CBRE Realty Finance, Inc. Q3 2008 Earnings Call Transcript

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Question-and-Answer Session

Operator

(Operator instructions) Your first question comes from the line of Klaus Von Sutterheim [ph].

Klaus Von Sutterheim

Yes. Hi. I didn’t hear what you said about the Maclow properties. I heard you mention it, but I didn’t hear what you said.

Ken Witkin

What we said about the Maclow properties, we had two major exposures to Maclow; one was a loan to the EOP office portfolio where we took full reserves last quarter and we had one remaining asset where we had reserved a part of the loan and that was the land site in New York City. The original loan was $42.8 million. We reserved approximately $11 million and we've decided to take the remaining reserve on that. So, of the total write-offs or reserves this quarter, we're taking another approximately $31 million.

Klaus Von Sutterheim

The other question I had, I seem to remember reading or hearing that you have – there were some involvement with a property on the 125^th street in Manhattan that was a conversion, I think, from rent control to free market rent, and then there was another one which I've (inaudible) on Peter Cooper, I can’t remember whether you’re involved in that one also. Can you – am I right about that and if so, can you give me an update?

Ken Witkin

I’m happy to. Fortunately, we were only in one of those.

Klaus Von Sutterheim

The Riverton [ph] right, it was Riverton?

Ken Witkin

Riverton, yes. And we had a $25 million mezzanine position behind $225 million of senior and securitized indebtedness. And last quarter, we made the decision to take a provision of the full $25 million. That deal and there’s been a lot of pressure around it. We really can’t discuss a lot about it at this time other than to say all the parties are still in negotiation.

Klaus Von Sutterheim

But you reserved again, is that right?

Ken Witkin

Yes, we did 100%.

Klaus Von Sutterheim

Okay. That’s it for me. Thanks.

Ken Witkin

Thank you. Thank you for your question.

Klaus Von Sutterheim

Wait now, let me ask you another one.

Ken Witkin

Sure.

Klaus Von Sutterheim

Can you talk about the dividend policy? You didn’t talk about that at all.

Ken Witkin

We don’t provide any guidance. We review it quarter-to-quarter with our Board and we’ll be making that decision again at our next Board meeting.

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