MMA Capital — Q3 2020 Earnings Presentation
20 slides from MMA Capital's earnings presentation, Nov 10, 2020
Slide 1: Shareholder Presentation November 10, 2020
Shareholder Presentation November 10, 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 COVID-19 and the General Economy
Impact of COVID-19 and the General Economy • During the first nine months of 2020, COVID-19 and the general economy have not prevented us from operating our business and making investments, and the Company was in compliance with all its debt covenants. • However, the long-term impact of COVID-19 on
Slide 6: 3Q20 Key Updates
3Q20 Key Updates FINANCIAL RESULTS ▪ BV increased $3.1 million in the third quarter of 2020 to $277.6 million at September 30, 2020, and BV per share increased $0.50 in the third quarter of 2020 to $47.74 at September 30, 2020 ▪ This increase was primarily driven by the impact of strong returns on r
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. At September 30, 2020, MMAC had $349.3 million of capital invested in renewable energy investments. MMA Capital Holdin
Slide 8: Growing: Investment Focus
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 $1.8 billion of investments fully repaid with a WA internal rate of return (“IRR”) of 16.2%,(1) which exceeded the WA
Slide 11: Solar Ventures' Track Record
Solar Ventures’ Track Record Since their inception in 2015, the Solar Ventures have invested in more than 195 project-based loans that total $2.9 billion of debt commitments for the development and construction of over 760 renewable energy project sites across 25 states and territories. 143 loans to
Slide 12: Renewable Energy Investments
Renewable Energy Investments • At September 30, 2020, MMAC had $363.7 million of renewable energy investments, nearly all of which were made in the Solar Ventures. • At September 30, 2020, all but two of the underlying renewable energy projects that the Solar Ventures have lent against, both of whic
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 $24.1 million at September 30, 2020 ▪ A total return swap on the above-mentioned bond that was treated as a secured
Slide 14: Capitalization
Capitalization ▪ At September 30, 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 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 three and nine-month periods ended September 30, 2020, which was filed on November 9, 2020. 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