So I would say the mortgage company and the recycling of the capital, there is fluid. As it relates to the bigger picture, I’ve been pretty vocal. We are going to, and I alluded to this in my opening comments, I truly believe by the end of Q4 that there is a possibility, we’ll have 50 billion of AUM, as an asset manager, you think of like the biggest and best alternative asset managers out there, they have their C Corp, they have a REIT, and then they have their private capital business. That’s ultimately where I think we’ll be. And then hopefully, at some point down the road, we’ll have an insurance leads. So we’re working on all of these things. The capital formation around our businesses is going to be as we know, our stock is $9, book value is $12.30.
The capital formation side will likely be more in the private capital business than it will be in the public markets at this point, just based on how poorly I think REIT stocks trade. But, it’s safe to say, based on our ambitions and where we’re headed, and I think the progress that we have made, that we will be a real global alternative asset manager by the end of the year.
Kevin Barker: Okay, and so, are there any specific points that we should look for the see that this really has legs, and we start to see like it really playing out. Is it S1 on the mortgage company or the closing of Sculptors or certain particular points that you’re looking for, really say this is going to play out as expected?
Michael Nierenberg: Sure, so I think Sculptor obviously is an important piece as we go into the asset — grow our asset management business. I’d also say that we are an asset manager, we just operate under the wrapper of a REIT. Sculptor is very important in the asset management side, we’re working on another what I would call sizable transformational transaction that we expect to get done by the end of the year as well. And that gets you on the asset management business to where we want. On the mortgage company side, the cash flow that we get from that as a corporation, or at the Rithm level is you know awesome. So if you think about it, you look at earnings for the quarter where $0.42 or whatever it is plus $0.43 plus $0.15, for the excess, when I look at the mortgage company overall, and I look at our ROE, and I look at where we were minus the one timers, I think actual return on equity for the quarter is something around net-net 15%.
Is that right? You know, on an annual basis, I think we’re trending towards annual ROE of about 30%. So, we’re not looking to give up any of these assets because on a go forward basis in this rate environment, the mortgage company will help as well as all the other things that we have going probably contribute to something between $0.35 and $0.40 — $0.45 run rate on our core business. We don’t want to give that up, we just want to figure out a way to manufacture more capital at the cheapest basis, and then figure out how we can deploy that capital, in what I would call today’s great investing environment. But overall, we’re not giving up on the mortgage company, things that we’re looking at are expenses, we’re looking at retail, clearly, because that business really doesn’t make any money right now, when you think about true volumes and cost to run that business.
But overall, we’re really happy with the asset that we have. We just have to figure out a way to generate more capital because we think the investing environment is that good. That’s why we’re running around the globe, quite frankly, on our private capital business.
Kevin Barker: Right. Thanks for all the color, Michael.
Michael Nierenberg: Thanks, Kevin.
Operator: Thank you all very much. And with that we can — and this concludes our question-and-answer session. I would like to turn the conference back over to Michael Nierenberg for any closing remarks. Please go ahead.
Michael Nierenberg: Great. So thanks for dialing in everybody. Stay well and we look forward to updating you on more developments and as things change in our in our company. Have a great day. Thank you.
Operator: This conference has now concluded. Thank you for attending today’s presentation. You may now disconnect. Have a good day.
