Acres Commercial Realty Corp. · NYSE:ACR
Acres Commercial Realty — Investor Presentation (August 2021)
25 slides from Acres Commercial Realty's investor presentation, August 2021
Slide 1: ACRES Commercial Realty Corp. Investor Presentation
ACRES Commercial Realty Corp. Investor Presentation August 2021
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws. These forward-looking statements are not historical facts but rather are based on our current beliefs, assumptions and expectations. These beliefs, assumptions and expectat
Slide 3: Forward Looking Statements (continued)
Forward Looking Statements (continued) We undertake no obligation, and specifically disclaim any obligation, to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In light of these risks and uncerta
Slide 4: Presenters
Presenters Andrew Fentress Mark Fogel Chairman of the Chief Executive Board Officer & President 4
Slide 5: Highlights
Highlights 1 ACR Overview 2 Manager Overview 3 Best-in-Class Investment Portfolio 4 Conservative Liability Management 5
Slide 6: ACR Overview
ACRES COMMERCIAL REALTY ACR Overview
Slide 7: ACR Overview
ACR Overview Best In Class Fully Integrated with ACRES Conservative Balance Sheet CRE Portfolio Capital $1.6bn $2.4bn 25 years Investment Portfolio Financing Capacity Average Lending Experience of Founders 99% 76% 94% $3.0bn Multifamily & Non-Recourse, Non-Mark-to-Market Senior Loans Assets Under Ma
Slide 8: Manager Overview
ACRES COMMERCIAL REALTY Manager Overview
Slide 9: ACRES Overview
ACRES Overview ACRES Capital is a private commercial real estate lender that provides financing solutions nationwide $3.0 Billion1 in firm AUM Global investor base $10 to $100 Million First-lien Mortgage Loans Experienced Team Successfully invested through the Global Financial Crisis SEC Registered
Slide 10: Evolution of Manager of ACRES
Evolution of Manager of ACRES Rebrand REIT from Exantas to ACRES ACRES MassMutual ACRES Commercial Strategy 1-4 ACRES 6th Facility approved Realty Corp. Strategy as manager of Exantas 2014 2016 2017 2018 2019 2020 2021 Oaktree CLO 9 Originations Execution begin Investment ACRES 5th ACRES 7th Strateg
Slide 11: ACRES Investment Philosophy
ACRES Investment Philosophy Investment Basis High-Quality Compelling Sponsorship Credit Metrics Conservative / Business Plan Multiple Viable Viability Exit Strategies Asset Management Risk Approach to Management Underwriting 11
Slide 12: Investment Process & Market Opportunity
Investment Process & Market Opportunity ACRES screens a pipeline of over $70 billion each year1 # of Loan Loan Opportunities Volume Over 2,200 100% Screened 1,100 50% 60 – 100 Target Loan 2% - 4% Closings Market Opportunity U.S. CRE market representing approx. 40% of GDP The large market provide
Slide 13: Best-in-Class Investment Portfolio
Best-in-Class Investment Portfolio
Slide 14: CRE Loan Portfolio
CRE Loan Portfolio Balance by Region1 Property Type1 Office, 15.5% Pacific Multifamily, Northeast Hotel, 13.0% East 60.8% 12.5% 11.6% West North North Central Central Mountain 1.6% 7.4% Mid Self-Storage, 6.5% 18.4% Atlantic 13.2% Retail, 4.7% Southeast Manufactured Housing, 0.9% 18.3% Southwest 15.6
Slide 15: CRE Loan Portfolio Overview
CRE Loan Portfolio Overview All floating-rate loans except 1 have LIBOR floors in excess of the current LIBOR rate on a weighted average basis $ in Millions Jun. 30, 2021 (88 loans) CRE whole loans and other, floating-rate1 $1,559 CRE mezzanine loan 5 Total loans held for investment amortized cost
Slide 16: Deployment Progress
Deployment Progress CRE Loan Production, at Par Highlights $ in Millions ACR originated 18 CRE whole 2nd Quarter 2021 loans during the 2nd quarter of 2021 New CRE floating-rate loan commitments $470.2 Collateral Type: Sales, payoffs and paydowns1 (353.2) 14 of the 18 CRE whole loans Future fundi
Slide 17: Production, Payoff and Paydown Detail
Production, Payoff and Paydown Detail New Loan Production W. Avg. Coupon Rate Commitments Multifamily (14 Loans) 1M L + 3.47% $401.3 Hotel (2 Loans) 1M L + 6.30% $35.6 Office (1 Loan) 1M L + 5.00% $25.0 Self-Storage (1 Loan) 1M L + 5.25% $8.3 W. Avg./Total 1M L + 3.81% $470.2 W. Avg. Months W. Avg.
Slide 18: CRE Loan Portfolio Risk Ratings
CRE Loan Portfolio Risk Ratings 89% of ACR’s loans have a risk rating of 2 or 3 that are performing in line or near underwritten expectations All but two of ACR’s 88 CRE loans are current on contractual payments through June 2021 Percentage of Principal at June 30, 2021 Percentage of Principal a
Slide 19: Conservative Liability Management
Conservative Liability Management
Slide 20: Summary Capitalization
Summary Capitalization $1.0 billion of availability on its term warehouse, senior financing facilities and senior unsecured notes Low net recourse debt to book equity plus preferred of 0.5x and total net debt to book equity plus preferred of 2.8x1 $ in Millions Capitalization at June 30, 2021 Ma
Slide 21: Liquidity at July 31, 2021
Liquidity at July 31, 2021 ($ in Millions) $75.0 $243.1 $(40.0) $118.1 $90.0 Unrestricted Cash CRE Term CRE and TermSenior Senior Unsecured Working Capital Net Liquidity Secured Facilities and Senior Notes Availability Reserve Estimated SecuredUnfinanced Facilities… Proceeds1 1. CRE term and senior
Slide 22: Conclusion
Conservative Conclusion Capitalization & Liquidity
Slide 23: Highlights
Highlights 1 ACR Overview: Conservative and growing middle market, light-transitional, senior loan portfolio 2 Manager Overview: Experienced management team with intensive asset management acumen focused on growing middle market senior loan portfolio ACRES Capital has successfully grown its pl
Slide 24: Appendix
Conservative Appendix Capitalization & Liquidity
Slide 25: ACRES Team Organization
ACRES Team Organization Marty Reasoner* Mark Fogel* Andrew Fentress* Managing Partner CEO/President, ACRES Capital Managing Partner, ACRES Capital ACRES Capital President, ACRES Commercial Realty Chairman, ACRES Commercial Realty Originations & Credit / Underwriting / Legal & Finance Operations Busi
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