It’s still moving in the right direction, but it is a very, very slow move in the right direction. And so, I would say overall, we are fairly bullish on the sector. And I think more importantly, we are bullish on the credits that we are writing in the sector because a lot of them are generally lower leveraged loans that are either acquisition loans or cash in refis. For example, I think one of the loans that we originated in Q4 was like a 35% LTV in Tampa, Florida, great institutional sponsor. We had a great mezz loan subordinate to us, and we just wrote a very, very low leverage hotel loan. So, again, pretty positive on the sector and even more positive on the lower leverage credits that we have been writing.
Matthew Erdner: That’s helpful. Thanks for that. And then can you talk about conduit again? I kind of missed the numbers that you threw out there. And then if any conduit deals were done in 4Q, can you tell me what that was? Thanks.
Michael Comparato: Jerry, do you have the Q4 revenue number? Well, I will give Jerry a second to look that up if he doesn’t know it. But I had mentioned in the remarks that we anticipate $3 million of revenue, approximately $3 million of revenue in Q1 of ‘24. And we have seen a real pickup in demand for that product right now. So, again, cautiously optimistic that 2024 could be the best year we have had in a few years as it pertains to conduit revenue.
Matthew Erdner: Thank you.
Michael Comparato: Jerry, I don’t know if you had that Q4 revenue number or not?
Jerry Baglien: I will mention in a second. Let me just pull it up.
Richard Byrne: Operator, Alan, any more questions?
Operator: Certainly, our next question comes from Steve Delaney of Citizens JMP. Please go ahead.
Steve Delaney: Alright. Thank you. Good morning everyone and congratulations on a strong year. We look at the balance sheet at year-end with $350 million of cash, leverage is 2.3x. 3.0x is kind of a standard, I guess we call it. I mean when you think about 2024, it looks like you are poised for portfolio growth if you want it, and you can find it. So, I guess compared to about $800 million in new originations and a $5 billion portfolio, what might those numbers look like in 2024? Thanks.
Richard Byrne: Steve, maybe I will start off, and then Mike can give some more detail.
Steve Delaney: Hey Rich.
Richard Byrne: You are right to point out, I would almost rephrase that is like the untapped earnings power that we have, I mean we have over $300 million of cash. Our Walgreens Holdings alone, which are kind of earning barely even cash, that’s another $90 million of equity that’s tied up in those properties that we could redeploy. As you pointed out, our leverage is low. So, we have got – and we are in this nice position. I know most of the space is because of the rise in interest rates that were over covering our dividend, even though we are not even close to fully deployed. I think the difference for us is that we are not building a war chest. You have seen, like you said, throughout the year, we have originated pretty consistently every quarter.
We are not building a – I don’t know what the word is, war chest or reserve fund for bailing out of maybe some outside tail risk. I think just as you have heard from the nature of our portfolio, we feel relatively good. And I understand the market is choppy, and it’s going to – we are going to see maturities of everybody’s book over the next four quarters to six quarters. So, we want to have some capital in reserve to protect against any issues, but we certainly don’t need the amount of liquidity that we have. And I think people will look back on this vintage, as Mike sort of alluded to of deal flow that we are seeing now as being one of the best vintages that’s come around in a long time, mostly because there isn’t a lot of people competing with us to underwrite these loans.
So, I think that’s the big picture backdrop is that it would make a lot of sense to be active if we find the right deal flow. And I think the only missing piece that’s starting to come together, as Mike alluded to, from the backlog that we have in Q1 is just volume of transactions. It’s obviously been light. But to the extent we can see good deals, you are going to see us originating and growing our earnings power.
Steve Delaney: Appreciate that, Rich. And you have got your conduit business, which is sort of a follow-on. I don’t know how much conversion you get from bridge to conduit. I assume that’s one of the synergies and benefits of having that product. Crazy question, I guess, but 77% multifamily. I mean would you guys ever consider buying a small dust lender just to kind of have that same conversion opportunity between bridge and permanent financing?
