Altisource Asset Management Corp · OTC:AAMCF
Altisource Asset Management — Investor Presentation (January 2013)
13 slides from Altisource Asset Management's investor presentation, Jan 16, 2013
Slide 1: Altisource Residential Corporation
January 2013 Proprietary and Confidential ALTISOURCE RESIDENTIAL CORPORATION
Slide 2: Forward Looking Statements
Forward Looking Statements This material has been prepared solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities and should not be treated as giving investment advice. It is not targeted to the specific investment objectives, financi
Slide 3: Introduction
Introduction Chairman of the Board of RESI. Chairman of the Board of OCN, ASPS, HLSS and AAMC. CEO of RESI and AAMC since December 2012. Prior to joining the Company, Ashish served as the CEO of Correspondent One (Joint venture between OCN and ASPS), and Executive Vice President - Asset Management o
Slide 4: Long History of Value Creation
Long History of Value Creation Servicing Share Price Performance Since IPO Value Proposition Substantial growth profile with over $325 billion UPB Highly scalable platform; cost per loan ~30% of industry average Superior servicing and loss mitigation Over 150,000 repair, maintenance and inspection o
Slide 5: Sizable Market Opportunity Driving Acquisition Pipeline
Sizable Market Opportunity Driving Acquisition Pipeline U.S. Housing Market 132.6mm Manuf. Homes, Boats, etc: 1.6mm Institutional Quality Apartments (5+ units): 17.0mm 1-Unit Rental: 13.1mm 2-4 units MF and Other: 7.8mm No Mortgage: 24.4mm Greater than 5% Equity: 36.2mm Less than 5% Equity: 2.5mm Ne
Slide 6: Positioned to Benefit From Proven Platform
Positioned to Benefit From Proven Platform Altisource Residential Corporation NYSE: “RESI” Maryland Incorporated REIT Ocwen Financial Corporation NYSE: “OCN” Altisource Portfolio Solution S.A. NASDAQ: “ASPS” Altisource Asset Management Corporation OTC: “AAMC” Incorporated in U.S. Virgin Islands Asse
Slide 7: Our Business Model
Our Business Model RESI’s unique business model provides it with unparalleled bespoke operating capabilities that are not replicable and is poised to capitalize on the substantial single family rental opportunity. Substantial Market Opportunity Lower Acquisition Costs Established Strategic Relations
Slide 8: RESI Has Differentiated Business Model
RESI Has Differentiated Business Model RESI Model Other Models Acquisition Strategy Footprint Operating Cost Vendor Management Value Proposition National Lower and predictable cost structure Multifaceted approach with focus on NPLs Established national network Property yield + NPL monetization + HPI
Slide 9: Multiple Potential Avenues of Value Creation
Multiple Potential Avenues of Value Creation Purchase non performing loans Our model seeks to employ alternative strategies to deliver value to shareholders in a timely and accretive fashion. Unlike other participants’ models, RESI’s total yield is not reliant on HPI. Program Loan Modification Colla
Slide 10: Liquidated/Refinanced NPLs Provide Initial Earnings Momentum
Liquidated/Refinanced NPLs Provide Initial Earnings Momentum We expect that Refinances, Short Sales and DFLs/DILs will provide us with the ability to generate cash flow in the near term. Refinancing 10% of the portfolio is expected to result in a gross levered yield of 6.7% for the entire portfolio.
Slide 11: NPL Cost Advantage
NPLs are expected to be purchased at a higher discount rate as compared to that used by other market players. NPL Cost Advantage We believe that our cost of acquisition for single family rental assets is likely to be lower than many of our competitors RESI purchase price vis-à-vis market * This is a
Slide 12: Single Property Rental Yield: Illustrative Economics
Single Property Rental Yield: Illustrative Economics RESI intends to leverage lower operating costs, lower acquisition costs and national infrastructure to achieve return thresholds. (1) The 4.5% expense base is illustrative and based on management’s belief that the Company can receive these service
Slide 13: Superior Business Model Supported by a Sound Ecosystem
Superior Business Model Supported by a Sound Ecosystem Expects to acquire single-family rental assets at a lower cost via purchase of NPL Seeking near-term earnings power minimizes near-term earnings desert via active loan modifications and refinancing Tax-efficient cash distribution via public REIT
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