MMA Capital — Q1 2021 Earnings Presentation
20 slides from MMA Capital's earnings presentation, May 18, 2021
Slide 1: Shareholder Presentation May 17, 2021
Shareholder Presentation May 17, 2021 Nasdaq: MMAC www.mmacapitalholdings.com 3600 O’Donnell Street, Suite 600, Baltimore, MD 21224 (443) 263-2900
Slide 2: Disclaimer
Disclaimer • This presentation and any related oral statements contain forward-looking statements intended to qualify for the safe harbor contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements
Slide 3: Mission
Mission MMA Capital Holdings, Inc. (“MMAC”) focuses on infrastructure-related investments that generate positive environmental and social impacts and deliver attractive risk-adjusted total returns to our shareholders. MMA Capital Holdings, Inc. 3
Slide 4: MMAC Introduction
MMAC Introduction MMAC is currently focused on investing in debt associated with renewable energy projects, which we believe will generate attractive risk-adjusted total returns to our shareholders. (1) Common shareholders’ equity (“Book Value” or “BV”) excluding deferred tax assets (“Adjusted Book
Slide 5: Impact of ERCOT Service Area Exposure
Impact of Electric Reliability Council of Texas (“ERCOT”) Service Area Exposure • At March 31, 2021, 59.2% of the total unpaid principal balance (“UPB”) of outstanding loans of the Solar Ventures were associated with a single sponsor and were secured by three projects located in Texas’ ERCOT service
Slide 6: 1Q21 Key Updates
1Q21 Key Updates FINANCIAL RESULTS ▪ BV decreased $9.6 million during the three months ended March 31, 2021 to $280.3 million, and BV per share decreased $1.69 during the three months ended March 31, 2021 to $48.12 ▪ This decrease was primarily driven by equity in losses of the Solar Ventures that s
Slide 7: Strategic Focus
Strategic Focus Over the years, MMAC has shifted its focus from affordable housing and real estate assets to debt associated with renewable energy projects. At March 31, 2021, MMAC had $348.1 million of capital invested in renewable energy investments. MMA Capital Holdings, Inc. 7 (1) This amount in
Slide 8: Growing: Investment Focus
GROWING MMAC’s current objective is to produce attractive risk-adjusted returns by investing in the large, growing and fragmented renewable energy market in the United States (“U.S.”). We primarily make loans to developers, design and build contractors and system owners for the late-stage developmen
Slide 9: Hunt Investment Management (External Manager)
Hunt Investment Management(1) (“External Manager”) is part of Hunt Companies, Inc. (“Hunt”), which was founded in 1947 and is privately owned. Hunt is dedicated to fostering long-term partnerships through the development, investment, management and financing of real estate and infrastructure. Our Ex
Slide 10: Our Competitive Advantage
Our Competitive Advantage Has typically reviewed approximately $2 billion of directly sourced opportunities annually No reliance on brokers Typical pipeline has been approximately $800 million $2.3 billion of investments fully repaid with a WA internal rate of return (“IRR”)(1) of 19.6%(2), which, o
Slide 11: Solar Ventures' Track Record
Solar Ventures’ Track Record Since their inception in 2015, the Solar Ventures have invested in more than 210 project-based loans that total $3.6 billion of debt commitments for the development and construction of over 815 renewable energy project sites across 28 states and territories. When complet
Slide 12: Renewable Energy Investments
Renewable Energy Investments • At March 31, 2021, MMAC had $342.9 million of renewable energy investments, all of which were made in the Solar Ventures. • At March 31, 2021, all but one renewable energy project had usual and customary take-out commitments in place as generally required under the loa
Slide 13: Other Assets
Other Assets ▪ Investments in a mixed-use development and land in Spanish Fort, AL ▪ A tax-exempt infrastructure bond secured by sales and land taxes with a reported carrying value of $24.7 million at March 31, 2021 ▪ A total return swap on the above-mentioned bond that was treated as a secured borr
Slide 14: Capitalization
Capitalization ▪ At March 31, 2021, the facility had $120.0 million of total commitments across five participants. The UPB and reported carrying value of amounts borrowed under this facility was $79.1 million. The facility bears an interest rate of one-month LIBOR (subject to a 1.50% floor, which is
Slide 15: Future
Future • Staying true to our mission Moving forward, we expect MMAC to grow its BV, ABV and Share Price by: • Recycling equity out of lower yielding investments • Leveraging our investments prudently • Lowering our overhead in total and as a percentage of equity • Exploring opportunities in other in
Slide 16: Appendix – Selected Financial Data
Appendix – Selected Financial Data The selected financial data provided in this Appendix can be found in MMAC’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, which was filed on May 17, 2021. MMA Capital Holdings, Inc. 16
Slide 17: Appendix – Selected Income Statement and Per Share Data
Appendix Appendix – Selected Income Statement and Per Share Data MMA Capital Holdings, Inc. 17
Slide 18: Appendix – Selected Balance Sheet Data and Rollforward of Book Value
Appendix Appendix – Selected Balance Sheet Data and Rollforward of Book Value MMA Capital Holdings, Inc. 18
Slide 19: Appendix – Reconciliation of Non-GAAP Measures
Appendix Appendix – Reconciliation of Non-GAAP Measures MMA Capital Holdings, Inc. 19 • We present certain non-GAAP financial measures that supplement the financial measures we disclose that are calculated under GAAP. Non- GAAP financial measures are those that include or exclude certain items that
Slide 20: For more information, please visit our website
Nasdaq: MMAC For more information, please visit our website at www.mmacapitalholdings.com Or, contact Investor Relations directly at 443-263-2900 | 855-650-6932 [email protected] MMA Capital Holdings, Inc. 20