Slide 1: Company Presentation, August 2007
Exhibit 99.1 Company Presentation August 2007
Slide 2: Disclaimer
Disclaimer Except for historical information contained herein, the statements in this presentation regarding the Company's business, strategy, portfolio management and results of operations are forward-looking statements that are dependent upon certain risks and uncertainties, including those relate
Slide 3: Table of Contents
I. Overview II. Investment Strategy III. Financial Information TABLE OF CONTENTS
Slide 4: Capital Trust
o CAPITALT RUST
Slide 5: Capital Trust
Capital Trust Largest dedicated commercial real estate subordinate debt investor in the US Founded by Sam Zell and John Klopp in 1997 Originated over $10.0 billion of investments since inception Unparalleled track record Less than 1.0% loss experience on the entire portfolio Fully integrated interna
Slide 6: Unique Business Model
OVERVIEW I - 2 CT Investment Management Co., LLC (TRS) 100% CT Mezzanine Partners III, Inc. Unique Business Model Balance Sheet Net Interest Margin Investment Management Fee Income + Capital Trust, Inc. (NYSE: “CT”) (Management Contracts) Investment Manager CDO Collateral Manager Special Servicer CT
Slide 7: Recent Highlights
Recent Highlights Balance Sheet - Q2 ‘07 originations of $687 million Completed acquisition of healthcare real estate lending platform – PRN Capital Investment Management - Q2 ’07 originations of $842 million Closed CTX Fund I, L.P. with $50 million of equity commitments to invest in subordinate sec
Slide 8: Share Price and Valuation Metrics
NYSE: CT Share Price (Close) Current (8/1/07) $31.10 High (2/7/07) $55.27 Low (7/31/07) $30.93 Valuation Metrics CT Peers (1) Price/Book 1.2x 0.9x P/E TTM 8.8x 8.1x Div. Yield 10.3% 16.7% Daily Volume Average (5/1/07-8/1/07) 199,722 Trailing 12-Month Performance Note: (1) Peer group includes iStar F
Slide 9: Growth Strategy
OVERVIEW I - 5 Growth Strategy Continue to grow balance sheet assets Continue to grow investment management business through the sponsorship of additional vehicles Create the most efficient capital structure through the use of CDOs and other structured products Expand our franchise Incubate and/or a
Slide 10: Board of Directors and Management Team
Board of Directors Sam Zell Thomas Dobrowski Martin Edelman Craig Hatkoff Edward Hyman John Klopp Henry Nassau Joshua Polan Lynne Sagalyn OVERVIEW I -6 Seasoned Management Team Capital Markets CEO, John Klopp CFO, Geoffrey Jervis COO, Stephen Plavin Finance/Accounting Administration CRE Investing &
Slide 11: Investment Strategy
Investment Strategy
Slide 12: A Large and Dynamic Market
II - 1 Note: (1) Source: Federal Reserve Data. INVESTMENT STRATEGY A Large and Dynamic Market CMBS has taken a larger share of a growing market Market Growth 3x CMBS Growth 7x
Slide 13: Growth of Securitization
II - 2 INVESTMENT STRATEGY Growth of Securitization $153 billion of issuance to date in 2007 Note: (1) Source: JPMorgan, Commercial Mortgage Alert.
Slide 14: Evolving Capital Structure
Equity 1 st Mortgage A Note Equity Equity IG CMBS Equity Traditional Early Stage Mezzanine Current Multiple Tranches of Subordinate CMBS, B Notes, Mezzanine Loans and Preferred Equity Evolving Capital Structure INVESTMENT STRATEGY II - 3
Slide 15: Relative Value
Equity AAA to A CMBS BBB AAA to A CMBS BBB Equity II - 4 Senior B Note Junior B Note Junior Mezzanine Senior Mezzanine INVESTMENT STRATEGY Relative Value B BB NR Floating Rate $39 Billion 2006 Fixed Rate $167 Billion 2006
Slide 16: Collateralized Debt Obligation Model
Investment Grade CDO Notes CDO Equity Sold to 3 rd Parties Retained by Capital Trust II - 5 Below IG CDO Notes INVESTMENT STRATEGY Collateralized Debt Obligation Model Mezzanine Loans B Notes Subordinate CMBS CDO I $324 million / Reinvesting CDO II $338 million / Reinvesting CDO III $341 million / S
Slide 17: Competitive Advantages
II - 6 INVESTMENT STRATEGY Competitive Advantages Investment Origination Broad Network/Established Relationships Structural Creativity and Flexibility Quick Turnaround/Certainty of Closing Transaction Execution Credit Underwriting Expertise Financial Structuring Experience Proven Process Capital Acc
Slide 18: Senior Debt Provided by Major Lenders
Senior Debt Provided by Morgan Stanley Town & Country Portfolio Nationwide $1 Billion Senior Debt Provided by Calyon 40 Central Park South New York, NY $70 Million Senior Debt Led by Merrill Lynch Trizec Office Portfolio Nationwide $6 Billion Senior Debt Provided by IXIS Real Estate Capital Wyvernwo
Slide 19: Investment Process
Origination Asset Mgmt. Approval Underwriting II - 8 Originators Due Diligence Senior Lenders Borrowers Brokers Deal Team Business Credit Team Finance/Capital Markets Team Legal Structure Investment Committee Board of Directors Credit Providers Partners Asset Mgmt. Team Credit Team Finance/Capital M
Slide 20: Risk Management Principles
II - 9 INVESTMENT STRATEGY Risk Management Principles Create diversified portfolios Asset category, property type and geographic market Prudently employ leverage Enhance returns Increase the size and diversity of the portfolios Manage a matched book Control asset/liability mix (index & duration) Use
Slide 21: Financial Information
Financial Information
Slide 22: Capital Trust Structure and Balance Sheets by Entity
CT High Grade Mezzanine SM 6/30/07 Assets $208 Liabilities --- Equity $208 (0.0% owned) (4.7% owned) Capital Trust, Inc. 6/30/07 Assets $3,189 Liabilities $2,737 Equity $452 CT Investment Management Co., LLC (TRS) (100% owned) (Management Contracts) III - 1 Net Interest Margin Base and Incentive Man
Slide 23: Financial Information: Assets and Liabilities
FINANCIAL INFORMATION Assets ($000s) Assets Cash Loans CMBS Equity Investments Total Return Swaps Interest Rate Hedges (Swaps) Other Total Assets Liabilities Secured Debt CDO Debt Credit Facility Junior Sub. Debentures Participations Sold Other Total Liabilities Common Equity 6/30/07 $28,266 2,197,5
Slide 24: Portfolio Breakdown
III - 3 FINANCIAL INFORMATION Portfolio Breakdown Notes: (1) Capital Trust portfolio as of 6/30/07.
Slide 25: Liabilities and Equity
Assets Cash Loans CMBS Equity Investments Total Return Swaps Interest Rate Hedges (Swaps) Other Total Assets Liabilities Secured Debt CDO Debt Credit Facility Junior Sub. Debentures Participations Sold Other Total Liabilities Common Equity 6/30/07 $28,266 2,197,529 891,367 12,109 - 10,570 48,875 $3,
Slide 26: CT Investment Management Co., LLC
CT Investment Management Co., LLC (TRS) III - 5 FINANCIAL INFORMATION Investment Management ($ millions) $1.1 billion of assets under management $1.2 billion of equity commitments Notes: (1) Asset level pari passu participations with Capital Trust, Inc. (2) Represents the total notional cash exposur
Slide 27: Income Statement
Portfolio Net Interest Margin Interest Income Interest Expense Net Interest Margin Other Revenue Management & Advisory Fees Incentive Management Fees Other Subtotal Other Expenses G&A D&A Subtotal Recovery of provision for losses Income/(Loss) from Equity Investments Income Taxes Net Income Net Inco
Slide 28: Conclusion
FINANCIAL INFORMATION III - 7 Conclusion Dominant franchise in an attractive/growing market niche Organic growth through: Balance sheet investments – net interest margin Assets under management – base and incentive management fees Stable capital structure through the use of CDOs and other structured