ACRES Commercial Realty Corp. (NYSE:ACR) Q4 2022 Earnings Call Transcript

Dave Bryant: There may be a small amount of that, Steve. It’s not a particularly meaningful number. I would say that the biggest assumption in that guidance is that we expect — we’re keeping the CECL reserve at that 91 basis point level that we ended the year at. Of course, that could change during 2023, but we don’t know enough now to meaningfully or accurately predict what that might be.

Steven Delaney: I understand. So, the consensus you’ve got is with the 91 basis point CECL reserve will be sort of a constant within that is what I’m hearing you say, David.

Dave Bryant: Correct.

Steven Delaney: Okay, great. Okay. And just stepping back, 1 kind of big picture thing. We are in a different market today than we were maybe six months ago in terms of commercial real estate, certainly 12 months ago. The capital loss carryforward you have, just speaking with several of you over the last year or so, the thought is that it probably is hard real estate that is the asset class that will generate potential capital gains. I’m curious in this less certain market, how proactive you may be and what you’re seeing in attractively valued commercial real estate properties that you might decide to invest in, in order to hopefully utilize your capital loss carryforward? Thanks.

Mark Fogel: Steve, thanks for the question. I wouldn’t expect us to be too active in going after additional equity investments. I think what we have for now is what we’ll stick with for the remainder of the year at least. Our business is making commercial mortgage loans and not really making equity investments. So, I would think that if there is distressed opportunities out there, it’s probably not something that we’re going to be going after.

Steven Delaney: Got it. Well, thank you for the comments.

Mark Fogel: Thank you.

Operator: Ladies and gentlemen, this concludes our question-and-answer session. I would like to turn the conference back over to Mark Fogel for any closing remarks.

Mark Fogel: Well, thank you, everybody, for joining us today. We appreciate everybody’s support, and we look forward to speaking again in the first quarter of 2023 and hopefully, having some robust earnings to discuss. Talk soon.

Operator: Thank you, sir. The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.