Eurocastle Investment Limited · EURONEXT:ECT

Eurocastle Investment — Investor Presentation (April 2016)

13 slides from Eurocastle Investment's investor presentation, April 2016

  1. Slide 1: Company Presentation April 2016

    EUROCASTLE INVESTMENT LIMITED Company Presentation April 2016

  2. Slide 2: Disclaimers

    Disclaimers This document and its contents contain statements about future events and expectations that are forward-looking statements. These statements typically contain words such as “expects”, “believes”, “estimated”, “will”, “intends”, “could”, “should”, “shall”, “risk”, “intends”, “estimates”,

  3. Slide 3: Eurocastle Overview

    Eurocastle Overview Eurocastle (ECT:NA) is a publicly traded European company and a leading investor in Italian distressed debt and real estate  Aim to drive growth primarily through investments in: 1 Italian Loan Servicer (doBank) 2 Italian NPLs 3 Italian RE Funds  Offer attractive dividend yield

  4. Slide 4: Eurocastle Today

    Eurocastle Today  Eurocastle’s business is split into 3 key segments  NAV of €533 million, or €7.35 per share(1) 1 2 3 Italian Loan Italian NPLs Italian RE Funds Cash / Other Servicer (doBank) Largest NPL Servicer in 16 NPL pools with 3 Italian €192 mm of cash + Italy servicing €45 billion combine

  5. Slide 5: Strong Financial Performance

    Strong Financial Performance  Normalized FFO €9.3 million or €0.13 per share, reflecting full quarter of doBank  Provides 1.04x dividend coverage, growing to 1.92x on fully invested basis  Proforma NFFO yield of 9% on current share price and 7% on NAV, going to 16% and 13% fully invested respecti

  6. Slide 6: 2015 Transformative Year

    2015 Transformative Year  Invested €266 million in Italian investments including doBank – largest transaction of this kind in Italy since financial crisis  Realized €78 million from legacy assets – legacy asset liquidation substantially complete  Italian NPL market at all-time high of €203 billio

  7. Slide 7: Investment Performance

    Investment Performance  Strong initial returns, expect to generate 15 - 20% lifetime unlevered IRR, 2.0x multiple Performance by Investment Type – as of December 31, 2015 Equity Net IRR Realisations NAV (€ in mm) Invested Investment to Date 1 2 doBank (Servicer +NPL pool) 246.0 2.1 243.9 256.2 Expe

  8. Slide 8: Italian Loan Servicer Update

    1 – Italian Loan Servicer Update Largest 3rd party servicer in Italy managing €45 billion GBV of loans  Highest rated by Fitch RSS1- / CSS1- and S&P “Strong”(1)  15 branches across Italy, 589 full time employees(1)  10 year servicing contract in-place with UniCredit, former parent bank  Incremen

  9. Slide 9: doBank NPL Portfolio Update

    2 doBank NPL Portfolio Update €3.3 billion GBV portfolio with 4,683 borrowers and €703k average claim size  42% secured by real estate, loans mainly located in northern & central Italy  Portfolio outperforming original underwriting, with €2.1 mm(1) of proceeds since closing in Oct. 2015  Pace – a

  10. Slide 10: Italian NPLs (excluding doBank Portfolio)

    2 Italian NPLs (excluding doBank Portfolio) €6.3 billion GBV in 15 pools of Italian loans  Underwritten returns average 18% IRR and WAL of 3.3 years  Loans continue to outperform original underwriting based on two criteria:  Pace – actual pace of cash collections 123% of underwriting(1)  Profita

  11. Slide 11: Italian RE Funds

    3 Italian RE Funds €48.3 million invested in three Italian Real Estate Funds acquired as a significant discount to underlying asset value  One public property fund (UIU) and two private funds (Redevelopment Fund and Armilla)  Strategy is to realize profits from asset sales as funds reach their upc

  12. Slide 12: Uniquely Positioned to Take Advantage of Current Market Dynamics

    Uniquely Positioned to Take Advantage of Current Market Dynamics Eurocastle benefits from relationship with two dominant servicers in Italy  Fortress, ECT’s manager, has been actively investing in Italy since 2000  To date has acquired over €22 billion GBV of Italian NPLs  Controls Italfondiario

  13. Slide 13: A Robust Actionable NPL Pipeline

    A Robust Actionable NPL Pipeline(1) Currently underwriting ~€12 billion GBV of potential near-term acquisitions & negotiating servicing for €43 billion GBV  Current NPL pipeline of ~€12 billion GBV  Exclusive or sole bidders on 4 portfolios with combined GBV of ~€2.5 billion  Shortlisted/actively

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