Slide 1: Investor Presentation August 2018
1 Investor Presentation August 2018 1. Formerly known as Resource Capital Corp.
Slide 2: Forward Looking Statements and Other Disclosures
Forward Looking Statements and Other Disclosures This presentation contains forward-looking statements within the meaning of federal securities laws. These forward-looking statements are not historical facts but rather are based on our current beliefs, assumptions and expectations. These beliefs, as
Slide 3: Forward Looking Statements and Other Disclosures
Forward Looking Statements and Other Disclosures Past performance is not indicative of future results. There is no guarantee that any investment strategy referenced herein will work under all market conditions. Prior to making any investment decision, you should evaluate your ability to invest for t
Slide 4: Exantas Capital Corp. Overview
Exantas Capital Corp. Overview Sponsor Experience Extensive multi-cycle track record. Full scale platform. Management continuity. CRE Credit Expertise Extensive multicycle investment expertise. Access to C-III’s differentiated data and local CRE credit focused REIT contacts. NYSE: XAN
Slide 5: Investment Philosophy
Investment Philosophy XAN leverages C-III’s capabilities and expertise to invest in CRE credit investments. – Identify opportunities across the capital stack of multiple asset classes. – Source through relationships and deal flow. – Underwrite using extensive asset management platform and portfoli
Slide 6: XAN Senior Leadership
XAN Senior Leadership Andrew L. Farkas Robert C. Lieber Matthew J. Stern David J. Bryant Paul A. Hughson George E. Carleton Chairman Chief Executive Officer President Chief Financial Officer Head of Commercial Head of CMBS Real Estate Lending Investing C-III Founder, C-III Principal since C-II
Slide 7: Manager Overview
& EXANTAS Manager Overview
Slide 8: Leading CRE Asset Management and Services Firm
Leading CRE Asset Management and Services Firm1 Mortgage Origination ~240 Unique Platform Information Commercial Loan Offices Advantage Real Estate Network $10 billion Servicing Nationwide4 mortgage originations since inception 7,000 $240 billion real estate professionals named special servicing2, $
Slide 9: National Footprint
National Footprint Ability to utilize local market CRE professionals nationwide to source, diligence and underwrite investments. NAI Locations USRG Managed Properties C-III Affiliate-Sponsored Fund Owned Properties Metropolitan Statistical Areas Where C-III Has Resolved Assets C-III Offices As of De
Slide 10: C-III's Investment Management Platform
C-III’s Investment Management Platform C-III is a leading commercial real estate asset management firm with $9.3 billion of AUM.1 Real Estate Debt Real Estate Equity Private/Public Non-Traded Exantas Balance Sheet Private Funds Funds2 REITS Assets Under $1.9 Billion $1.7 Billion $0.5 Billion $3.1 Bi
Slide 11: Path Forward
& EXANTAS Path Forward
Slide 12: Investment Portfolio Transformation
Investment Portfolio Transformation 3Q’16 Assets1 Target Assets2 5% 25%-35% 32% CRE Loans 63% Other CRE Investments 65%-75% Non-Core Assets Non-Core Assets Include: Target Asset Benefits Include: Legacy CRE Loans Commercial Finance Assets Investment Type Benefit Middle Market Loans Other Non
Slide 13: Strategic Plan Execution
Strategic Plan Execution The Strategic Plan executed by C-III beginning in November 2016 has transformed XAN into a stable CRE credit investment vehicle. Before Strategic Plan1 After Strategic Plan1 Annual G&A (2016 vs. Post Plan) $63M ~$21M-$24M Non-CRE Employees 169 0 Corp. Debt Balance & Rate2 $2
Slide 14: Target Returns by Asset Class
Target Returns by Asset Class Asset Class Targeted Unlevered Yields1 Targeted Levered Yields1 CRE Whole Loans 5.0%-6.0% 9.0%-12.0% Mezzanine Debt 8.0%-11.0% 8.0%-11.0% Net Lease 5.5%-7.0% 8.0%-12.0% CMBS 4.0%-12.0% 9.0%-14.0% XAN Portfolio Total 9.0%-12.0% 1. The targeted yields set forth herein are
Slide 15: Illustrative Earnings Profile
Illustrative Earnings Profile1 (In millions, except share and per share data) Investable Corporate Capital Convertible Notes $219.5 Trust Preferred Securities2 50.0 Preferred Equity 116.0 Common Equity 439.9 Corporate Capital Base $825.4 Less: Working Capital (50.0) Investable Corporate Capital $775
Slide 16: Deployment Progress
Deployment Progress Summary of 2Q’18 CRE Investment Portfolio1 ($ in Millions) +29% Loans 10 $1,736 $1,628 $1,450 $1,496 Amount $195 Million $1,349 Spread 3.45% Bonds 13 Face Amount $77 Million 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 Wtd. Avg. Coupon 4.15% CRE Loans Other CRE Investments 1. CRE investment por
Slide 17: CRE Loan Origination
< EXANTAS CRE Loan Origination 14
Slide 18: Leveraging Platform to Find Good Risk-Adjusted Returns
Leveraging Platform to Find Good Risk-Adjusted Returns XAN’s core investment strategy is to originate transitional CRE loans, which C-III enhances by: Expanding XAN’s product type and structuring capabilities. Broadening XAN’s spectrum of borrower relationships through the combined XAN and C-III
Slide 19: XAN's CRE Loan Portfolio Diversification
XAN’s CRE Loan Portfolio Diversification XAN CRE Loan Balance by NCREIF U.S. Region1 XAN Loan Balance by Property Type1 Pacific 26.0% Northeast 6.4% West North Multifamily Retail Central 0.7% East North 55.2% 17.0% Central Mountain 4.3% 13.1% Mid Atlantic 9.8% Southeast 10.5% Southwest 29.2% Office
Slide 20: XAN's Origination Platform
XAN’s Origination Platform Comprehensive % of loans Deals Screened1 origination, screened underwriting, due 100% diligence and ~$22.5B vetting process. Reviewed and Quoted1 25% ~$5.6B Underwritten1 8% ~$1.8B Deals Closed $600M 3% 1. Values are approximate and represent all calendar year 2017 activit
Slide 21: Real Estate Credit Investment Opportunities: Duration and Diversification
Real Estate Credit Investment Opportunities: Duration and Diversification 18
Slide 22: Benefits of Longer Duration Investments
Benefits of Longer Duration Investments Transitional CRE lending remains XAN’s primary investment strategy. As an open-ended, stable income-oriented investment vehicle, supplementing XAN’s loan portfolio with longer duration investments can enhance return on equity and could provide increased: –
Slide 23: CMBS Investing
CMBS Investing CMBS investments improve XAN’s portfolio diversification. ‒ CMBS collateral pools consist of numerous fixed-rate, stable income producing properties. In-house CMBS expertise and trading flow position XAN to invest throughout the CMBS capital stack. CMBS B-Piece investing provide
Slide 24: Applying Competitive Advantages to CMBS
Applying Competitive Advantages to CMBS Ability to Re-Underwrite Assess Risk, Shape Credit, Invest Capital Every Loan in Pool at Any Risk/ Return Objective Principal & Interest Borrower & Lender Multiple Lenders Sell Master Servicer administers timely payment of principal and interest from Close 1st
Slide 25: Net Lease Investment Opportunity
Net Lease Investment Opportunity Net lease investments provide a long duration supplement to XAN’s asset portfolio. – Single tenant office, industrial and retail properties. – Rated and unrated credit tenants. Broad platform provides sourcing, due diligence, underwriting and credit capabilities
Slide 26: Summary
Summary 1 Executed Strategic Plan 2 Leverage C-III’s Sponsorship Refocused Investment Strategy Full Scale Platform Rejuvenated Business Plan Differentiated Data and Network Created Path to Deliver Core Earnings Experienced Management Team 3 XAN’s Investment Capabilities 4 Generate Long T
Slide 27: Appendix
& EXANTAS Appendix
Slide 28: Consolidated Statements of Operations
Consolidated Statements of Operations (In thousands, except share and per share data) For the Three Months Ended For the Six Months Ended Jun. 30, 2018 Jun. 30, 2017 Jun. 30, 2018 Jun. 30, 2017 Revenues Interest income $29,660 $23,635 $55,617 $49,106 Interest expense 16,159 14,347 30,543 28,601 Net
Slide 29: Consolidated Balance Sheets
Consolidated Balance Sheets (In thousands, except share and per share data) Jun. 30, 2018 Dec. 31, 2017 Assets Cash and cash equivalents $80,191 $181,490 Restricted cash 10,070 22,874 Accrued interest receivable 7,157 6,859 CRE loans, net of allowances of $4,529 and $5,328 1,446,018 1,284,822 Invest
Slide 30: Core Earnings
Core Earnings (Unaudited, in thousands, except share and per share data) Last Twelve For the Three Months Ended Months Ended Jun. 30, Mar. 31, Dec. 31, Sept. 30, Jun. 30, 2018 2018 2017 2017 2018 Net income (loss) allocable to common shares – GAAP $6,152 ($12,582) ($12,131) $12,644 ($5,917) Reconcil
Slide 31: Capitalization and Liquidity at June 30, 2018
Capitalization and Liquidity at June 30, 2018 XAN Capitalization XAN Liquidity $2,000 $900 Item Amount Wghtd. Avg. Cost Item Cash/Availability $1,800 $800 Term & Repurchase $416 L + 2.18% $1,600 Facilities $700 Wells Fargo $308 CRE Facility $1,400 $600 $1,200 Securitizations $632 L + 1.18% $500 $1,0
Slide 32: Strategic Plan Progress
Strategic Plan Progress $418.8 million of the Strategic Plan assets have been sold for proceeds of $418.2 million. Impairments and Impairments and Assets Monetized Identified Assets, Adjustments on Net Book Value Adjustments on through at Plan Inception Non-Monetized at June 30, 2018 Monetized Asset