Acres Commercial Realty Corp. · NYSE:ACR
Acres Commercial Realty — Resource Capital — Corporate Update (October 2007)
18 slides from Acres Commercial Realty's corporate update, Oct 5, 2007
Slide 1: Resource Capital Corp. Market Update
Resource Capital Corp. Market Update October 5, 2007
Slide 2: Business Overview
Business Overview Exchange / Ticker NYSE : "RSO" 144A Offering March 2005 $214.8 million Initial Public Offering - February 2006 27.6 million Follow-on Offering - December 2006 103.0 million Market Capitalization (1) 296.5 million Trust preferred - May / September 2006 50.0 million Investment Portfo
Slide 3: Resource Capital Corporation
Resource Capital Corporation A commercial finance business structured as a REIT with substantial focus on commercial mortgage investments as well as commercial loans Provides high value, customized financing solutions Whole loans B notes Mezzanine loans Bank loans Small business loans and leases Sta
Slide 4: RCC - Investment Highlights
RCC - Investment Highlights Attractive Returns Declared Q3 2007 dividend of $0.41, an annualized $1.64 run rate High Yielding Portfolio $2.4 billion portfolio with an average yield of 7.7% Predominantly secured commercial mortgages and rated secured corporate loans (over 90%) Match Funding Principle
Slide 5: RCC - Accomplishments
RCC - Accomplishments Built Out Origination Platform Bolstered capability to originate commercial real estate loans through addition of senior originators Have opened Los Angeles Office to focus on originating loans west of Denver Have continued to add originators and asset managers in NY, Philadelp
Slide 6: Commercial RE Mortgage Platform
Commercial RE Mortgage Platform Commercial real estate and net lease market $3+ trillion Portfolio of approximately $1 billion at 09/30/07 Approximately 71% of common equity and proceeds from TRUPS invested into Commercial RE Originated over $1 billion in loans since 7/1/06 Closed Two Commercial Rea
Slide 7: Power of the RRE Platform: Sourcing Capability
Power of the RRE Platform: Sourcing Capability Well over $4 billion in investments made RRE has deep knowledge of all major U.S. markets Strong relationships Deep relationships with borrowers, middle-market contacts and high-end brokers Established relationships bring repeat business Ability to cust
Slide 8: RCC Real Estate Team
RCC Real Estate Team As in its other businesses, Resource America has developed a strong team with extensive experience in the commercial real estate sector:
Slide 9: Originated Loans vs. Investments
Originated Loans vs. Investments
Slide 10: Recent Developments in the Commercial Mortgage World
RECENT DEVELOPMENTS IN THE COMMERCIAL MORTGAGE WORLD Since late July the commercial mortgage market has adjusted significantly Bond buyers for CMBS transactions have pulled-back significantly - Issuers are holding billions of dollars of CMBS There are signs that fixed rate buyers are returning, albe
Slide 11: Examples of Market Changes
EXAMPLES OF MARKET CHANGES Spreads have increased by between 100 and 150 basis points Return of full origination and exit fees and components of recourse Full interest, capital expenditure and other reserves factored into total loan with rebalancing and additional equity requirements Newly originate
Slide 12: Return on Equity
Return on Equity Actual results through Q2 2007 Actual results through Q2 2007 Actual results through Q2 2007 Portfolio Equity / Trups Invested Leverage ROE CMBS/RMBS/ABS 7% 13.9x 20.60% CRE Loans 57% 3.8x 14.9% Cash 6% 0.0x 5.20% CMBS 9% 7.0x 11.1% Bank Loans 20% 11.4x 22.00% Leasing Assets 1% 22.9
Slide 13: Return on Equity After Balance Sheet Optimization
Return on Equity After Balance Sheet Optimization After Balance Sheet Optimization After Balance Sheet Optimization Portfolio Equity / Trups Invested Leverage ROE CMBS/RMBS/ABS 7% 13.9x 20.60% CRE Loans 57% 4.2x 16.10% Cash 6% 0.0x 5.20% CMBS 9% 7.0x 14.00% Bank Loans 20% 11.4x 24.00% Leasing Assets
Slide 14: Liquidity at 9/28/07 (Unaudited)
Liquidity at 9/28/07 (Unaudited) Description Amount (in Millions) Unrestricted cash balances $15.3 Undrawn capacity under an unsecured revolving credit facility 12.6 Undrawn capacity under a non-recourse term facility 5.0 Undrawn capacity under a secured term facility 18.6 Proforma unrestricted cash
Slide 15: Book Value / Mark-to-Market at 6/30/07
Book Value / Mark-to-Market at 6/30/07 (in thousands) Description Limited Recourse Basis GAAP Common Stock (par value $0.001) 25 25 Additional paid-in capital 356,774 356,774 Offering proceeds, net $356,799 $356,799 Other Comprehensive income - ABS portfolio mark (27,000) (52,626) ABS derivative 341
Slide 16: Equity Composition Trends
Equity Composition Trends Equity Composition Trends
Slide 17: Illustrative Portfolio Mix
Illustrative Portfolio Mix Mlustrative Fully Deployed Portfolio Mix Asset Allocation Equity Allocation The flexibility of the Resource America platform provides access to attractive investments across a variety of economic environments
Slide 18: Resource America Relationship
Resource America Relationship Resource Capital is externally managed by a subsidiary of Resource America (Nasdaq:REXI) Resource America is a specialized asset management company that uses industry specific expertise to generate and administer investment opportunities for its own account and for outs