Acres Commercial Realty Corp. · NYSE:ACR
Acres Commercial Realty — Resource Capital — Investor Presentation (September 2014)
20 slides from Acres Commercial Realty's investor presentation, Sep 30, 2014
Slide 1: Resource Capital Corp. September 2014
Resource Capital Corp. September 2014 Exhibit 99.1
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 res
Slide 3: Business Overview
Business Overview Exchange / Ticker Business Structure Total Market Capitalization (1) Investment Portfolio (2) Dividend paid (3) (1) Reflects common and preferred equity as of August 20, 2014 (2) As of June 30, 2014 (3) Paid last quarter NYSE: "RSO" REIT $970 million $2.6 billion $0.20/share
Slide 4: Resource Capital Corp. Overview
Resource Capital Corp. Overview RSO is a REIT primarily focused on originating, underwriting and investing in transitional commercial real estate mortgage loans Approximately $2.6 billion in assets as of June 30, Provides customized financing solutions throughout the US to commercial real estate bor
Slide 5: Powerful and Established CRE Platform
Powerful and Established CRE Platform Powerful core real estate platform and established management team in origination, acquisition, asset management and securitization of real estate debt and debt securities Dedicated team of 14 professionals bolstered by 35 additional professionals at Resource Re
Slide 6: Slide 6
Slide 7: Real Estate Loan Originations By Year
Real Estate Loan Originations By Year * Note: 2014 values are through September 30, 2014, including loans closed and in process of closing. 2014* CAGR= 200 %
Slide 8: Origination and Underwriting Process
Origination and Underwriting Process Originators in New York and Los Angeles generate new real estate investments Lead originator and underwriting team conduct preliminary due diligence (property level review, financial considerations) Lead originator prepares Final Investment Memo for Investment Co
Slide 9: CRE Loan Portfolio Details
CRE Loan Portfolio Details Substantial portfolio diversification supports our strong credit performance Total CRE Loan Portfolio by Property Type * As of 6/30/2014; note percentages may not sum to 100% due to rounding. Total = $1,043 mm Multifamily 42% Hotel 19% Retail 17% Office 15% Mixed Use 3% In
Slide 10: CRE Loan Financing
CRE Loan Financing Loans are currently financed on a $250 million term financing facility with Wells Fargo Bank and a $200 million term financing facility with Deutsche Bank Returned to the securitization market in December of 2013 and again in July 2014, which allows RSO’s assets to be match funded
Slide 11: CRE portfolio by loan type
CRE portfolio by loan type Total $1.04 billion Portfolio shown as of 6/30/2014 Mezzanine loans 7% B notes 1% Whole loans 92%
Slide 12: CMBS Activities
CMBS Activities RSO has a dedicated CMBS team that manages a portfolio of approximately $330 million • CMBS AAA bonds are financed on a $100 million term facility with Wells Fargo • CMBS bonds are used as cash substitute and for opportunistic purchases • The duration of the majority of the CMBS port
Slide 13: Historical Net Charge-offs of RSO vs. Peers
Historical Net Charge-offs of RSO Real Estate and CMBS Investments vs. Peers 0.02% 0.41% 3.30% 3.47% 1.28% 1.68% 0.08% 0.92% 5.05% 9.07% 3.56% 6.51% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% RSO Peer mean* *Source: SNL * Peer mean includes Arbor Realty Trust (ABR), Gramercy Capital Corp. (GKK), Northstar Re
Slide 14: Leveraged/Middle Market Loans & Commercial Finance
Leveraged/Middle Market Loans & Commercial Finance
Slide 15: Corporate/Middle Market Loan Portfolio
Corporate/Middle Market Loan 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 Co
Slide 16: Bank Loan Portfolio Details
Bank Loan Portfolio Details Substantial portfolio diversification supports our strong credit performance Total Bank Loan Portfolio by Industry Total = $758 mm * As of 6/30/2014 Healthcare, Education and Childcare Diversified/Conglomerate Service Broadcasting and Entertainment Automobile Chemicals, p
Slide 17: Company Summary
Company Summary
Slide 18: RSO Portfolio
RSO Portfolio Commercial Real Estate Leveraged Loans Other Credit Opportunities Types of Assets • Commercial Mortgages • Senior Whole Loans • Mezzanine Loans • CMBS • Structured Investments in Real Estate • Equity Investments in Real Estate • Corporate Bank Loans covering a wide array of industries
Slide 19: 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 $87.1 million of its CDO notes at a 21% discount t
Slide 20: RSO Highlights
RSO Highlights Maintained a cash dividend and paid $10.72 in dividends since inception in March Powerful core platforms and established management teams in real estate lending and broadly syndicated corporate loans Cleaned up balance sheet and brought leverage down from a high of 10.0x to 1.7x as of
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