Acres Commercial Realty Corp. · NYSE:ACR
Acres Commercial Realty — Resource Capital — JMP Conference (May 2010)
17 slides from Acres Commercial Realty's conference presentation, May 10, 2010
Slide 1: Resource Capital Corp. JMP Conference Company Presentation
Resource Capital Corp. JMP Conference Company Presentation May 10, 2010
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements that involve risks and uncertainties. These forward-looking statements are not historical facts but rather are based on current beliefs, assumptions and expectations. These beliefs, assumptions and expectations can change as a result
Slide 3: Business Overview
Business Overview Ø Exchange / Ticker NYSE : “RSO” Ø 144A Offering March 2005 $214.8 million Ø Market Capitalization 1 $309.3 million Ø Trust preferred - May / September 2006 $50.0 million Ø Investment Portfolio as of 3/31/2010 $1.8 billion Ø Formed in 2005 - have paid 23 consecutive quarters of a c
Slide 4: Resource Capital Corp.
Resource Capital Corp. Ø A commercial finance business structured as a REIT with substantial focus on commercial mortgage investments as well as commercial loans Ø Provides customized financing solutions • Whole loans • B notes • Mezzanine loans • Bank loans • Small business loans and leases Ø Commi
Slide 5: Well Positioned
Well Positioned Ø All RSO Real Estate Portfolios and Corporate Lending Portfolios continue to pay all classes according to their terms and are in compliance with OC and IC tests as of 3/31/2010 – 2 real estate portfolios generated cash flow of $33.7 million in 2009 – 3 corporate loan portfolios gene
Slide 6: Strong Management and Large Team that Can Deliver Solutions
Strong Management and Large Team that Can Deliver Solutions Resource Capital Corp. CORPORATE LENDING TEAM REAL ESTATE TEAM – Dedicated team of 12 professionals bolstered by 35 additional professionals at Resource Real Estate – Management team has worked together for over 10 years – The team is exper
Slide 7: Management and origination team
Jonathan Z. Cohen President & CEO Steven J. Kessler Chairman, Resource Capital Corp. Joan Sapinsley Managing Director Debt Origination 10 Additional Professionals Dedicated to Commercial Real Estate Lending 35 Additional Professionals Dedicated to Commercial Real Estate Property Acquisitions and Ass
Slide 8: Established Real Estate History
Established Real Estate History § Resource Real Estate has a history dating back 1991 and has a track record of investing through market cycles with investments in major urban areas throughout the United States § Resource Real Estate has sourced and invested in over $5 billion of real estate opportu
Slide 9: Direct Origination Differentiates
Direct Origination Differentiates Ø Real estate whole loans originated and underwritten by Manager – Maximizes security and ability to control the asset – Direct access to borrower – Provides unique insight into ongoing credit quality Ø Assets remain on RSO balance sheet – Not dependent on secondary
Slide 10: Dedicated and Experienced Bank Loan Team in The U.S. and Europe
Dedicated and Experienced Bank Loan Team in The U.S. and Europe Jonathan Z. Cohen President & CEO Gretchen Bergstresser President, Senior PM (U.S) Fred Colen Senior Analyst 6 Additional Professionals Dedicated to The Bank Loan Team Oscar Anderson PM, Fund COO Vincent Ingato PM Phillip Raciti Senior
Slide 11: Bank Loan Portfolio at 3/31/2010
Bank Loan Portfolio at 3/31/2010 Ø $869.0 million carrying value ($906.0 million amortized cost net of $11.9 million allowance and $25.1 million unrealized MTM on loans and securities) Ø Weighted average interest rate of bank loan portfolio LIBOR + 2.70% and weighted average cost LIBOR + 0.47%, resu
Slide 12: Benefits From Repurchase of Real Estate and Corporate Loan Debt
Benefits From Repurchase of Real Estate and Corporate Loan Debt Recent Repurchases Ø In FY 2010, RSO repurchased $46.9 million of its corporate notes for $29.7 million – 37% discount to par – $17.1 million gain – Return of 58% on repurchase price (1) Benefits § Reduces RSO liabilities and deleverage
Slide 13: Summary Balance Sheet
Summary Balance Sheet ($ in 000's) 3/31/2010 Balance Cash and equivalents $ 27,650 Restricted cash 82,176 Investments 82,883 Loans pledged as collateral 1,555,593 Loans held for sale 2,376 Other assets 34,467 Total Assets $ 1,785,145 CRE Debt 567,293 Bank Loan Debt 898,489 TRUPS 51,548 Derivatives a
Slide 14: Liquidity at 3/31/2010
Liquidity at 3/31/2010 Description Amount (in Millions) Unrestricted cash balances $27.6 Restricted cash available for investment 73.3 Restricted cash in margin call and other accounts 8.9 Subtotal restricted cash 82.2 Total cash as of March 31, 2010 $109.8
Slide 15: Economic Book Value at 3/31/2010
Economic Book Value at 3/31/2010 Description As of 3.31.10 Stockholders' equity - GAAP 239,647 Add: Unrealized losses - CMBS Portfolio 46,869 Unrealized losses recognized in excess of value at risk - Interest Rate Swaps 13,277 Unrealized net accretion of bank loans purchased at a discount 32,845 Eco
Slide 16: Why Resource Capital?
Why Resource Capital? § Balance sheet repositioned for economic climate § Portfolio that continues to perform through tough market conditions § Integrated commercial finance platform focused on origination of commercial mortgage investments § Experienced management team with a long track record in c
Slide 17: Resource Capital Corp. May 2010
Resource Capital Corp. May 2010