Ares Commercial Real Estate Corporation · NYSE:ACRE
Ares Commercial Real Estate — Q3 2019 Earnings Presentation
16 slides from Ares Commercial Real Estate's earnings presentation, Nov 8, 2019
Slide 1: Third Quarter 2019 Earnings Presentation
Exhibit 99.2 Third Quarter 2019 Earnings Presentation
Slide 2: Important Notice
Important Notice Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended, which may relate to future events or the future performance or financ
Slide 3: Third Quarter 2019 Highlights
Third Quarter 2019 Highlights Financial • GAAP Earnings of $9.0 million or $0.31 per diluted common share • Core Earnings(1) of $9.7 million or $0.34 per diluted common share Results • Book value per diluted common share of $14.75 • Closed five senior loans totaling $193.4 million in commitments Loa
Slide 4: Third Quarter 2019 Investment Activity
Third Quarter 2019 Investment Activity Third Quarter 2019 Characteristics of Funded Loans(6) Loans Summary Industrial ($ in millions) 8% Student Housing Number of loans closed 5 15% New loan commitments $193.4 Average size of loans closed $38.7 Percentage of floating rate loans 100% Percentage of se
Slide 5: Total Loans Held for Investment Portfolio Key Statistics
Total Loans Held for Investment Portfolio Key Statistics Loan Portfolio Characteristics(5) ($ in millions) Total loan commitments at closing $1,775.5 Mid-Atlantic/Northeast Outstanding principal balance $1,548.2 6% Weighted average unpaid principal balance of loan portfolio* $1,512.6 Southwest Total
Slide 6: Interest Rate Sensitivity
Interest Rate Sensitivity(5) • 97% of the loan portfolio is floating rate and 3% is fixed rate • 95% of the loan portfolio is either floating rate with a LIBOR floor (92%) or fixed rate (3%) ◦ For the floating rate loans with LIBOR floors, the weighted average LIBOR floor is 1.69% • 54% of the loan
Slide 7: Financing Sources Overview
Financing Sources Overview Financing Sources Composition(5) Financing Sources Detail Bank Facilities/Insurance ($ in millions) 50% Term Loan Total (3) Outstanding Financing Sources Commitments Interest Rate Balance Bank Facilities 2017-FL3 Securitization Wells Fargo Facility $ 500.0 LIBOR+1.50 to 2.
Slide 8: Dividend Summary
Dividend Summary Quarterly Dividend Since Q1-16 $0.35 $0.33 $0.33 $0.33 $0.33 $0.33 $0.31 $0.31 $0.29 $0.29 $0.28 $0.28 $0.27 $0.27 $0.27 $0.27 $0.27 $0.26 $0.26 $0.26 $0.26 $0.25 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19* * Declared a fourth qua
Slide 9: Appendix
Appendix O ARES
Slide 10: Loans Held for Investment Portfolio Details
Loans Held for Investment Portfolio Details ($ in millions) Origination Current Loan Outstanding LIBOR Unleveraged Payment # Loan Type Location Date Commitment Principal Carrying Value Interest Rate Floor Effective Yield(2) Maturity Date Terms(9) Multifamily Loans: 1 Senior FL Sep 2016 $89.7 $89.7 $
Slide 11: Loans Held for Investment Portfolio Details
Loans Held for Investment Portfolio Details ($ in millions) Origination Current Loan Outstanding LIBOR Unleveraged Payment # Loan Type Location Date Commitment Principal Carrying Value Interest Rate Floor Effective Yield(2) Maturity Date Terms(9) Office Loans: 21 Senior IL Nov 2017 $82.0 $67.4 $67.1
Slide 12: Loans Held for Investment Portfolio Details
Loans Held for Investment Portfolio Details ($ in millions) Origination Current Loan Outstanding LIBOR Unleveraged Payment # Loan Type Location Date Commitment Principal Carrying Value Interest Rate Floor Effective Yield(2) Maturity Date Terms (9) Residential/Condominium Loans: 41 Senior CA Jan 2018
Slide 13: Consolidated Balance Sheets
Consolidated Balance Sheets As of ($ in thousands, except share and per share data) 9/30/2019 12/31/2018 ASSETS Cash and cash equivalents $ 5,952 $ 11,089 Restricted cash 379 379 Loans held for investment ($521,489 and $289,576 related to consolidated VIEs, respectively) 1,538,393 1,524,873 Real est
Slide 14: Consolidated Statements of Operations
Consolidated Statements of Operations For the Three Months Ended ($ in thousands, except share and per share data) 9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018 Revenue: Interest income from loans held for investment $ 28,269 $ 29,993 $ 27,986 $ 30,882 $ 30,362 Interest expense (15,124) (16,675
Slide 15: Reconciliation of Net Income to Non-GAAP Core Earnings
Reconciliation of Net Income to Non-GAAP Core Earnings(1) For the Three Months Ended ($ in thousands, except per share data) 9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018 Net income attributable to common stockholders $ 9,034 $ 9,755 $ 8,543 $ 10,018 $ 9,957 Stock-based compensation 479 427 492
Slide 16: Footnotes
Footnotes 1. The Company believes the disclosure of Core Earnings provides useful information to investors regarding the calculation of incentive fees the Company pays to its manager, Ares Commercial Real Estate Management LLC, and the Company’s financial performance. Core Earnings is an adjusted no
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