Crexus Investment — Q3 2012 Earnings Presentation
17 slides from Crexus Investment's earnings presentation, Nov 5, 2012
Slide 1: Supplemental Investment Information, Quarter Ended September 30, 2012
CREXUS INVESTMENT CORP. 1 WWW.CREXUSINVESTMENT.COM SUPPLEMENTAL INVESTMENT INFORMATION QUARTER ENDED SEPTEMBER 30, 2012
Slide 2: Disclaimer
CREXUS INVESTMENT CORP. 2 Disclaimer This presentation and our public documents to which we refer contain or incorporate by reference certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-loo
Slide 3: Q3 Investment Highlights
CREXUS INVESTMENT CORP. 3 Q3 Investment Highlights Portfolio Additions –$46.5 million of financing (6.40% coupon) secured by a bulk-distribution warehouse located in El Paso, TX –$39.8 million preferred equity investment (11.00% coupon) on a multifamily portfolio –Two mezzanine loans totaling $20.1
Slide 4: Investment Portfolio Composition
CREXUS INVESTMENT CORP. 4 Investment Portfolio Composition (1) Weighted average coupon based on Remaining Principal Amounts. (2) Maturity dates assume all of the borrowers’ extension options are exercised. (3) Purchase price for Real Estate held for Investment. Average asset cost basis for Real Esta
Slide 5: Senior Debt Positions
CREXUS INVESTMENT CORP. 5 Senior Debt Positions As of September 30, 2012. (1) Assumes all extension options are exercised. (2) Based on most recent third party appraisal, which may be prior to the transaction date. (3) Square footage in thousands. (4) At June 30, 2012, management classified loan as
Slide 6: Subordinate and Mezzanine Debt Positions
CREXUS INVESTMENT CORP. 6 Subordinate and Mezzanine Debt Positions As of September 30, 2012. (1) Assumes all extension options are exercised. (2) Based on most recent third party appraisal, which may be prior to the transaction date. (3) Square footage in thousands. (4) Paydowns result of property s
Slide 7: Subordinate and Mezzanine Debt Positions (continued)
CREXUS INVESTMENT CORP. 7 Subordinate and Mezzanine Debt Positions (continued) As of September 30, 2012. (1) Assumes all extension options are exercised. (2 ) Based on most recent third party appraisal, which may be prior to the transaction date. (3) Square footage in thousands. (4) Weighted average
Slide 8: Preferred Equity Position
CREXUS INVESTMENT CORP. 8 As of September 30, 2012. (1 ) Based on most recent third party appraisal, which may be prior to the transaction date Loan Type Property Type Location Transaction Date Maturity Date Remaining Principal ($000’s) Carrying Amount ($000’s) Coupon Amortization Schedule Senior LT
Slide 9: Real Estate Properties Portfolio
CREXUS INVESTMENT CORP. 9 Real Estate Properties Portfolio Property Type Location Transaction Date Asset Basis ($000’s) Gross Asset Yield First Mortgages ($000’s) First Mortgage Coupon Net Equity Investment ($000’s) Net Equity Yield Property Size(1) Equity Basis REAL ESTATE HELD FOR SALE: Hotel Vari
Slide 10: Portfolio Composition
CREXUS INVESTMENT CORP. 10 Portfolio Composition Real Estate Investments Debt/Preferred Equity Investments Percentages are based on face amounts as of September 30, 2012. Senior Debt 18% Equity Investments 7% Preferred Equity 5% Subordinate Debt 70% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Senior
Slide 11: Portfolio Diversification - Debt
CREXUS INVESTMENT CORP. 11 Portfolio Diversification - Debt Percentages are based on face amounts as of September 30, 2012. Percentages include Preferred Equity Investment Hotel, 31% TX 20% IL 11% NY 10% MD 9% CA 7% Other 43% Composition By State Composition By Property Type Hotel 16% Retail34% Offi
Slide 12: Portfolio Diversification – Real Estate Properties
CREXUS INVESTMENT CORP. 12 Portfolio Diversification – Real Estate Properties Percentages are based on carry amounts as of September 30, 2012. PA 39% MD 13% AZ 42% NV 6% Composition By State Composition By Property Type Industrial 48% Hotel 52%
Slide 13: Debt Portfolio Management
CREXUS INVESTMENT CORP. 13 Debt Portfolio Management Maturity Profile 12/31/2011 WAM: 3.30 yrs 9/30/2012 WAM: 4.87 yrs $ Millions Portfolio weighted average coupon has increased over 50% in the past 9 months Return Profile (1) Maturity date assumes all extension options are exercised. Maturities ass
Slide 14: Barclays Portfolio Transformation
CREXUS INVESTMENT CORP. 14 Barclays Portfolio Transformation Original Portfolio Positions Subordinate Debt 20% Senior Debt 80% REO 8% Refinanced 39% Par Payoff 14% DPO 39% Senior Debt 43% Subordinate Debt 57% Resolution Current Portfolio Positions Note: Percentages are based on face amounts DPO—Disc
Slide 15: Financial Statements
CREXUS INVESTMENT CORP. 15 WWW.ANNALY.COM CREXUSINVESTMENT.COM Financial Statements
Slide 16: Balance Sheet – Q3 2012
Balance Sheet – Q3 2012 (1) Derived from the audited financial statements at December 31, 2011. CREXUS INVESTMENT CORP. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (dollars in thousands, except share and per share data) September 30, 2012 December 31, 2011 Assets: (unaudited) (1) Cash and cash eq
Slide 17: Income Statement – Q3 2012
Income Statement – Q3 2012 CREXUS INVESTMENT CORP. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Quarter ended (dollars in thousands, except share and per share data) September 30, 2012 (unaudited) June 30, 2012 (unaudited) March 31, 2012 (unaudited) December 31, 2011 (unaudited) September