Acres Commercial Realty Corp. · NYSE:ACR
Acres Commercial Realty — Resource Capital — Investor Presentation (November 2012)
14 slides from Acres Commercial Realty's investor presentation, Nov 13, 2012
Slide 1: Resource Capital Corp. November 2012
* * * Resource Capital Corp. November 2012
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 our current beliefs, assumptions and expectations. These beliefs, assumptions and expectations can change as a
Slide 3: Business Overview
* Business Overview Reflects share price of $5.92 as of November 5, 2012 and total shares outstanding as of November 5, 2012 As of September 30, 2012 As of September 30, 2012 with total shareholder equity of $587.5 Million Exchange / Ticker NYSE: "RSO" Business Structure REIT Market Capitalization(1
Slide 4: Resource Capital Corp. Overview
RSO is a commercial finance business structured as a REIT with substantial focus on commercial real estate mortgage investments as well as commercial loans and leases Approximately $2.3 billion in assets as of September 30, 2012 We provide customized financing solutions: Portfolio consists predomina
Slide 5: RSO Highlights Since the Financial Crisis
Cleaned up balance sheet and brought leverage down from a high of 10.0x to 2.9x as of September 30, 2012 Maintained a cash dividend throughout the downturn and paid $6.17 in cash dividends since June 2007 Increased and diversified investments in real estate lending, corporate loans and CMBS Signific
Slide 6: Powerful and Established Core Platform
* Powerful and Established Core Platform REAL ESTATE TEAM CORPORATE LENDING & COMMERCIAL FINANCE TEAMS Dedicated team of 12 professionals led by Dave Bloom bolstered by 35 additional professionals at Resource Real Estate Management team has worked together for over 10 years – we still have the same
Slide 7: Business Portfolios
Business Portfolios Commercial Real Estate Leveraged Loans Other Credit Opportunities Types of Assets Commercial Mortgages Senior Whole Loans Mezzanine Loans CMBS Structured Investments in Real Estate Corporate Bank Loans covering a wide array of industries and ABS Preferred equity stake in Leasing
Slide 8: CMBS market re-emergence and commercial real estate lending conditions
* In the last two years the CMBS market re-emerged and after some early pull-backs, it has stabilized and is seeing year over year growth Although there are fewer conduit programs, CMBS lenders are actively quoting deals Leverage amounts, pricing and terms have all changed with a more conservative a
Slide 9: Bridge Financing – Acquisition and Refinance
* Bridge Financing – Acquisition and Refinance RSO’s two CDOs reached their respective reinvestment cutoffs fully invested; new loans are being term financed on a $150 million financing facility with Wells Fargo Bank Since the beginning of 2012, RSO has closed nine new loans totaling approximately $
Slide 10: Additional CRE Activities
Additional CRE Activities * Starting in early 2011 and continuing into Q3-2012, RSO has been very active buying highly rated CMBS – aggregate CMBS purchases in 2011 and through Q3-2012 totaled $174.6 million $100 million term CMBS facility and an additional CMBS repurchase facility with Wells Fargo
Slide 11: Corporate Loan Market and Portfolio
* Corporate credit fundamental picture is healthy Default rates are low and are projected to stay low Leverage multiples are staying intact New Issue CLO activity Better performing managers have access to the market again Through RCAM, a subsidiary of RSO, the Company receives senior, subordinated a
Slide 12: RSO's Targeted Investment in Specialty Commercial Finance
* RSO’s Targeted Investment in Specialty Commercial Finance A private equity firm, Eos Partners, L.P., invested $50 million in LEAF Commercial Capital (“LCC”), which operates an equipment lease and note origination, servicing and financing business, and received 50,000 shares of Series A Preferred S
Slide 13: Clean Balance Sheet
* Clean Balance Sheet Leverage Since 12/31/08 During FY 2010, RSO repurchased $46.9 million of its CDO notes at a 37% discount to par During FY 2011, RSO repurchased $10.0 million of its CDO notes at a 39% discount to par During FY2012 RSO repurchased $60.3 million of its CDO notes at a 11% discount
Slide 14: RSO Highlights
Maintained a cash dividend and paid $9.32* in dividends since inception in March 2005 Powerful core platforms and established management teams in real estate, corporate lending and commercial finance Cleaned up balance sheet and brought leverage down from a high of 10.0x to 2.9x as of September 30,
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