Acres Commercial Realty Corp. · NYSE:ACR
Acres Commercial Realty — Resource Capital — FBR Capital Markets Fall Investor Conference 2008
18 slides from Acres Commercial Realty's conference presentation, Dec 3, 2008
Slide 1: Resource Capital Corp. FBR Capital Markets Fall Investor Conference
Resource Capital Corp. FBR Capital Markets Fall Investor Conference December 3, 2008 Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Some of the statements in this presentation constitute forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not his
Slide 3: Business Overview
Business Overview Exchange / Ticker NYSE : “RSO” 144A Offering March $214.8 million Initial Public Offering – February 27.6 million Follow-on Offering – December 103.0 million Market Capitalization (1) 59.5 million Trust preferred – May / September 50.0 million Investment Portfolio 2.0 billion Exter
Slide 4: Resource Capital Corporation
Resource Capital Corporation A commercial finance business structured as a REIT with substantial focus on commercial mortgage investments as well as commercial loans Provides high value, customized financing solutions Whole loans B notes Mezzanine loans Bank loans Small business loans and leases Sta
Slide 5: Stable Financial Performance
REIT Taxable Earnings ($ in millions) Dividends Declared Per Share Dividends Declared / Beginning Book Value (annualized) $0.39 $0.41 $0.41 $0.41 $0.41 $0.41 $0.39 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 15.8% 15.2% 13.9% 23.5% 14.2% 11.7% 16.4% 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 $9.4 $10.5 $10.9 $11.4 $
Slide 6: RCC – Investment Highlights
RCC – Investment Highlights Attractive Returns • Declared Q3 2008 dividend of $0.39, 2008 YTD total payout of $1.21 High Yielding Portfolio • $2.0 billion portfolio with an average yield of 6.5% (for the nine months ended September 30, 2008) • Predominantly secured commercial mortgages and rated sec
Slide 7: Commercial RE Mortgage Platform
Commercial RE Mortgage Platform Commercial real estate and net lease market $3+ trillion Portfolio of approximately $865 million (including CMBS) at 09/30/08 Approximately 73% of common equity and proceeds from TRUPS invested into Commercial Real Estate (“CRE”) Originated approximately $2.0 billion
Slide 8: Power of the RRE Platform: Sourcing & Asset Mgmt. Capability
Power of the RRE Platform: Sourcing & Asset Mgmt. Capability *Multiple property portfolio investments excluded. RAI Offices Real Estate Equity Investments Distressed Real Estate Debt Investment Performing Real Estate Debt Investments*
Slide 9: RCC Real Estate Team
RCC Real Estate Team As in its other businesses, Resource America has developed a strong team with extensive experience in the commercial real estate sector: Edward E. Cohen Chairman Jonathan Z. Cohen President & CEO Steven J. Kessler CFO of RAI Joan Sapinsley Managing Director Debt Origination 10 A
Slide 10: CRE Portfolio Diversity
CRE Portfolio Diversity Office 22% Multifamily 31% Other 6% Hotel 27% Retail 14% 222.2 MM Hotel $834.1 MM TOTAL 49.4 MM Other 119.1 MM Retail 182.7 MM Office $260.7 MM Multifamily Total Portfolio Holding Value Based on total loan commitments as of November 6, 2008
Slide 11: CRE Portfolio Diversity
CRE Portfolio Diversity Mezz 24% Whole Loan 65% B Note 11% $834.1 MM TOTAL 89.1 MM B note 198.0 MM Mezzanine Loan $547.0 MM Whole loan Total Portfolio Holding Value Based on total loan commitments as of November 6, 2008
Slide 12: Current Market Dynamics
CURRENT MARKET DYNAMICS The 10 year fixed rate CMBS quote is still largely absent from the market Loan amounts, pricing and terms have all changed with a much more conservative approach across the board Loan spreads continue to be dramatically wide Very low transaction volumes in the new acquisition
Slide 13: Liquidity at 11/30/08
Amount (in Millions) Description Liquidity at 11/30/08 $76.0 Proforma total cash 11.1 Restricted cash in margin call and other accounts 26.8 Restricted cash available for investment 8.7 Capacity for future funding obligations under the 2007 CRE CDO $29.4 Proforma unrestricted cash 4.8 Undrawn capaci
Slide 14: Economic Book Value at 9/30/08
As of 9.30.08 Description Economic Book Value at 9/30/08 ($ in thousands) $ 10.92 Economic Book Value Per Share 25,296,164 Shares outstanding as of September 30, 2008 276,183 Economic Book Value 12,885 Unrealized losses recognized in excess of value at risk – Interest Rate Swaps 24,197 Unrealized lo
Slide 15: Return on Equity by Asset Class
ROE Leverage Equity / Trups Invested Portfolio Return on Equity (before provisions for loan losses) 17.9% 100% Aggregate (gross return) 29.1% 15.6x 1.9% Leasing Assets Net of Tax 23.5% 11.4x 23.9% Bank Loans 5.7% 0.0x 3.6% Cash and Margin Calls 16.34% 3.0x 70.6% CRE Loans and CMBS Based on actual re
Slide 16: Equity Composition Trends
Equity Composition Trends 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Commercial RE Loans CMBS ABS - RMBS Bank Loans Leasing
Slide 17: Illustrative Portfolio Mix as of 9/30/08
Illustrative Portfolio Mix as of 9/30/08 Asset Allocation Equity Allocation Commercial RE-Related, 44% Commercial Finance, 52% Cash, 4% Commercial Real Estate, 73% Commercial Finance 25% Leasing, 2% The flexibility of the Resource America platform provides access to attractive investments across a v
Slide 18: Resource America Relationship
Resource Financial Fund Management Ischus Capital (MBS/ABS) 9 Funds, $5.9 billion under management Trapeza Capital (Bank Trust Preferred) 13 Funds, $5.0 billion under management Apidos Capital (Bank Loans) 12 Funds, $3.9 billion under management Resource Europe Management (Bank Loans) 1 Fund, $459 m
Resource Capital — FBR Capital Markets Fall Investor Conference 2008 on 6ix