Richard Mack: Yes, if you don’t mind. Thank you. So Jade, I think that it’s also important to remember that a lot of our origination in these markets happened post the CLO market backup. And so while valuations were still high, we were able to make these loans at pretty wide spreads and at conservative LTVs. And as we look at it with very little good news happening, we really like both what we’re getting paid and our basis in these assets. There’s, you know, unfortunately right now the, for the borrowers, they’re moving from negative leverage to positive leverage, in most cases as they are marking to market and certainly as they renovate. But at our basis, we have a pretty significant amount of positive leverage to our position, even in an elevated environment.
And so, yes, there is softness because of increased growth, but I think I’d still rather be in the high growth markets because we have seen construction starts fall off a cliff. And yes, we’re delivering a lot in those markets, but I think you’re going to have another surge in rent growth as we absorb a lot of the projects that are being completed now.
Jade Rahmani: Thank you. With the commercial mortgage REITs and even some CMBS loans, there seems to be a phenomenon developing from an outsider’s perspective of borrower strategic defaults. And one of your peers used language, they said, you know, the borrower’s acting in non-economic ways and some of some of the credit sub-performance has caught people off guard. Are you seeing borrowers strategically default as a means to extract concessions from lenders because they know many lenders are caught, you know, in a, between a rock and a hard place, they have loans funded on credit facilities that need to maintain coverage and they may not be able to issue CLOs as well. So could you just comment on that phenomenon?
Priyanka Garg: Hey, Jade, it’s Priyanka. I’ll start and then I’ll hand it over to Richard. Just in terms of the strategic default, I think that because of how we structure our loans, we actually have not, have not seen that because we have active cash management in place. So all the dollars that are coming in the door, we’re sort of — we’re able to pay debt service to ourselves first. So there’s not this ability of borrowers to sort of hold back cash and say there’s going to be a default, and then, try to use that as a negotiating tactic. So we’ve not seen that in our portfolio to date. So, and then Richard, I’m sure you’ll want to answer more broadly there.
Richard Mack: Yes. I mean, look, we’re we — that strategy doesn’t work that well with us. Our borrowers perceive that we’re not afraid to take the keys. And so we don’t see this a lot and forgive me for saying it that way, but I think it’s important that we — that borrowers understand that we’re certainly in almost all the asset classes that we’re involved in. And we’re big owner operator developers and we want to work with the borrower to help them succeed. But if they’re being opportunistic with us, we’ll be opportunistic with them.
Operator: Our next question is from Chris Muller from JMP Securities.
Chris Muller: I’m on for Steve today. So I just wanted to hit on originations, which slowed in the quarter and sounds like it’s due to macro conditions and you guys just being cautious. So I just wanted to know how you guys are thinking about portfolio growth in 2023. Isn’t net growth a reasonable expectation this year? Or will it be more of a flat asset management type here?
