Ares Commercial Real Estate Corporation · NYSE:ACRE
Ares Commercial Real Estate — Q1 2019 Earnings Presentation
16 slides from Ares Commercial Real Estate's earnings presentation, May 1, 2019
Slide 1: First Quarter 2019 Earnings Presentation
Exhibit 99.2 First Quarter 2019 Earnings Presentation
Slide 2: Important Notice
Important Notice Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended, which may relate to future events or the future performance or financ
Slide 3: First Quarter 2019 Highlights
First Quarter 2019 Highlights • GAAP Earnings of $8.5 million or $0.30 per common share Financial Results • Core Earnings(1) of $9.1 million or $0.32 per common share • Book value per common share of $14.74 • Closed 4 senior loans totaling $234.1 million in commitments Loan Originations • $121.2 mil
Slide 4: First Quarter 2019 Investment Activity
First Quarter 2019 Investment Activity First Quarter 2019 Characteristics of Funded Loans(4) Loans Summary ($ in millions) Self Storage Number of loans closed 4 22% New loan commitments $234.1 Loan fundings $121.2 Average size of loans closed $58.5 Percentage of floating rate loans 100% Percentage o
Slide 5: Total Loans Held for Investment Portfolio Key Statistics
Total Loans Held for Investment Portfolio* Key Statistics Loan Portfolio Characteristics(4) ($ in millions) Total loan commitments at closing* $1,873 Outstanding principal balance* $1,559 Mid-Atlantic/Northeast 9% Weighted average unpaid principal balance of loan portfolio** $1,558 Total number of l
Slide 6: Financing Sources Overview
Financing Sources Overview Financing Sources Composition(4) Financing Sources Detail* ($ in millions) Total Outstanding (5) Term Loan Funding Facilities Commitments Interest Rate Balance 2017-FL3 Securitization Bank Facilities 38% Wells Fargo Facility $ 500.0 LIBOR + 1.50% - 2.25% $ 174.1 2017-FL3 S
Slide 7: Dividend Summary
Dividend Summary Quarterly Dividend Paid Since Q1-16 $0.35 $0.33 $0.33 $0.31 $0.31 $0.29 $0.29 $0.28 $0.28 $0.27 $0.27 $0.27 $0.27 $0.27 $0.26 $0.26 $0.26 $0.26 $0.25 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 6
Slide 8: Westchester Marriott
Westchester Marriott* • On March 8, 2019, ACRE acquired legal title to the Westchester Marriott through a negotiated transaction with the former borrower • ACRE presents the hotel as Real Estate Owned in its financial statements • Location: Tarrytown, New York (Westchester County) • Brand and Manage
Slide 9: Appendix
Appendix O ARES
Slide 10: Loans Held for Investment Portfolio Details
Loans Held for Investment Portfolio Details ($ in millions) Origination Current Loan Outstanding Unlevered Payment # Loan Type Location Date Commitment Principal Carrying Value Interest Rate Effective Yield Maturity Date Terms Multifamily Loans: 1 Senior FL Sep 2016 $89.7 $89.7 $89.6 L+4.75% 7.8% Se
Slide 11: Loans Held for Investment Portfolio Details
Loans Held for Investment Portfolio Details ($ in millions) Origination Current Loan Outstanding Unlevered Payment # Loan Type Location Date Commitment Principal Carrying Value Interest Rate Effective Yield Maturity Date Terms Hotel Loans: 26 Senior Diversified Sep 2018 $78.0 $68.0 $67.4 L+3.60% 6.6
Slide 12: Loans Held for Investment Portfolio Details
Loans Held for Investment Portfolio Details ($ in millions) Origination Current Loan Outstanding Unlevered Payment # Loan Type Location Date Commitment Principal Carrying Value Interest Rate Effective Yield Maturity Date Terms Residential/Condominium Loans: 41 Senior FL Oct 2018 $17.5 $17.5 $17.4 L+
Slide 13: Consolidated Statements of Operations
Consolidated Statements of Operations For the Three Months Ended ($ in thousands, except share and per share data) 3/31/2019 12/31/2018 9/30/2018 6/30/2018 3/31/2018 Revenue: Interest income from loans held for investment $ 27,986 $ 30,882 $ 30,362 $ 29,604 $ 27,436 Interest expense (15,740) (16,357
Slide 14: Consolidated Balance Sheets
Consolidated Balance Sheets As of ($ in thousands, except share and per share data) 3/31/2019 12/31/2018 ASSETS Cash and cash equivalents $ 12,814 $ 11,089 Restricted cash 379 379 Loans held for investment ($557,000 and $289,576 related to consolidated VIEs, respectively) 1,548,158 1,524,873 Real es
Slide 15: Reconciliation of Net Income to Non-GAAP Core Earnings
Reconciliation of Net Income to Non-GAAP Core Earnings(1) For the Three Months Ended ($ in thousands, except per share data) 3/31/2019 12/31/2018 9/30/2018 6/30/2018 3/31/2018 Net income attributable to common stockholders $ 8,543 $ 10,018 $ 9,957 $ 9,303 $ 9,318 Stock-based compensation 492 324 329
Slide 16: Footnotes
Footnotes 1. The Company believes the disclosure of Core Earnings provides useful information to investors regarding the calculation of incentive fees the Company pays to its manager, Ares Commercial Real Estate Management LLC, and the Company’s financial performance. Core Earnings is an adjusted no
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