Doug Bouquard: Eric, with respect to your specific question, we don’t disclose more to our peers with respect to the general reserve, individual reserve amounts per loan. But the pronouncement is in the guidance. It’s been drafted in that way. We pool loans in accordance with the guidance, and then establish reserves accordingly. So unfortunately, we can’t provide to you that specific of an answer. But clearly, you can see what the reserves are with respect to the four specifically identified loans, not loan by loan, but in the aggregate, that’s clearly disclose.
Eric Hagen : Okay. Yeah, that’s helpful detail. I appreciate that. You guys mentioned the goal of reinvesting what comes back to you through repayments. Can you talk about how the current environment allows you to maybe negotiate better to loan terms than you were getting say a year ago. Like where would you see that show up in the kind of value of what you’re putting on today?
A – Doug Bouquard: Yes sure, I mean I think we’re just going to start from the top. I mean first of all, spreads, spreads are generally lighter and obviously it varies I would say by property type. To kind of bucket the loan in sort of two universes, I would say within multifamily and industrial is where we’re generally seeing loan spreads approximately 75 to 100 basis points wider than a year ago. And then I think as you get into hotel, particularly you could probably see loan spreads over 100 to 150 basis points wider. For example, we just closed a hotel loan in the beginning of the first quarter, which is priced at SOFR plus 5.10% at you know €“ and approximately 60% loan to cost loan. So new acquisition where we’re getting paid SOFR 5.10% I think is relatively attractive.
That loan probably would have been somewhere in the mid to high threes about a year ago. So that’s sort of the common on spreads. And then in terms of structure, the short version is that simply put, there’s just fewer lenders competing for those loans, so we feel like we have more leverage to kind of gather more and more structural features, I would say specifically around cash flow triggers, debt yield triggers and really any other covenants is where we just have on the margin, more leverage to protect our balance sheet. But again, I think its very case specific, but from a leverage perspective just I would sort of view it as you have €“ proceeds are down anywhere from 5% to 15%, and then loan spreads are probably wider, 100 to 150 bips.
That’s probably the simplest way to describe the current market.
Eric Hagen : That’s really helpful. That’s it for me, thank you.
A – Doug Bouquard: Thank you, Eric.
Operator: Thank you. We take our next question from the line of Aaron Seganovic with Citi. Please go ahead.
Aaron Seganovic: Thanks. You had some loans still quite very matured in January and February. I apologize if you’ve already addressed this, but how are those moving there. I think like four and five rated loans. How are you handling those situations?
Bob Foley: Well, we’ve had a couple of scheduled maturities as you can see in the mortgage schedule. We’ve had one office loan in Southern California, four rated, which we paid I think in earlier this month, in February. We had one or two loans that extended. The borrowers you know satisfied the conditions precedent to an extension, so they generally extend for a year. And then we had one or two loans with shorter term extensions, where either the borrowers working on an exit strategy or we are working with the borrower in a collaborative, but commercially reasonable way to extend the loan, but again only on terms that it make sense for the company and its shareholders.
