Ares Commercial Real Estate Corporation · NYSE:ACRE
Ares Commercial Real Estate — Q2 2019 Earnings Presentation
15 slides from Ares Commercial Real Estate's earnings presentation, Jul 26, 2019
Slide 1: Second Quarter 2019 Earnings Presentation
Exhibit 99.2 Second 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: Second Quarter 2019 Highlights
Second Quarter 2019 Highlights • GAAP Earnings of $9.8 million or $0.34 per diluted common share Financial Results • Core Earnings(1) of $11.0 million or $0.38 per diluted common share • Book value per diluted common share of $14.75 • Closed three senior loans totaling $99.2 million in commitments i
Slide 4: Second Quarter 2019 Investment Activity
Second Quarter 2019 Investment Activity Second Quarter 2019 Characteristics of Funded Loans(5) Loans Summary ($ in millions) Number of loans closed 3 Industrial New loan commitments $99.2 59% Average size of loans closed $33.1 Percentage of floating rate loans 100% Percentage of senior loans 100% (4
Slide 5: Total Loans Held for Investment Portfolio Key Statistics
Total Loans Held for Investment Portfolio Key Statistics Loan Portfolio Characteristics(4) ($ in millions) Total loan commitments at closing $1,737.3 Outstanding principal balance $1,497.5 Mid-Atlantic/Northeast Weighted average unpaid principal balance of loan portfolio* $1,607.0 10% Total number o
Slide 6: Financing Sources Overview
Financing Sources Overview Financing Sources Composition(4) Financing Sources Detail 2017-FL3 Securitization ($ in millions) 36% Term Loan Total (7) Outstanding Financing Sources Commitments Interest Rate Balance Bank Facilities 2017-FL3 Securitization Wells Fargo Facility $ 500.0 LIBOR+1.50 to 2.25
Slide 7: Dividend Summary
Dividend Summary Quarterly Dividend Paid Since Q1-16 $0.35 $0.33 $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 $0.25 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 6
Slide 8: Appendix
Appendix O ARES
Slide 9: Loans Held for Investment Portfolio Details
Loans Held for Investment Portfolio Details ($ in millions) Origination Current Loan Outstanding Unleveraged (2) Payment # Loan Type Location Date Commitment Principal Carrying Value Interest Rate Effective Yield Maturity Date Terms(8) Multifamily Loans: 1 Senior FL Sep 2016 $89.7 $89.7 $89.6 L+4.75
Slide 10: Loans Held for Investment Portfolio Details
Loans Held for Investment Portfolio Details ($ in millions) Origination Current Loan Outstanding Unleveraged Payment # Loan Type Location Date Commitment Principal Carrying Value Interest Rate Effective Yield(2) Maturity Date Terms(8) Hotel Loans: 26 Senior Diversified Sep 2018 $78.0 $68.2 $67.8 L+3
Slide 11: Loans Held for Investment Portfolio Details
Loans Held for Investment Portfolio Details ($ in millions) Origination Current Loan Outstanding Unleveraged Payment # Loan Type Location Date Commitment Principal Carrying Value Interest Rate Effective Yield(2) Maturity Date Terms(8) Industrial Loans: 44 Senior NC May 2019 $40.5 $34.9 $34.6 L+4.05%
Slide 12: Consolidated Balance Sheets
Consolidated Balance Sheets As of ($ in thousands, except share and per share data) 6/30/2019 12/31/2018 ASSETS Cash and cash equivalents $ 5,215 $ 11,089 Restricted cash 379 379 Loans held for investment ($434,187 and $289,576 related to consolidated VIEs, respectively) 1,487,735 1,524,873 Real est
Slide 13: Consolidated Statements of Operations
Consolidated Statements of Operations For the Three Months Ended ($ in thousands, except share and per share data) 6/30/2019 3/31/2019 12/31/2018 9/30/2018 6/30/2018 Revenue: Interest income from loans held for investment $ 29,993 $ 27,986 $ 30,882 $ 30,362 $ 29,604 Interest expense (16,675) (15,740
Slide 14: 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) 6/30/2019 3/31/2019 12/31/2018 9/30/2018 6/30/2018 Net income attributable to common stockholders $ 9,755 $ 8,543 $ 10,018 $ 9,957 $ 9,303 Stock-based compensation 427 492 324
Slide 15: 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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