MMA Capital — Investor Presentation (April 2021)
21 slides from MMA Capital's investor presentation, Apr 5, 2021
Slide 1: Shareholder Presentation April 1, 2021
Shareholder Presentation April 1, 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 Market Exposure
Impact of Electric Reliability Council of Texas (“ERCOT”) Market Exposure • At December 31, 2020, 55.9% 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 ar
Slide 6: Impact of COVID-19 and the General Economy
Impact of COVID-19 and the General Economy • During the year ended December 31, 2020, COVID-19 has not prevented us from operating our business and making investments, and the Company was in compliance with all of its debt covenants as of year end. • As of December 31, 2020, most of the renewable en
Slide 7: 2020 Key Updates
2020 Key Updates FINANCIAL RESULTS ▪ BV increased $8.8 million in 2020 to $289.9 million at December 31, 2020, and BV per share increased $1.38 in 2020 to $49.81 at December 31, 2020 ▪ This increase was primarily driven by strong returns on renewable energy investments ▪ BV includes $59.1 million of
Slide 8: 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 December 31, 2020, MMAC had $348.1 million of capital invested in renewable energy investments. MMA Capital Holdings, Inc. 8 (1) This amount
Slide 9: 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 10: 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 11: 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 19.7%(2), which, o
Slide 12: Solar Ventures' Track Record
Solar Ventures’ Track Record Since their inception in 2015, the Solar Ventures have invested in more than 200 project-based loans that total $3.4 billion of debt commitments for the development and construction of over 780 renewable energy project sites across 27 states and territories. Through Dece
Slide 13: Renewable Energy Investments
Renewable Energy Investments • At December 31, 2020, MMAC had $363.2 million of renewable energy investments, all of which were made in the Solar Ventures. • At December 31, 2020, all but two renewable energy projects had usual and customary take-out commitments in place as generally required under
Slide 14: 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 December 31, 2020 ▪ A total return swap on the above-mentioned bond that was treated as a secured b
Slide 15: Capitalization
Capitalization ▪ At December 31, 2020, the facility had $120.0 million of total commitments across five participants. The UPB and reported carrying value of the amounts borrowed under this facility was $103.7 million. The facility bears an interest rate of one-month LIBOR (subject to a 1.50% floor,
Slide 16: 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 17: Appendix – Select Financial Data
Appendix – Select Financial Data The select financial data provided in this Appendix can be found in MMAC’s 2020 Annual Report on Form 10-K for the year ended December 31, 2020, which was filed on March 31, 2021. MMA Capital Holdings, Inc. 17
Slide 18: Appendix – Selected Income Statement and Per Share Data
Appendix Appendix – Selected Income Statement and Per Share Data MMA Capital Holdings, Inc. 18
Slide 19: 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. 19
Slide 20: Appendix – Reconciliation of Non-GAAP Measures
Appendix Appendix – Reconciliation of Non-GAAP Measures MMA Capital Holdings, Inc. 20 • 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 21: 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. 21
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