Acres Commercial Realty Corp. · NYSE:ACR
Acres Commercial Realty — Q4 2020 Earnings Presentation
29 slides from Acres Commercial Realty's earnings presentation, Mar 4, 2021
Slide 1: Fourth Quarter 2020 Earnings Presentation
ACRES Commercial Realty Corp. Fourth Quarter 2020 Earnings Presentation March 4, 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: Company Rebrand
Company Rebrand Exantas Capital Corp. is now NYSE: ACR (Common Stock); ACRPrC (Preferred Stock) www.acresreit.com ACRESREIT.COM 4
Slide 5: Recent Highlights
Recent Highlights1 ACR restarted CRE2 loan originations in November 2020 CRE Loan Originations Reverse Stock Split Robust Liquidity Restarted Effective $150M $83M One-for-Three of net liquidity, including of CRE loan originations were unrestricted cash, CRE term reverse stock split of common facil
Slide 6: Extension of Share Repurchase Program
Extension of Share Repurchase Program On March 2, 2021, the Board of Directors authorized and approved the extension of the Company’s existing share repurchase program, which authorizes the Company to repurchase up to $20 million of the currently outstanding shares of the Company’s common stock th
Slide 7: Results for Quarter and Year Ended December 31, 2020
Results for Quarter and Year Ended December 31, 2020
Slide 8: Three Mos. And Year Ended Dec. 31, 2020 Results and Recent Developments
Three Mos. And Year Ended Dec. 31, 2020 Results and Recent Developments GAAP net income (loss)3: $1.95 and $(19.33), respectively GAAP net income4 includes a $1.70 reversal of CECL3 reserves in connection with: the projected improvement of macroeconomic factors; and Financial Results the rev
Slide 9: Fourth Quarter 2020 Book Value
Fourth Quarter 2020 Book Value GAAP Book Value per Share Walk $0.41 $20.57 $2.02 $0.04 $18.10 GAAP GAAP Book BookValue Value --Sep. Sep.‘20 '209 GAAP Net GAAP Net Income Income10 OCI OCI11 Stock StockRepurchases Repurchases12 GAAPBook GAAP BookValue Value -- Dec. Dec. '20 ‘209 ACRESREIT.COM 9
Slide 10: CRE Loan Activity and Portfolio
CRE Loan Activity and Portfolio
Slide 11: Deployment Progress
Deployment Progress CRE Loan Production, at Par Highlights16 $ in Millions 4th Quarter ACR restarted its loan originations in November 2020 2020, originating five CRE whole loans in the fourth quarter of 2020 New CRE floating-rate loan ACRES17 Pipeline vs. New Borrowers: $83.4 commitments Three
Slide 12: CRE Loan Performance
CRE Loan Performance All but two loans (representing 2%18) of ACR’s 98 CRE loans are current on debt service payments through January 2021 ACR executed extensions on 10 CRE loans that became effective during the fourth quarter of 2020 and January 2021 CRE Loan Modifications as of January 31, 202
Slide 13: CRE Loan Portfolio Overview
CRE Loan Portfolio Overview All floating-rate loans have LIBOR floors in excess of the current LIBOR rate on a weighted average basis $ in Millions Dec. 31, 2020 Sep. 30, 2020 Jun. 30, 2020 Mar. 31, 2020 (100 loans) (107 loans) (118 loans) (124 loans) CRE whole loans, floating-rate21 $1,510 $1,620
Slide 14: CRE Loan Portfolio LTV
CRE Loan Portfolio LTV24 80% $1,800 75% $1,600 73% 73% 72% 74% $1,400 70% Weighted Average LTV $1,200 Principal (in Millions) $1,000 65% $800 60% $600 $400 55% $200 50% $- March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Whole Loans, Floating-Rate Mezz. Loan Pref. Equity Invests. W.
Slide 15: CRE Loan Portfolio Diversification
CRE Loan Portfolio Diversification Balance by Region17,25 Property Type25 Office, 14.8% Hotel, Pacific 11.8% Northeast Multifamily, 10.3% East 56.3% 13.2% West North North Central Self- Central Storage, Mountain 0.4% 5.7% Mid 8.5% 21.4% Atlantic Retail, 15.0% Other26, 4.9% Southeast 3.7% 16.1% South
Slide 16: CRE Loan Portfolio Risk Ratings
CRE Loan Portfolio Risk Ratings27 80% of ACR’s loans have a risk rating of 2 or 3 that are performing in line or near underwritten expectations Percentage of Principal at December 31, 2020 Percentage of Principal at September 30, 2020 40% 40% 41% 37% 20% 18% 2% 2% Rating 1 Rating 2 Rating3328 Rati
Slide 17: Capitalization and Liquidity
Capitalization and Liquidity
Slide 18: Summary Capitalization
Summary Capitalization $1.0 billion of availability on its term warehouse and senior financing facilities and senior unsecured notes. $ in Millions Capitalization7 Maximum Wghtd. Avg. Leverage Amount Availability30 Capacity Coupon Ratio31 Term warehouse financing facilities $750.0 $12.3 $737.0 2.6
Slide 19: Historical Leverage Ratios
Historical Leverage Ratios Historical Leverage Ratio31 5.0x 5.0x 4.6x 3.9x 1.9x 1.4x 1.1x 0.8x March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Recourse Debt30Leverage LeverageRatio Ratio Total Leverage Ratio ACRESREIT.COM 19
Slide 20: Liquidity at February 28, 2021
Liquidity at February 28, 2021 ($ in Millions) $75.0 $150.3 $(40.0) $78.1 $37.2 Unrestricted Cash CRE CRE Term Term and and Senior Senior Senior Unsecured Notes Working Capital Net Liquidity Secured Facilities Secured Facilities Availability Reserve Unfinanced UnfinancedProceeds Proceeds 39 ACRESREI
Slide 21: Appendix
ACRES COMMERCIAL REALTY Appendix
Slide 22: Consolidated Balance Sheets
Consolidated Balance Sheets (In Thousands, except share and per share data) Dec. 31, 2020 Dec. 31, 2019 Assets (Unaudited) Cash and cash equivalents $29,355 $79,958 Restricted cash 38,386 14,476 Accrued interest receivable 7,372 8,042 CRE loans 1,541,992 1,791,445 Less: allowance for credit losses (
Slide 23: Consolidated Statements of Operations
Consolidated Statements of Operations (In Thousands, except share and per share data) For the Three Months Ended For the Year Ended Dec. 31, 2020 Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2019 Revenues (Unaudited) (Unaudited) (Unaudited) Interest income $23,072 $34,524 $108,243 $144,886 Interest expense
Slide 24: Core Earnings
Core Earnings40 The following table provides a reconciliation from GAAP net income (loss) allocable to common shares to Core Earnings allocable to common shares, a non-GAAP measure, for the periods presented: (Unaudited, In Thousands, except share and per share data) For the Three Months Ended For
Slide 25: Footnotes
Footnotes 1. Unless otherwise noted, “recent highlights” include activity that occurred 13. Excludes legacy CRE loans. during the first quarter of 2021. 14. LTV is based on the initial funding divided by the as-is appraised property 2. “CRE” refers to commercial real estate. The “senior secured fina
Slide 26: Footnotes (Continued)
Footnotes (Continued) 29. Includes on preferred equity investment, with a 1.4% and 1.3% percentage of 40. See page 28 for additional information. total principal, risk rated a 4 at December 31, 2020 and September 30, 2020, respectively. 30. Availability is calculated as the difference between the ma
Slide 27: Other Disclosures
Other Disclosures Commercial Real Estate Loans Risk Ratings CRE loans are collateralized by a diversified mix of real estate properties and are assessed for credit quality based on the collective evaluation of several factors, including but not limited to: collateral performance relative to underwri
Slide 28: Other Disclosures (continued)
Other Disclosures (continued) Core Earnings Core Earnings is a non-GAAP financial measure that we use to evaluate our operating performance. Core Earnings exclude the effects of certain transactions and GAAP adjustments that we believe are not necessarily indicative of our current commercial real es
Slide 29: Company Information
Company Information ACRES Commercial Realty Corp. is a real estate investment trust that is primarily focused on originating, holding and managing commercial real estate mortgage loans and other commercial real estate-related debt investments. Additional information is available at the Company’s web
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