[maccoinnich]

From a KKR Earnings Call transcript, via Seeking Alpha:

With respect to certain loans, we are seeing improving trends in select properties, which may lead to positive credit momentum in other assets. As we’ve discussed on previous calls, we are nearing the next phase on our Portland Retail loan. We intend to foreclose and to take ownership of the asset, enabling us to optimize value over the near and medium-term. With our scaled and integrated U.S. real estate platform, we have the capabilities, relationships, and partners to execute this business plan to stabilize the property and optimize value for disposition at a future date.

Upon taking title, which is targeted for the fourth quarter, we will begin to prepare for a comprehensive redevelopment of the site, which we expect will include multiple uses, including residential and creative offices. We expect a more fulsome update on our next earnings call. We still feel our $40 million CECL reserve is appropriate and therefore expect little impact to GAAP earnings and book value. However, upon foreclosure, we will recognize a loss through our cash metric of distributable earnings. This quarter, we received approximately $935 million of repayments.