Acres Commercial Realty Corp. · NYSE:ACR
Acres Commercial Realty — Resource Capital — Investor Presentation (June 2015)
18 slides from Acres Commercial Realty's investor presentation, Jun 24, 2015
Slide 1: Resource Capital Corp. June 2015
0 Resource Capital Corp. June 2015
Slide 2: Safe Harbor
1 Safe Harbor This presentation contains forward-looking statements that involve risks and uncertainties. These forward-looking statements are not historical facts but rather are based on our current beliefs, assumptions and expectations. These beliefs, assumptions and expectations can change as a r
Slide 3: Business Overview
2 Business Overview (1) As of March 31, 2015 (2) Declared for the quarter ended and shareholders of record as of March 31, 2015 Exchange / Ticker NYSE: "RSO" Business Structure REIT Total Market Capitalization (1) $609 million Investment Portfolio (1) $2.9 billion Dividend paid (2) $0.16/share
Slide 4: RSO is a REIT focused on transitional commercial real estate mortgage loans
RSO is a REIT primarily focused on originating, underwriting and investing in transitional commercial real estate mortgage loans Approximately $2.9 billion in assets as of March 31, 2015 Provides customized financing solutions throughout the US to commercial real estate borrowers in multi-fami
Slide 5: Powerful and Established CRE Platform
4 Powerful and Established CRE Platform Powerful core real estate platform and established management team in origination, acquisition, asset management and securitization of real estate debt and debt securities Solid origination team that focuses on transitional real estate loans. By having our
Slide 6: Return on Equity in CRE Loans
Return on Equity in CRE Loans Illustrative Example of a $22.1 Million Loan Notes: * Loan terms are based on the weighted average loan terms of the two most recent securitizations * Cost of financing is based on the weighted average costs of the two most recent securitizations and are fully loaded to
Slide 7: Real Estate Loan Originations By Year
Real Estate Loan Originations By Year 6 * Projected M il lio n s $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 2010 2011 2012 2013 2014 2015* CAGR= 164%
Slide 8: CRE Loan Portfolio Details
Multifamily 46.6% Office 17.3% Hotel 16.7% Retail 13.9% Other 5.5% CRE Loan Portfolio Details 7 * As of 3/31/2015 Substantial portfolio diversification supports our strong credit performance Total CRE Loan Portfolio by Property Type Total = $1,454 million Total CRE Loan Portfolio by Loan Type Whole
Slide 9: Term financing facilities and securitization financing
8 The term financing facilities are being utilized as we aggregate collateral and make plans to access the securitized financing markets to optimally match fund our assets Loans are currently financed on a $400 million term financing facility with Wells Fargo Bank and a $200 million term financing
Slide 10: Historical Net Charge-offs of RSO vs. Peers
Historical Net Charge-offs of RSO Real Estate and CMBS Investments vs. Peers 0.02% 0.41% 3.30% 3.47% 1.28% 1.48% 0.41% 0.63% 0.08% 0.92% 5.14% 9.06% 3.56% 2.87% 3.18% 0.66% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 2007 2008 2009 2010 2011 2012 2013 2014* RSO Peer mean Source: SNL Financial -Peer mean includes
Slide 11: Leveraged/Middle Market Loans & Commercial Finance
Leveraged/Middle Market Loans & Commercial Finance 10
Slide 12: Middle Market Loans - Northport Capital
Middle Market Loans - Northport Capital 11 Northport Capital (“Northport”) is a commercial lending platform specializing in middle market and lower middle market US companies Managed by an experienced middle market investment team − The team includes 7 investment professionals primarily engaged
Slide 13: Middle Market Loan Portfolio Details
Middle Market Loan Portfolio Details 12 Industry Total Portfolio = $295 mm Beverage, Food and Tobacco 4.2% Buildings and Real Estate 5.2% Chemicals, Plastics, and Rubber 2.0% Diversified Manufacturing 3.5% Diversified Service 5.4% Finance 8.1% Healthcare, Education, and Childcare 9.3% Home Furnishin
Slide 14: Company Summary
Company Summary 13
Slide 15: RSO Portfolio
RSO Portfolio Commercial Real Estate Middle Market Loans & Leveraged Loans Other Credit Opportunities Types of Assets • Commercial Mortgages • Senior Whole Loans • Mezzanine Loans • CMBS • Structured Investments in Real Estate • Middle market corporate loans; self-originated and syndicated loans • C
Slide 16: Clean Balance Sheet Leverage Since 2008
15 Clean Balance Sheet Leverage Since 2008 Securitization Compliance All RSO structured finance vehicles continue to pay all classes according to their terms Compliant with OC and IC tests as of 3/31/15 and have never failed either test since inception RSO voluntarily reports over and above CR
Slide 17: RSO Objectives
RSO Objectives 16 Goal of at least 90% equity invested in Real Estate – currently 74% Optimize business units for maximum regulatory and tax efficiency Address market perceptions of diversity of business units Narrow the gap between AFFO and Net Income Increase Net Interest Income
Slide 18: RSO Highlights
Maintain a strong cash dividend and ROE, and have paid $11.28 in dividends since inception in March 2005 Powerful core platforms and established management teams in real estate lending and broadly syndicated corporate loans Pristine Balance Sheet with leverage at 2.1x Floating-rate assets (L