Atlas Air Worldwide Holdings Inc
Atlas Air Worldwide — Ares Commercial Real Estate — Q3 2021 Earnings Presentation
19 slides from Atlas Air Worldwide's earnings presentation, Nov 3, 2021
Slide 1: Third Quarter 2021 Earnings Presentation
Third Quarter 2021 Earnings Presentation
Slide 2: Disclaimer
Disclaimer Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended, which may relate to future events or the future performance or financial co
Slide 3: Company Highlights
Company Highlights Strong Deployment Activity Growing Portfolio Stable Earnings and Financial Metrics $485 million $2.4 billion $0.37 Distributable Earnings(1) of new commitments in Q3 2021 outstanding principal balance per diluted common share 90% 33% 1.1x growth in Q3 2021 dividend coverage growth
Slide 4: Summary of Q3 2021 Results and Activity
Summary of Q3 2021 Results and Activity ∙ GAAP net income of $0.21 per diluted common share(1) ∙ Distributable Earnings of $0.37 per diluted common share(2) Earnings Results ∙ Book value per diluted common share of $14.31 ∙ Cash dividend of $0.33 and supplemental cash dividend of $0.02,(3) represent
Slide 5: Loan Portfolio Positioning and Performance
Loan Portfolio Positioning and Performance Portfolio Characteristics Focused and Geographically Diverse Portfolio(1) By Asset Type By Geography Defensive and Diversified 6% 64 $2.4 5.8% 6% 8% Portfolio Active Loans Across Diversified billion Weighted Average Unleveraged 7% 35% 16% 35% Portfolio Outs
Slide 6: Portfolio Activity
Portfolio Activity New Investment Commitments Q3 2021 Loan Origination Composition(2) 90% growth 6% 4% $485 million in year to date Q3 2021 commitments commitments versus 16% same period in 2019(1) 58% 16% 100% 100% senior loans for floating rate loans Q3 2021 commitments Office Mixed-Use Residentia
Slide 7: Conservative Balance Sheet and Liquidity Management
Conservative Balance Sheet and Liquidity Management Diversified Sources of Financing(3) Diversified & Conservative $2.2 3% Balance Sheet 8 58% billion 38% Sources of Non-recourse Secured Funding Agreements Financing(1) Financing Total Capacity Secured Term Loan Across All CLO Securitizations Financi
Slide 8: History of Growing and Consistent Dividends
History of Growing and Consistent Dividends Dividend History(1) Supplemental dividend of $0.02 in 2021 $0.36 $0.35 $0.35 $0.35 $0.34 $0.33 $0.33 $0.33 $0.33 $0.33 $0.33 $0.33 $0.33 $0.32 $0.31 $0.30 $0.29 $0.28 $0.28 $0.28 $0.27 $0.27 $0.27 $0.27 $0.26 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 9: Appendix
Appendix
Slide 10: Current Expected Credit Losses
Current Expected Credit Losses ($ in thousands) ∙ No specific loan impairments on loan portfolio ∙ Increase in CECL reserve of $6.4 million (bifurcated Balance at 6/30/2021 $ 18,113 between funded commitments provision of $5.8 Provision for CECL 6,367 million and unfunded commitments provision of $0
Slide 11: Additional Details on Sources of Funding
Additional Details on Sources of Funding ($ in millions) Financing Sources Total Commitments Outstanding Balance Pricing Range Mark-to-Market Secured Funding Agreements Wells Fargo Facility $ 350.0 $ 281.2 LIBOR+1.50 to 2.75% Credit Citibank Facility 325.0 148.0 LIBOR+1.50 to 2.25% Credit CNB Facili
Slide 12: Loans Held for Investment Portfolio Details
Loans Held for Investment Portfolio Details ($ in millions) Origination Current Loan Outstanding Carrying Unleveraged Payment # Loan Type Location Date Commitment Principal Value Interest Rate LIBOR Floor Effective Yield Maturity Date Terms(1) Office Loans: 1 Senior IL Nov 2020 $151.5 $150.5 $149.8
Slide 13: Loans Held for Investment Portfolio Details
Loans Held for Investment Portfolio Details ($ in millions) Origination Current Loan Outstanding Carrying Unleveraged Payment # Loan Type Location Date Commitment Principal Value Interest Rate LIBOR Floor Effective Yield Maturity Date Terms(1) Mixed-Use Loans: 24 Senior FL Feb 2019 $84.0 $84.0 $84.0
Slide 14: Loans Held for Investment Portfolio Details
Loans Held for Investment Portfolio Details ($ in millions) Origination Current Loan Outstanding Carrying Unleveraged Payment # Loan Type Location Date Commitment Principal Value Interest Rate LIBOR Floor Effective Yield Maturity Date Terms(1) Hotel Loans: 39 Senior OR/WA May 2018 $68.1 $68.1 $67.3
Slide 15: Loans Held for Investment Portfolio Details
Loans Held for Investment Portfolio Details ($ in millions) Origination Current Loan Outstanding Carrying Unleveraged Payment # Loan Type Location Date Commitment Principal Value Interest Rate LIBOR Floor Effective Yield Maturity Date Terms(1) Residential/Condominium Loans: 61 Senior FL Jul 2021 $75
Slide 16: Consolidated Balance Sheets
Consolidated Balance Sheets As of ($ in thousands, except share and per share data) 9/30/2021 12/31/2020 ASSETS Cash and cash equivalents $ 15,787 $ 74,776 Loans held for investment ($1,135,660 and $550,590 related to consolidated VIEs, respectively) 2,363,499 1,815,219 Current expected credit loss
Slide 17: Consolidated Statements of Operations
Consolidated Statements of Operations For the Three Months Ended ($ in thousands, except share and per share data) 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 Revenue: Interest income $ 34,023 $ 30,859 $ 30,704 $ 29,144 $ 30,626 Interest expense (12,669) (11,092) (12,139) (11,499) (11,875) Ne
Slide 18: Reconciliation of Net Income to Non-GAAP Distributable Earnings
Reconciliation of Net Income to Non-GAAP Distributable Earnings For the Three Months Ended ($ in thousands, except per share data) 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 Net income attributable to common stockholders $ 9,951 $ 17,615 $ 15,740 $ 14,407 $ 14,928 Stock-based compensation 42
Slide 19: Glossary
Glossary Ares Warehouse The Ares Warehouse represents a real estate debt warehouse investment vehicle maintained by an affiliate of ACREM. The Ares Warehouse holds Ares Management originated commercial real estate loans, which are made available to purchase by other investment vehicles, including AC
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