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Exantas Capital Corp. Reports Results For Three Months Ended March 31, 2019

NEW YORK, May 1, 2019 /PRNewswire/ -- Exantas Capital Corp. (NYSE: XAN) ("XAN" or the "Company") reports results for the three months ended March 31, 2019.

Significant Items and Highlights

  • GAAP net income allocable to common shares of $0.18 per share-diluted for the three months ended March 31, 2019.
     
  • Core Earnings were $0.25 per common share-diluted for the three months ended March 31, 2019 (see Schedule I).
     
  • Management anticipates the Company will declare a cash dividend of $0.225 per share on its common stock for the second quarter of 2019, which would be a 12.5% increase over the first quarter of 2019 dividend of $0.20 per share and a 125% increase over the second quarter of 2018 dividend of $0.10 per share.
     
  • XAN originated $171.0 million of new commercial real estate ("CRE") loans during the three months ended March 31, 2019 (see Schedule III).
     
  • Book value was $14.06 per common share at March 31, 2019 as compared to $14.02 per common share at December 31, 2018 and includes an increase of $0.13 per common share for the net improvement in the mark-to-market on the commercial mortgage-backed securities ("CMBS") portfolio.
     
  • Economic book value, which adjusts for the face redemption amounts of the Company's outstanding preferred stock and convertible senior notes, was $13.60 per common share at March 31, 2019 as compared to $13.54 per common share at December 31, 2018 (see Schedule IV).
     
  • XAN closed a CRE debt securitization that financed CRE loans of $687.2 million on April 17, 2019 at a weighted average cost of the one-month London Interbank Offered Rate ("LIBOR") plus 1.32%.

Three Months Ended March 31, 2019 Results

  • GAAP net income allocable to common shares was $5.5 million, or $0.18 per share-diluted, for the three months ended March 31, 2019 as compared to a GAAP net loss allocable to common shares of $12.6 million, or $(0.40) per share-diluted, for the three months ended March 31, 2018.
     
  • GAAP net income allocable to common shares for the three months ended March 31, 2019 includes an increase to the general loan reserve of $1.0 million, or $(0.03) per share-diluted.
     
  • Core Earnings of $7.8 million, or $0.25 per common share-diluted, for the three months ended March 31, 2019 (see Schedule I).

Additional Items

Commercial Real Estate

  • Substantially all of XAN's $1.7 billion CRE loan portfolio comprised floating rate senior whole loans at March 31, 2019.
     
  • XAN's CRE floating rate whole loan portfolio had a weighted average spread of 3.86% and 3.95% over one-month LIBOR of 2.49% and 2.50% at March 31, 2019 and December 31, 2018, respectively.
     

The following table summarizes XAN's CRE loan activities and fundings of previous commitments for the three and twelve months ended March 31, 2019 and 2018 (in millions, except percentages and amounts in footnotes):

   

Three Months
Ended

March 31,
2019

 

Twelve Months
Ended

March 31,
2019

 

Three Months
Ended

March 31,
2018

 

Twelve Months
Ended

March 31,
2018

New CRE loan commitments

 

$

171.0

 

$

886.2

 

$

127.1

 

$

598.5

New CRE preferred equity investment

   

   

   

19.2

   

19.2

Total CRE loan commitments and investments

   

171.0

   

886.2

   

146.3

   

617.7

Sale, payoffs and paydowns (1)(2)

   

(67.4)

   

(591.6)

   

(51.5)

   

(500.3)

Previous commitments funded

   

13.0

   

53.8

   

10.5

   

35.8

New unfunded loan commitments

   

(6.3)

   

(73.7)

   

(13.6)

   

(70.1)

Net CRE loans funded

 

$

110.3

 

$

274.7

 

$

91.7

 

$

83.1

                         

Weighted average one-month LIBOR floor on new originations (3)

   

2.40%

   

2.04%

   

1.37%

   

1.13%

Weighted average spread above one-month LIBOR (3)

   

3.16%

   

3.27%

   

3.94%

   

4.28%

Weighted average unlevered yield, including amortization of origination fees

   

5.96%

   

5.83%

   

5.79%

   

5.76%

   

(1)

CRE loan payoffs and extensions resulted in exit and extension fees of $475,000 and $3.1 million during the three and twelve months ended March 31, 2019, respectively,
and $370,000 and $1.2 million during the three and twelve months ended March 31, 2018, respectively.

(2)

Activity excludes legacy CRE loans.

(3)

Applicable to new floating rate CRE whole loans funded.

Commercial Mortgage-Backed Securities

  • XAN's CMBS portfolio had a carrying value of $440.9 million and a weighted average coupon of 4.81% at March 31, 2019.

The following table summarizes XAN's CMBS activities, at face value, for the three and twelve months ended March 31, 2019 and 2018 (in millions, except percentages):

         

Three Months
Ended

March 31,
2019

 

Twelve Months
Ended

March 31,
2019

 

Three Months
Ended

March 31,
2018

 

Twelve Months
Ended

March 31,
2018

CMBS acquisitions

       

$

27.5

 

$

235.5

 

$

44.3

 

$

256.2

Sales

         

   

(14.9)

   

   

(7.4)

Principal paydowns

         

(12.2)

   

(29.7)

   

(3.4)

   

(50.5)

CMBS acquisitions, net

       

$

15.3

 

$

190.9

 

$

40.9

 

$

198.3

                               

Weighted average coupon at the respective period end

         

4.91%

   

4.68%

   

3.88%

   

4.14%

Commercial Real Estate Securitizations

  • XAN closed a CRE debt securitization that financed CRE loans of $687.2 million on April 17, 2019 and issued $585.8 million of non-recourse, floating-rate notes, of which the Company purchased $10.0 million of the Class D notes rated BBB(low)(sf), at a weighted average cost of one-month LIBOR plus 1.32%.

Liquidity

  • At April 30, 2019, XAN's available liquidity consisted of two primary sources:
     
    • unrestricted cash and cash equivalents of $70.6 million; and
       
    • approximately $119.1 million of liquidity from available financing of unlevered CRE loans and CMBS.

Common Stock Book Value, Economic Book Value and Total Stockholders' Equity

The following table rolls forward XAN's common stock book value from December 31, 2018 to March 31, 2019 and reconciles common stock book value to economic book value, a non-GAAP measure, at March 31, 2019 (see Schedule IV) (in thousands, except per share data and amounts in footnotes):

       

Total

Amount

 

Per Share

Amount

Common stock book value at December 31, 2018 (1)

     

$

437,863

 

$

14.02

Net income allocable to common shares

       

5,545

   

0.18

Change in other comprehensive income:

               

Available-for-sale securities

       

5,865

   

0.19

Derivatives

       

(1,716)

   

(0.06)

Common stock dividends

       

(6,287)

   

(0.20)

Common stock dividends on unvested shares

       

(86)

   

Accretion (dilution) from additional shares outstanding at March 31, 2019 (2)

       

683

   

(0.07)

Total net increase

       

4,004

   

0.04

Common stock book value at March 31, 2019 (1)(3)

     

$

441,867

 

$

14.06

                 

Reconciling items in arriving at economic book value at March 31, 2019:

               

Non-cash convertible senior notes' unamortized discounts:

               

4.50% Convertible Senior Notes

       

(10,186)

   

(0.33)

8.00% Convertible Senior Notes

       

(112)

   

Series C Preferred Stock redemption value in excess of carrying value

       

(4,045)

   

(0.13)

Economic book value at March 31, 2019

     

$

427,524

 

$

13.60

   

(1)

Per share calculations exclude unvested restricted stock, as disclosed on the consolidated balance sheets, of 430,986 and 422,671 shares at
March 31, 2019 and December 31, 2018, respectively. The denominators for the calculations are 31,436,120 and 31,234,828 at March 31, 2019
and December 31, 2018, respectively.

(2)

Per share amount calculations include 201,292 additional shares of restricted stock that vested during the three months ended March 31, 2019.

(3)

Common stock book value is calculated as total stockholders' equity of $557.8 million less preferred stock equity of $116.0 million at March 31,
2019.

The following table presents the economic book value per common share for the periods then ended:

     

At March 31,
2019

   

At December
31, 2018

   

At September
30, 2018

   

At June 30,
2018

   

At March 31,
2018

 

Economic book value

   

$

13.60

   

$

13.54

   

$

13.72

   

$

13.56

   

$

13.36

 
                                           

Investment Portfolio

The following table summarizes the amortized cost and net carrying amount of XAN's investment portfolio at March 31, 2019, classified by asset type (in thousands, except percentages and amounts in footnotes):

At March 31, 2019

   

Amortized
Cost

 

Net Carrying
Amount

 

Percent of
Portfolio

 

Weighted
Average
Coupon

Core Assets:

                         

CRE whole loans (1)(2)

   

$

1,627,574

 

$

1,625,147

   

76.70%

 

6.35%

CRE mezzanine loan and preferred equity investment (2)

     

24,435

   

24,435

   

1.15%

 

11.21%

CMBS, fixed rate (3)

     

116,679

   

119,018

   

5.62%

 

4.07%

CMBS, floating rate (3)

     

321,957

   

321,862

   

15.19%

 

5.17%

Total Core Assets

     

2,090,645

   

2,090,462

   

98.66%

     

Non-Core Assets:

                         

Structured notes (4)

     

1,000

   

   

—%

 

N/A (7)

Direct financing leases (4)

     

801

   

66

   

—%

 

N/A (7)

Legacy CRE loans (5)(6)

     

33,266

   

28,498

   

1.34%

 

1.70%

Total Non-Core Assets

     

35,067

   

28,564

   

1.34%

     

Total Core and Non-Core Assets

   

$

2,125,712

 

$

2,119,026

   

100.00%

     
   

(1)

Net carrying amount includes an allowance for loan losses of $2.4 million at March 31, 2019.

(2)

Classified as CRE loans on the consolidated balance sheet.

(3)

Classified as investment securities available-for-sale on the consolidated balance sheet.

(4)

Classified as other assets on the consolidated balance sheet.

(5)

Includes one legacy CRE loan with an amortized cost of $11.5 million classified as CRE loans on the consolidated balance sheet as XAN intends to
hold this loan to maturity.

(6)

Net carrying amount includes a lower of cost or market value adjustment at March 31, 2019.

(7)

There are no stated rates associated with these investments.

Strategic Plan Update

In November 2016, XAN's board of directors approved the strategic plan (the "Plan"). The Plan contemplated disposing of certain loans underwritten prior to 2010, exiting non-core businesses and investments, and maintaining a dividend policy based on sustainable earnings. XAN has substantially completed the execution of the Plan.

At March 31, 2019, XAN had approximately $28.5 million, composed of two legacy CRE loans, remaining of the $480.1 million of identified Plan assets.

Supplemental Information

The following schedules of reconciliations and supplemental information at March 31, 2019 are included at the end of this release:

  • Schedule I - Reconciliation of GAAP Net Income (Loss) to Core Earnings;
  • Schedule II - Summary of Securitization Performance Statistics;
  • Schedule III - CRE Loan Activities;
  • Schedule IV - Economic Book Value Per Share; and
  • Schedule V - Supplemental Information.

About Exantas Capital Corp.

Exantas Capital Corp. is a real estate investment trust that is primarily focused on originating, holding and managing commercial mortgage loans and commercial real estate-related debt investments.

The Company is externally managed by Exantas Capital Manager Inc. (the "Manager"), which is an indirect wholly-owned subsidiary of C-III Capital Partners LLC, a leading commercial real estate investment management and services company engaged in a broad range of activities.

For more information, please visit XAN's website at www.exantas.com or contact investor relations at IR@exantas.com.

Safe Harbor Statement

Statements made in this release may include forward-looking statements, which involve substantial risks and uncertainties. XAN's actual results, performance or achievements could differ materially from those expressed or implied in this release. The risks and uncertainties associated with forward-looking statements contained in this release include those related to:

  • fluctuations in interest rates and related hedging activities;
  • the availability of debt and equity capital to acquire and finance investments;
  • defaults or bankruptcies by borrowers on XAN's loans or on loans underlying its investments;
  • adverse market trends that have affected and may continue to affect the value of real estate and other assets underlying XAN's investments;
  • increases in financing or administrative costs; and
  • general business and economic conditions that have in the past impaired and may in the future impair the credit quality of borrowers and XAN's ability to originate loans.

For further information concerning these and other risks pertaining to the forward-looking statements contained in this release, and to the general risks to which XAN is subject, see Item 1A, "Risk Factors," included in its Annual Report on Form 10-K for the year ended December 31, 2018 and the risks expressed in its other public filings with the Securities and Exchange Commission (the "SEC").

XAN cautions you not to place undue reliance on any forward-looking statements contained in this release, which speak only as of the date of this release. All subsequent written and oral forward-looking statements attributable to XAN or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this release. Except to the extent required by applicable law or regulation, XAN undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.

Furthermore, certain non-GAAP financial measures are discussed in this release. XAN's presentation of this information is not intended to be considered in isolation of or as a substitute for the financial information presented in accordance with GAAP. Reconciliations of these non-GAAP financial measures to the most comparable measures prepared in accordance with GAAP are set forth in Schedule I of this release and can be accessed through XAN's filings with the SEC at www.sec.gov.

The remainder of this release contains XAN's unaudited (2019) and audited (2018) consolidated balance sheets, unaudited consolidated statements of operations, a reconciliation of GAAP net income (loss) to Core Earnings, a summary of securitization performance statistics, a summary of XAN's CRE loan activities, a reconciliation of XAN's common stock book value to its economic book value and supplemental information regarding XAN's CRE loan portfolio.

 

 

 

EXANTAS CAPITAL CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

 

 

 

 
   
   
           
     

March 31, 2019

 

December 31, 2018

     

(unaudited)

     

ASSETS (1)

             

Cash and cash equivalents

   

$

55,660

 

$

82,816

Restricted cash

     

7,485

   

12,658

Accrued interest receivable

     

8,455

   

8,198

CRE loans, net of allowances of $2,427 and $1,401

     

1,661,080

   

1,551,967

Investment securities available-for-sale

     

440,880

   

418,998

Principal paydowns receivable

     

   

32,083

Investments in unconsolidated entities

     

1,548

   

1,548

Derivatives, at fair value

     

243

   

985

Other assets

     

4,463

   

4,015

Assets held for sale (amounts include $17,000 and $17,000 of legacy CRE loans held
for sale in continuing operations)

     

17,646

   

17,645

Total assets

   

$

2,197,460

 

$

2,130,913

LIABILITIES (2)

             

Accounts payable and other liabilities

   

$

4,370

 

$

7,550

Management fee payable

     

698

   

938

Accrued interest payable

     

2,217

   

4,224

Borrowings

     

1,620,441

   

1,554,223

Distributions payable

     

8,098

   

7,265

Derivatives, at fair value

     

1,994

   

1,043

Accrued tax liability

     

   

31

Liabilities held for sale

     

1,819

   

1,820

Total liabilities

     

1,639,637

   

1,577,094

STOCKHOLDERS' EQUITY

             

Preferred stock, par value $0.001:  10,000,000 shares authorized 8.625% Fixed-to-
Floating Series C Cumulative Redeemable Preferred Stock, liquidation preference
$25.00 per share; 4,800,000 and 4,800,000 shares issued and outstanding

     

5

   

5

Common stock, par value $0.001:  125,000,000 shares authorized; 31,867,106 and
31,657,499 shares issued and outstanding (including 430,986 and 422,671 unvested
restricted shares)

     

32

   

32

Additional paid-in capital

     

1,083,360

   

1,082,677

Accumulated other comprehensive income (loss)

     

1,092

   

(3,057)

Distributions in excess of earnings

     

(526,666)

   

(525,838)

Total stockholders' equity

     

557,823

   

553,819

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

   

$

2,197,460

 

$

2,130,913

 

 

 

 

 

EXANTAS CAPITAL CORP. AND SUBSIDIARIES

 

CONSOLIDATED BALANCE SHEETS - (Continued)

 

(in thousands, except share and per share data)

 
   
   
     

March 31, 2019

 

December 31, 2018

     

(unaudited)

     

(1) Assets of consolidated variable interest entities ("VIEs") included in total assets
above:

             

Restricted cash

   

$

1,334

 

$

6,189

Accrued interest receivable

     

3,258

   

3,548

CRE loans, pledged as collateral and net of allowances of $763 and $763

     

686,681

   

700,223

Principal paydowns receivable

     

   

31,914

Other assets

     

34

   

157

Total assets of consolidated VIEs

   

$

691,307

 

$

742,031

(2) Liabilities of consolidated VIEs included in total liabilities above:

             

Accounts payable and other liabilities

   

$

102

 

$

75

Accrued interest payable

     

743

   

709

Borrowings

     

451,708

   

501,045

Total liabilities of consolidated VIEs

   

$

452,553

 

$

501,829

 

 

 

EXANTAS CAPITAL CORP. AND SUBSIDIARIES

 

CONSOLIDATED STATEMTENTS OF OPERATIONS

 

(in thousands, except share and per share data)

 

(unaudited)

 
   
   
     

For the Three Months Ended

     

March 31,

     

2019

 

2018

REVENUES

             

Interest income:

             

CRE loans

   

$

27,343

 

$

22,383

Securities

     

6,375

   

3,456

Other

     

214

   

118

Total interest income

     

33,932

   

25,957

Interest expense

     

19,395

   

14,384

Net interest income

     

14,537

   

11,573

Other revenue (expense)

     

26

   

(95)

Total revenues

     

14,563

   

11,478

OPERATING EXPENSES

             

Management fees

     

2,083

   

2,813

Equity compensation

     

683

   

967

General and administrative

     

2,577

   

3,060

Depreciation and amortization

     

24

   

13

Provision for (recovery of) loan losses, net

     

1,025

   

(799)

Total operating expenses

     

6,392

   

6,054

               
       

8,171

   

5,424

OTHER INCOME (EXPENSE)

             

Equity in losses of unconsolidated entities

     

   

(292)

Net realized and unrealized loss on investment securities available-for-sale and loans
and derivatives

     

   

(642)

Net realized and unrealized loss on investment securities, trading

     

   

(5)

Fair value adjustments on financial assets held for sale

     

(102)

   

(4,665)

Other income

     

101

   

11

Total other expense

     

(1)

   

(5,593)

               

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES

     

8,170

   

(169)

Income tax benefit

     

   

32

NET INCOME (LOSS) FROM CONTINUING OPERATIONS

     

8,170

   

(137)

NET (LOSS) INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX

     

(37)

   

247

NET INCOME

     

8,133

   

110

Net income allocated to preferred shares

     

(2,588)

   

(5,210)

Consideration paid in excess of carrying value of preferred shares

     

   

(7,482)

NET INCOME (LOSS) ALLOCABLE TO COMMON SHARES

   

$

5,545

 

$

(12,582)

NET INCOME (LOSS) PER COMMON SHARE - BASIC:

             

CONTINUING OPERATIONS

   

$

0.18

 

$

(0.41)

DISCONTINUED OPERATIONS

     

   

0.01

TOTAL NET INCOME (LOSS) PER COMMON SHARE - BASIC

   

$

0.18

 

$

(0.40)

NET INCOME (LOSS) PER COMMON SHARE - DILUTED:

             

CONTINUING OPERATIONS

   

$

0.18

 

$

(0.41)

DISCONTINUED OPERATIONS

     

   

0.01

TOTAL NET INCOME (LOSS) PER COMMON SHARE - DILUTED

   

$

0.18

 

$

(0.40)

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING -
BASIC

     

31,379,253

   

31,111,315

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING -
DILUTED

     

31,531,286

   

31,111,315

 

 

 

SCHEDULE I

 

EXANTAS CAPITAL CORP. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME (LOSS) TO CORE EARNINGS
(unaudited)

XAN uses Core Earnings as a non-GAAP financial measure to evaluate its operating performance.

Core Earnings exclude the effects of certain transactions and GAAP adjustments that XAN believes are not indicative of its current CRE loan portfolio and other CRE-related investments and operations. Core Earnings exclude income (loss) from all non-core assets, such as commercial finance, middle market lending, residential mortgage lending, certain legacy CRE loans and other non-CRE assets designated as assets held for sale at the initial measurement date of December 31, 2016.

Core Earnings, for reporting purposes, is defined as GAAP net income (loss) allocable to common shares, excluding (i) non-cash equity compensation expense, (ii) unrealized gains and losses, (iii) non-cash provisions for loan losses, (iv) non-cash impairments on securities, (v) non-cash amortization of discounts or premiums associated with borrowings, (vi) net income or loss from a limited partnership interest owned at the initial measurement date, (vii) net income or loss from non-core assets,(1)(2) (viii) real estate depreciation and amortization, (ix) foreign currency gains or losses and (x) income or loss from discontinued operations. Core Earnings may also be adjusted periodically to exclude certain one-time events pursuant to changes in GAAP and certain non-cash items.

Although pursuant to the Third Amended and Restated Management Agreement XAN calculates incentive compensation using Core Earnings excluding incentive fees payable to the Manager, XAN includes incentive fees payable to the Manager in Core Earnings for reporting purposes.

Core Earnings does not represent net income or cash generated from operating activities and should not be considered as an alternative to GAAP net income or as a measure of liquidity under GAAP. XAN's methodology for calculating Core Earnings may differ from methodologies used by other companies to calculate similar supplemental performance measures, and, accordingly, its reported Core Earnings may not be comparable to similar performance measures used by other companies.

The following table provides a reconciliation from GAAP net income (loss) allocable to common shares to Core Earnings allocable to common shares and Core Earnings allocable to common shares, adjusted for the periods presented (in thousands, except per share data and the amount in footnotes):

 

         

For the Three Months Ended

         

March 31,

         

2019

 

2018

Net income (loss) allocable to common shares - GAAP

       

$

5,545

 

$

(12,582)

Adjustment for realized gains on CRE assets

         

   

Net income (loss) allocable to common shares - GAAP, adjusted

         

5,545

   

(12,582)

Reconciling items from continuing operations:

                 

Non-cash equity compensation expense

         

683

   

967

Non-cash provision for (recovery of) CRE loan losses

         

1,025

   

(799)

Litigation settlement expense (3)

         

   

(2,167)

Non-cash amortization of discounts or premiums associated with borrowings

         

683

   

778

Income tax benefit from non-core investments (1)(2)

         

   

(32)

Net realized (gain) loss on non-core assets (1)(2)

         

(8)

   

215

Net (income) loss from non-core assets (2)

         

(5)

   

397

Reconciling items from discontinued operations and CRE loans:

                 

Net interest income on legacy CRE loans

         

(233)

   

(322)

Fair value adjustments on legacy CRE loans

         

102

   

4,672

Net loss from other non-CRE investments held for sale

         

   

478

Loss (income) from discontinued operations, net of taxes

         

37

   

(247)

Core Earnings allocable to common shares

         

7,829

   

(8,642)

                   

Reconciling items in arriving at Core Earnings allocable to common shares,adjusted:

                 

Loss on redemption of Series B Preferred Stock

         

   

7,482

Litigation settlement expense

         

   

2,167

Core Earnings allocable to common shares, adjusted (4)

       

$

7,829

 

$

1,007

                   

Weighted average common shares - diluted

         

31,531

   

31,111

                   

Core Earnings per common share - diluted

       

$

0.25

 

$

(0.28)

Core Earnings per common share, adjusted - diluted (4)

       

$

0.25

 

$

0.03

 

   

(1)

Income tax expense or benefit from non-core investments and net realized gain on non-core assets are components of net income or loss from non-core
assets.

(2)

Non-core assets are investments and securities owned by XAN at the initial measurement date in (i) commercial finance, (ii) middle market lending, (iii)
residential mortgage lending, (iv) legacy CRE loans and (v) other non-CRE assets included in assets held for sale.

(3)

Includes the payment of the settlement of a securities litigation, previously accrued in 2017, for the three months ended March 31, 2018.

(4)

Core Earnings, adjusted exclude a non-recurring charge of $7.5 million, or $(0.24) per common share-diluted, for the three months ended March 31, 2018
in connection with the redemption of the Company's Series B Preferred Stock.

 

SCHEDULE II

EXANTAS CAPITAL CORP. AND SUBSIDIARIES
SUMMARY OF SECURITIZATION PERFORMANCE STATISTICS
(unaudited)

Distributions, Coverage Tests and Liquidations

The following table sets forth the distributions received by XAN and coverage test summaries for its active securitizations for the periods presented (in thousands):

 

       

Cash Distributions

 

 

Overcollateralization Cushion (1)  

   

Name

     

For the Three
Months
 Ended
March
 31, 2019

 

For the Year
Ended
December
 31,
2018

 

At March 31,
2019

 

At the Initial
Measurement
Date

 

End of Designated
Principal
Reinvestment
Period

RCC 2017-CRE5 (2)

     

$

3,114

 

$

22,843

 

$

94,288

 

$

20,727

 

July 2020

XAN 2018-RSO6 (2)

     

$

4,853

 

$

8,323

 

$

25,731

 

$

25,731

 

December 2020

Apidos CDO I, Ltd. (3)

     

$

708

 

$

 

N/A

 

$

17,136

 

N/A

Apidos CDO III, Ltd. (3)

     

$

 

$

618

 

N/A

 

$

11,269

 

N/A

 

   

(1)

Overcollateralization cushion represents the amount by which the collateral held by the securitization issuer exceeds the minimum amount required.

(2)

The designated principal reinvestment period for Resource Capital Corp. 2017-CRE5, Ltd. and Exantas Capital Corp. 2018-RSO6, Ltd. is the period
in which principal repayments can be utilized to purchase loans held outside of the respective securitization that represent the funded commitments
of existing collateral in the respective securitization that were not funded as of the date the respective securitization was closed. Additionally, the
indenture for each securitization does not contain any interest coverage test provisions.

(3)

Apidos CDO I, Ltd. and Apidos CDO III, Ltd. were substantially liquidated in October 2014 and June 2015, respectively.

 

The following table sets forth the distributions received by XAN and liquidation details for its liquidated securitizations for the periods presented (in thousands):

 

         

Cash Distributions

   

Liquidation Details

 

Name

       

For the Three
Months Ended
March
 31, 2019

   

For the Year
Ended
December
 31,
2018

   

Liquidation Date

 

Remaining Assets
at the
Liquidation

Date (1)

 

RCC 2015-CRE3

       

$

   

$

3,529

   

August 2018

 

$

80,632

 

RCC 2015-CRE4

       

$

   

$

4,487

   

July 2018

 

$

97,825

 

Whitney CLO I, Ltd. (2)

       

$

68

   

$

   

January 2019

 

$

 

 

   

(1)

The remaining assets at the liquidation date were returned to XAN in exchange for its preference share and equity notes in the securitization.

(2)

Whitney CLO I, Ltd. was substantially liquidated in September 2013.

 

 

 

 

SCHEDULE III 
EXANTAS CAPITAL CORP. AND SUBSIDIARIES
CRE LOAN ACTIVITIES
(unaudited)

 

 

The following table summarizes XAN's CRE loan activities and fundings of previous commitments for the periods then ended (in millions):

 

 
 
   

For the Three Months Ended

   

March 31,

2019

 

December 31,

2018

 

September 30,

2018

 

June 30,

2018

 

March 31,

2018

New CRE loan commitments

 

$

171.0

 

$

274.9

 

$

245.1

 

$

195.3

 

$

127.1

New CRE preferred equity investment

   

   

   

   

   

19.2

Total CRE loan commitments and investments

   

171.0

   

274.9

   

245.1

   

195.3

   

146.3

Sale, payoffs and paydowns (1)

   

(67.4)

   

(203.1)

   

(171.2)

   

(149.8)

   

(51.5)

Previous commitments funded

   

13.0

   

13.3

   

15.5

   

12.1

   

10.5

New unfunded loan commitments

   

(6.3)

   

(30.5)

   

(20.6)

   

(16.3)

   

(13.6)

Net CRE loans funded

 

$

110.3

 

$

54.6

 

$

68.8

 

$

41.3

 

$

91.7

 

(1)     Activity excludes legacy CRE loans.

 

 

 

SCHEDULE IV
EXANTAS CAPITAL CORP. AND SUBSIDIARIES
ECONOMIC BOOK VALUE PER SHARE
(unaudited)

 

 

Management views economic book value, a non-GAAP measure, as a useful and appropriate supplement to GAAP stockholders' equity and common stock book value because it adjusts GAAP common stock book value to account for the face redemption amounts of the outstanding preferred stock and convertible senior notes. The following table reconciles XAN's common stock book value per share to its economic book value per share at the dates presented:

 

 
   

At March 31,
2019

 

At December
31, 2018

 

At September
30, 2018

 

At June 30,
2018

 

At March 31,
2018

Common stock book value

 

$

14.06

 

$

14.02

 

$

14.23

 

$

14.09

 

$

13.92

Non-cash convertible senior notes' unamortized discounts

   

(0.33)

   

(0.35)

   

(0.38)

   

(0.40)

   

(0.43)

Preferred stock redemption values in excess of carrying
values

   

(0.13)

   

(0.13)

   

(0.13)

   

(0.13)

   

(0.13)

Economic book value

 

$

13.60

 

$

13.54

 

$

13.72

 

$

13.56

 

$

13.36

 

 

SCHEDULE V
EXANTAS CAPITAL CORP. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION

 

Certain Loan Statistics

 

The following table presents information on XAN's allowance for CRE loan losses, which excludes fair value adjustments on a legacy CRE loan classified as assets held for sale, at the dates indicated (amounts in thousands, percentages based on amortized cost):

 

 
 
 

March 31, 2019

 

December 31, 2018

 

(unaudited)

     

Allowance for loan losses:

         

General allowance:

         

CRE whole loans

$

2,427

 

$

1,401

Total general allowance

 

2,427

   

1,401

Total allowance for loans

$

2,427

 

$

1,401

Allowance as a percentage of total loans

 

0.1%

   

0.1%

 

 

There was no specific allowance for loan losses at March 31, 2019 or December 31, 2018.

 

The following table presents unaudited CRE loan portfolio statistics at March 31, 2019, excluding a legacy CRE loan classified as assets held for sale (percentages based on carrying value at March 31, 2019):

Loan type:

       

Whole loans

   

98.5

%

Preferred equity investment

   

1.2

%

Mezzanine loan

   

0.3

%

Total

   

100.0

%

         

Collateral type:

       

Multifamily

   

62.2

%

Office

   

13.8

%

Hotel

   

10.8

%

Retail

   

6.3

%

Self-Storage

   

4.5

%

Industrial

   

1.2

%

Manufactured Housing

   

1.2

%

Total

   

100.0

%

         

Collateral by NCREIF U.S. region:

       

Southwest (1)

   

29.4

%

Mountain (2)

   

21.0

%

Pacific (3)

   

14.4

%

Southeast (4)

   

13.6

%

Northeast

   

9.8

%

Mid Atlantic

   

7.5

%

East North Central

   

3.8

%

West North Central

   

0.5

%

Total

   

100.0

%

   

(1)

CRE loans in Texas represent 27.6% of the total loan portfolio.

(2)

CRE loans in Arizona represent 11.9% of the total loan portfolio.

(3)

CRE loans in Southern and Northern California represent 7.2% and 3.8%, respectively, of the total loan portfolio.

(4)

CRE loans in Florida represent 9.1% of the total loan portfolio.

 

 

CONTACT:

DAVID J. BRYANT

 

CHIEF FINANCIAL OFFICER

 

EXANTAS CAPITAL CORP.

 

717 Fifth Avenue

 

New York, NY 10022

 

212-621-3210   

 

SOURCE Exantas Capital Corp.