in getting deals on 80% of them with our borrowers moving to a more stable place, that’s generally going to look a lot like what I mentioned in the call script, pay down additional equity contribution stabilizing the asset and giving more time for execution. We are seeing good progress in terms of business plan execution on some of our assets. there’s been leasing, we have committed sponsors, which you can see through the equity coming into the deals — and so it really makes sense from our perspective to collect some of that equity in the form of deleveraging, make sure the assets are well capitalized to continue the leasing and giving more time to our sponsors, which are really working these assets.
Sarah Barcomb: Thank you.
Operator: And Jade Rahmani has our next question. Jade is with KBW. Please go ahead, sir. Your line is open.
Jade Rahmani: Thank you very much. I was wondering your thoughts on the following. Given Blackstone’s strength broad platform and BXMT is generally low LTVs and basis, why not consider offering borrowers preferred equity to buy them some relief while giving BXMT economic upside beyond book value and the turnaround, the equity — preferred equity would be considered as total equity by lenders and so it would make refinancing away from BXMT more feasible while providing BXMT and economic participation in any upside. Do you have any thoughts on that?
