MMA Capital — Q2 2020 Earnings Presentation
20 slides from MMA Capital's earnings presentation, Aug 12, 2020
Slide 1: Shareholder Presentation August 11, 2020
Shareholder Presentation August 11, 2020 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 infrastructure, including 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 t
Slide 5: Impact of the COVID-19 Pandemic
Impact of the COVID-19 Pandemic • The long-term impact of COVID-19 on our operational and financial performance will depend on future developments, including the duration, spread and intensity of COVID-19, all of which are uncertain and difficult to predict. • The Company’s 80% ownership interest in
Slide 6: 2Q20 Key Updates
2Q20 Key Updates FINANCIAL RESULTS . BV decreased $3.2 million from March 31, 2020 to $274.5 million, and BV per share decreased $0.58 from March 31, 2020 to $47.24 .. This decrease was substantially driven by a $9.0 million impairment charge recognized on an equity investment in a joint venture, wh
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 infrastructure including renewable energy projects. In 2Q20, MMAC increased its capital invested in renewable energy investments to $349.3 million at June 30, 2020. MMA C
Slide 8: Investment Focus: Growing
GROWING MMAC is strategically focused on investing in infrastructure with a current emphasis on providing debt financing to an underserved segment of the renewable energy market. We primarily make loans to developers, constructors and system owners for the late-stage development and construction of
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 Typically reviews approximately $2 billion of directly sourced opportunities annually No reliance on brokers Typical pipeline of approximately $800 million $1.6 billion of investments fully repaid with a weighted-average internal rate of return (“IRR”) of 16.7%,(1) which ex
Slide 11: Solar Ventures' Track Record
Solar Ventures’ Track Record Since inception in 2015 through 2Q20, the Solar Ventures have originated over 190 project-based loans totaling $2.8 billion of debt commitments to finance 760+ renewable energy project sites across 24 states and territories. 132 loans totaling $1.6 billion have been repa
Slide 12: Renewable Energy Investments
Renewable Energy Investments • As of June 30, 2020, MMAC had $364.4 million of renewable energy investments with the majority through the Solar Ventures, which generated an unlevered net return on investment of 11.8% for the twelve months ended June 30, 2020. • The composition of the underlying loan
Slide 13: Other Assets
Other Assets .. As of June 30, 2020, the Company had a debt and equity investment in a mixed-use development and land in Spanish Fort, AL .. A tax-exempt infrastructure bond secured by sales and land taxes .. An 80% equity investment in a joint venture that owns the Spanish Fort Town Center and land
Slide 14: Capitalization
Capitalization .. At June 30, 2020, the facility had $120.0 million of total commitments across five participants. The UPB and carrying value of the amounts borrowed under this facility was $110.0 million. The facility bears an interest rate of one-month LIBOR (subject to a 1.50% floor, which is cur
Slide 15: Future
Future • Staying true to our mission Moving forward, we expect MMAC to grow its BV, ABV and Share Price by: • Increasing the Company’s return on invested capital by redeploying equity that has been and is targeted to be recycled from non-core investments into infrastructure-related investments, incl
Slide 16: Appendix – Select Financial Data
Appendix – Select Financial Data The select financial data provided in this Appendix can be found in MMAC’s Quarterly Report on Form 10-Q for the six-month period ended June 30, 2020, which was filed on August 10, 2020. MMA Capital Holdings, Inc. 16
Slide 17: Selected Income Statement and Per Share Data
Appendix Appendix – Selected Income Statement and Per Share Data MMA Capital Holdings, Inc. 17
Slide 18: 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: 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