Steven Delaney: Interesting that those conditions with the lenders would evolve right ahead of the opportunity we may be seeing for an improved interest rate outlook over the next year or two as well. So it sounds like you’re in a pretty good strategic position. One final one, and it’s just I don’t need a long answer at all, but there’s a lot of distress out there. I mean you just had to take back a property, I think, was Chicago that you were talking about in your remarks. Some deals find a workout or — and some end up going back to the first lender and the former area. I’m curious if you guys are seeing what I would call any rescue capital opportunities, higher yield opportunities where you may even you like the property, the loan is out of balance, et cetera, et cetera.
You could come in with a mezz and I don’t think you would do a mezz like that unless you could also get a nice slice of equity out of the deal. Is that to more merchant banking like as you see it for a senior bridge lender or is these unique times, would that encourage you to open your playbook up a little bit for that type of thing given the market?
Bryan Donohoe: Yeah. It’s a great point. And certainly, the uncertainty the opaque nature of the market keeps us really focused on the flexibility we outlined on the call. And that uncertainty, I think you’ve heard pretty widely throughout the industry. I’d say that for the most part, thus far, those — that gap financing or mezzanine or pref type structures, we haven’t seen it in any volume yet. So it’s been idiosyncratic. I do think that in times like this, the playbook will open up although the charter that we consistently talk about is we want to remain a lender to the space and a high degree of conviction around being a first mortgage lender rather than focused on the mezzanine. But across the broader Ares platform, we’ll continue to see and seek out opportunities for that GAAP financing for those best-in-class pieces of real estate throughout our core markets.
Steven Delaney: Thank you, Bryan for the comment.
Bryan Donohoe: Of course. Thank you.
Operator: Our next question comes from Don Fandetti with Wells Fargo. Please proceed with your question.
Donald Fandetti: Yes. When you do go to sell alone, how is the bid? And what’s the profile of the buyer? Is it offshore-type investors?
Bryan Donohoe: Yeah. Don, probably not enough of the data set to say that there’s a trend one way or the other. Clearly, the investor base that’s going to participate in this market is going to have some level of conviction on the sector or that location. So we don’t have enough to point to you to say it’s coming from one part of the world or another. In general, it’s unique parties that are familiar with an asset and see the long-term trends of supply and demand, especially as we touched on with this reduction in supply that we expect to see kind of fast forwarding 12 months, 18 months. And that buyer is trying to take advantage of a reset basis going into that dynamic. But no consistency in terms of where the capital is coming from as of yet.
Donald Fandetti: Got it. And then if the Fed is done and the 10-year yield eases a bit, how do you — how does that impact your business over the next six months to 12 months?
Bryan Donohoe: What I’d say is that I think if we can get that consistency with respect to rates, I think that clearly values are resetting based, at least in part on the impact of rates. If we can get stability, I think that assets become more under-writable across the sector, and I think we’ll free up some capital and allow people to move forward. So I think you — first and foremost, you’d be able to digest rates if they remain kind of range-bound, and I think you’ll see transaction volume pick up.
Donald Fandetti: Thank you.
Operator: Our next question comes from Jade Rahmani with KBW. Please proceed with your question.
Jade Rahmani: Thank you very much. For me, one of the important pieces is cash flow from operations, and it’s been running a little bit below the dividend. So what would be your thoughts as to dividend sustainability at this point?
