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We’ve achieved this growth through an incredibly volatile real estate environment, which highlights the strengths of our diversified and highly specialized platforms. As a capital-light alternative asset manager with high margins and limited ongoing capital needs outside of GP commitments to our funds, our business has produced strong cash flow during an otherwise challenging period for the broader commercial real estate industry. This profitability in our platform is a testament to our resilient, profitable business model. As I will explain further, with a new cycle forming, we believe these positive attributes of our platform are not adequately reflected in our share price today. Our recently published 2024 outlook, Navigating the Curve, outlines our perspective and provides details on why we feel so strongly about investing in the areas where Bridge has developed distinctive competencies.

In late 2022 and throughout 2023, as rates increased and the lending environment for real estate worsened, real estate asset prices reset more or less across the board. Although the Fed has kept rates at current elevated levels for the last six meetings, we believe we are close to or at the end of rate increases. The delay in rate reduction has had a modest positive effect as it has actually forced selected real estate asset sellers into the market at realistic prices. In response to our macro assessment, which candidly is mirrored by many of our industry counterparts and by much of our investor base, we believe 2024 represents an attractive entry point to deploy capital into our specialized strategies. We also believe that Bridges’ patience over the last 18 months has been warranted, and with $3.1 billion of dry powder, we have started to lean in to capitalize on selected opportunities.

We are optimistic about Bridge’s positioning. We are raising capital globally, leveraging our forward integration into property operations, and investing in selective, high-performing sectors of alternative assets with a middle market focus. Importantly, we continue to invest in our platform, building upon our best-in-class infrastructure and sales organization, with a number of mid and senior-level hires over the past year. Additionally, we continue to find new avenues to enhance operating efficiencies, driving lower costs for our LPs in areas such as property insurance and investor reporting. Turning to capital raising. The first quarter was busy, and we believe the dialogue with investors will bear fruit over the course of the year. We raised $153.2 million of capital during the first quarter, primarily in our Secondaries and opportunity zone strategies.

While the debt strategies vertical did not have a closing in Q1, we anticipate meaningful inflows in Q2. Our CSG team logged over 1,000 meetings and calls in the first quarter with both current and prospective investors. Capital raising has taken us across the Middle East in the UAE, Saudi Arabia, Kuwait, and others, into Japan and Singapore in APAC, up to the Nordics and multiple visits to London and then closer to home to Bermuda and Puerto Rico. Across the U.S., we have already touched over a third of the U.S. states and the District of Columbia and are on pace for our goal of having boots on the ground in almost every state this year. 2024 is meaningfully different than 2023 in terms of which Bridge strategies are available to investors.

For most of 2023, our capital raising was focused on net lease industrial, AMBS, and solar renewable energy, which are relatively newer strategies with lower targets as we build a following. In 2024, capital raising activities will feature vehicles from what we call our four horsemen, including our debt strategies, Workforce & Affordable Housing, Newbury Partners Secondaries, and Logistics Value-add strategies. Although these strategies will represent the bulk of capital raising focus, we have other attractive vehicles and initiatives to further drive our business in evolution, such as broadening wealth channel efforts. We launched an accredited investor-focused product within our net lease industrial income vertical in Q1 to capitalize on the growing retail investor segment.

We are now approved with several major custodians, including Fidelity, Schwab, and Pershing, as well as iCapital. iCapital is a leading platform providing alternative investment access to RIAs and broker dealers that do not have their own alternative investment groups. This is an important first step for the vehicle. We believe the combination of the attractiveness of the industrial sector, along with the yield, capital appreciation, and downside protection attributes of our net lease industrial income strategy will be in demand with this new retail constituency. Building on our success with qualified purchasers on the wealth platforms, this new channel represents an exciting opportunity for Bridge over time. We have also enhanced the team of CSG professionals who service the retail industrial distribution channel.

We’ve added retail distribution responsibilities to five members of our team, inclusive of multiple senior leaders, to complement our existing wealth team with more to come in this space in the future. With that, I will turn the call over to Jonathan.

Jonathan Slager: Thank you, Bob, and good morning. In the first quarter, industry-wide commercial real estate transaction volumes remained muted as higher interest rates and volatility within the debt capital markets continued to weigh on activity. However, we are seeing signs of a strengthening transaction environment, with prices beginning to stabilize and capital markets opening up. As of the end of April, year-to-date CMBS issuance is nearly triple the volume of at this point last year, and spreads on BBB minus loans have tightened 125 basis points. This gives us more confidence as debt capital becomes more available and cost trends lower. But we can’t predict when the Fed will start to cut rates or how much and how quickly they will adjust.

Our view is that the cost of capital and commercial real estate has peaked. And once the Fed gives the all clear from its first-rate drop, we anticipate that the two plus years of muted selling activity will bring sellers forward. With over $100 billion in dry powder and U.S. value-add and opportunistic equity funds and another $40 billion in debt funds, we expect markets to open up quickly and values to rebound. Trying to time the bottom precisely and waiting for this signal from the Fed has the potential to leave many investors behind. As such, we have started to lean in on select investments, particularly in Multifamily and Logistics. In Q1, we deployed over $330 million of equity capital. Notably, on the Multifamily side alone, we have closed or have under exclusive control nearly $800 million of assets by gross purchase price and another $250 million on the industrial side.

For Multifamily, this 2024 activity has been awarded at unlevered underwritten IRRs that are 30% better than pre-pandemic levels. And on a replacement cost basis, we’re at 60% versus pre-pandemic levels of 80%. And at the peak, we were nearly at 100%. While we are encouraged by the increased level of deal sourcing activity, our overall deployment trajectory will depend in part on a broader rebound in industry transaction volumes. The operating trends in most of our property portfolios remain healthy. Despite softening conditions in the market and our most recent Multifamily and Workforce vintages, we have exceeded our NOI projections by 9.6% life to date. In our first Logistics Value vintage, we have exceeded net effective rents by 21.8% on average since inception.

Operations are always important, but in the current environment where near-term supply issues and tight labor markets exist, operations will drive alpha and Bridge’s vertical integration and operational focus continue to drive results. Since 2020, Bridge Multifamily rents have outperformed by 24% compared to market rents. Our local operating knowledge and insights are so critical in a slower market for making sound investment decisions by knowing, which assets to lean in on and more importantly, which ones not to. Now turning to investment performance, excluding office, which is only 1.5% of our fee earning AUM, our equity real estate portfolio valuations were roughly flat in Q1. This is in line with broader market trends of stabilization.

As holders of assets and closed-end funds with long fund durations, we have the wherewithal to withstand short-term capital markets volatility as we focus on improving operations at the property level to maximize future exit values. In our credit strategies, the increase in base rates has supported a strong distribution yield. In commercial real estate, the last time we saw a meaningful reset in asset values and transaction volumes was during the GFC. Cycles provide the chance to capitalize on lower entry points and have always created attractive investment opportunities. For example, during the GFC, property values declined by 30% to 40%, creating a meaningful opportunity to capture value at a discount through replacement costs. The current cycle has seen value declines of a similar magnitude and we believe will offer similarly attractive entry points.

I’ll now turn the call over to Katie.

Katie Elsnab: Thank you, Jonathan. Bridge’s recurring fund management fees continue to provide stability to our business in a more volatile capital markets environment. Recurring fund management fees increased 17% year-over-year and 11% from last quarter. Fee-earning AUM increased 1% compared to last quarter, driven by deployment within Workforce & Affordable Housing Fund II. Over 97% of our fee-earning AUM is in long-term, closed-end funds with a weighted average duration of 6.6 years. Adding to the foundational stability of the business, our balance sheet remains resilient. Fee-related earnings to the Operating Company were $33.9 million in the quarter, increasing 19% from last quarter, mostly attributable to the $5.7 million write-off taken in Q4, along with higher transaction revenue, which was partially offset by higher fee-related expenses.

As we indicated on our call last quarter, the higher fee-related expenses reflect a more normalized expense environment and an increase for inflation adjustments to compensation and increased variable compensation. The year-over-year increase also includes the impact from our acquisition of Newbury Partners. On a modeling note, Q1 net earnings from Bridge property operators included a one-time leasing commission we earned of $1.5 million. As Bob and Jonathan noted, transaction activity appears to be improving. However, we are reliant on the broader commercial real estate market, which could cause more muted transaction-related revenue to persist in the near term. Fee-related margins will continue to be impacted to the extent that we have lower transaction fees and catch-up fees from capital closing into closed-end funds.

As transaction and capital raising volumes normalize, we expect to see a movement of our margins towards our longer-term average of approximately 50%. Distributable earnings to the Operating Company for the quarter were $32.2 million, with after-tax fee per share of $0.17, increasing 22% from last quarter, mostly due to the items discussed within fee-related earnings, along with slightly higher net real-life performance fees. Similar to last quarter, realizations were comprised of tax distributions within debt strategies. Realization revenue in the near term is expected to remain subdued. However, we are well positioned for an eventual acceleration in the context of improving liquidity in the real estate transaction market. Net accrued performance revenues on the balance sheet stands at $320.3 million.

In closing, we believe that we are well-positioned to navigate the near-term challenges in the institutional real estate sector due to our long tenure fee streams and our AUM concentrated to some of the most attractive sectors to achieve success as conditions inevitably improve. With that, I would now like to open the call for questions.

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