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Exhibit 99.2
Real Estate Finance, Investments, Services
CAPMARK FINANCIAL GROUP INC.
("CAPMARK")
Financial Supplement
FIRST QUARTER 2008
Table of Contents
| 2 | | Notice and Forward-Looking Statement Disclosure |
| 3 | | Property Type Diversification |
| 4 | | Geographic Diversification |
| 6 | | Loan Vintage |
| 7 | | Weighted Average Loan To Value |
| 8 | | Non-Performing Assets |
| 9 | | Loan Originations |
| 10 | | Adjusted Debt to Adjusted Equity Ratio (Non-GAAP) |
| 11 | | Debt Ratings—Long Term and Short Term |
| 12 | | Capmark's Servicer Ratings |
| 13 | | Capmark's Global Servicing Portfolio |
| 14 | | Capmark Investments' Assets Under Management |
Notice
All financial information included herein is unaudited.
The information should be read in conjunction with Capmark's press release announcing First Quarter 2008 Operating Results issued May 12, 2008. The information in this Financial Supplement speaks as of the respective dates set forth herein and Capmark will not update this report after such dates.
Forward-Looking Statement Disclosure
Certain statements in this report may constitute forward-looking statements. These statements are based on management's current expectations and beliefs but are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, among others, adverse changes in debt and capital markets conditions, which may adversely impact Capmark's access to capital on acceptable terms or the value or salability of our real estate related investments; interest rate and credit spread fluctuations; adverse changes in commercial real estate markets; changes in general economic and business conditions, which will, among other things, affect the amount Capmark may earn on products and services and the availability and credit worthiness of its customers; changes in applicable laws and regulations; risks posed by competition; currency risks and other risks associated with international markets.
Such forward-looking statements are made only as of the date of this release. Capmark expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Capmark's expectations with regard thereto or changes in events, conditions, or circumstances on which any such statement is based.
####
2
| Property Type Diversification—Capmark's Global Loan Portfolio(1) | | |
|
Dollars in Millions
| | Property Type Diversification
| |
|---|
| | December 31, 2005
| | December 31, 2006
| |
|---|
Property Type
| | Capmark
Bank Loan
Portfolio(2)
| | %
| | Capmark Non-
Bank Loan
Portfolio
| | %
| | Capmark
Total Loan
Portfolio
| | %
| | Capmark
Bank Loan
Portfolio(2)
| | %
| | Capmark Non-
Bank Loan
Portfolio
| | %
| | Capmark
Total Loan
Portfolio
| | %
| |
|---|
| Multifamily | | $ | 1,173.6 | | 25.5 | % | $ | 2,167.0 | | 27.3 | % | $ | 3,340.6 | | 26.7 | % | $ | 709.6 | | 20.0 | % | $ | 1,843.0 | | 22.6 | % | $ | 2,552.6 | | 21.8 | % |
| Retail | | | 727.4 | | 15.8 | | | 1,029.0 | | 13.0 | | | 1,756.4 | | 14.0 | | | 526.3 | | 14.8 | | | 1,297.0 | | 15.9 | | | 1,823.3 | | 15.6 | |
| Office | | | 704.7 | | 15.3 | | | 1,900.9 | | 24.0 | | | 2,605.6 | | 20.8 | | | 662.1 | | 18.6 | | | 2,298.2 | | 28.2 | | | 2,960.3 | | 25.3 | |
| Hospitality | | | 1,126.3 | | 24.5 | | | 788.0 | | 9.9 | | | 1,914.3 | | 15.3 | | | 741.1 | | 20.9 | | | 646.2 | | 7.9 | | | 1,387.3 | | 11.8 | |
| Healthcare | | | 455.7 | | 9.9 | | | 984.2 | | 12.4 | | | 1,439.9 | | 11.5 | | | 568.6 | | 16.0 | | | 546.3 | | 6.7 | | | 1,114.9 | | 9.5 | |
| Mixed-Use(3),(4) | | | 407.1 | | 9.0 | | | 1,063.4 | | 13.4 | | | 1,470.5 | | 11.7 | | | 342.9 | | 9.7 | | | 1,525.9 | | 18.7 | | | 1,868.8 | | 16.0 | |
| Other | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Industrial | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Land | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Condominium | | | See note 4 | | | See note 4 | |
| | Golf Course | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | All Other | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| |
| |
| |
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| |
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| |
| Total | | $ | 4,594.8 | | 100 | % | $ | 7,932.5 | | 100 | % | $ | 12,527.3 | | 100 | % | $ | 3,550.6 | | 100 | % | $ | 8,156.6 | | 100 | % | $ | 11,707.2 | | 100 | % |
| | |
| |
| |
| |
| |
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| |
| |
| |
| |
| |
| |
| |
Dollars in Millions
| | Property Type Diversification
| |
|---|
| | December 31, 2007
| | March 31, 2008
| |
|---|
Property Type
| | Capmark
Bank Loan
Portfolio(2)
| | %
| | Capmark Non-
Bank Loan
Portfolio
| | %
| | Capmark
Total Loan
Portfolio
| | %
| | Capmark
Bank Loan
Portfolio(2)
| | %
| | Capmark Non-
Bank Loan
Portfolio
| | %
| | Capmark
Total Loan
Portfolio
| | %
| |
|---|
| Multifamily | | $ | 1,326.5 | | 20.6 | % | $ | 1,501.8 | | 18.2 | % | $ | 2,828.3 | | 19.2 | % | $ | 1,642.8 | | 23.2 | % | $ | 1,426.5 | | 17.7 | % | $ | 3,069.3 | | 20.3 | % |
| Retail | | | 639.1 | | 9.9 | | | 2,169.5 | | 26.3 | | | 2,808.6 | | 19.1 | | | 699.5 | | 9.9 | | | 2,148.3 | | 26.7 | | | 2,847.8 | | 18.8 | |
| Office | | | 1,436.0 | | 22.3 | | | 1,616.1 | | 19.6 | | | 3,052.1 | | 20.8 | | | 1,542.9 | | 21.8 | | | 1,441.4 | | 17.9 | | | 2,984.3 | | 19.7 | |
| Hospitality | | | 1,254.5 | | 19.5 | | | 303.6 | | 3.7 | | | 1,558.1 | | 10.6 | | | 1,282.9 | | 18.1 | | | 293.5 | | 3.6 | | | 1,576.4 | | 10.4 | |
| Healthcare | | | 1,130.3 | | 17.5 | | | 481.4 | | 5.8 | | | 1,611.7 | | 11.0 | | | 1,188.3 | | 16.8 | | | 449.3 | | 5.6 | | | 1,637.6 | | 10.8 | |
| Mixed-Use(3) | | | 101.8 | | 1.6 | | | 1,319.5 | | 16.0 | | | 1,421.3 | | 9.7 | | | 175.5 | | 2.5 | | | 1,248.2 | | 15.5 | | | 1,423.7 | | 9.4 | |
| Other | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Industrial | | | 87.6 | | 1.4 | | | 123.3 | | 1.5 | | | 210.9 | | 1.4 | | | 74.8 | | 1.1 | | | 175.8 | | 2.2 | | | 250.6 | | 1.7 | |
| | Land | | | 139.5 | | 2.2 | | | 273.8 | | 3.3 | | | 413.3 | | 2.8 | | | 132.2 | | 1.9 | | | 371.8 | | 4.6 | | | 504.0 | | 3.3 | |
| | Condominium | | | 35.1 | | 0.5 | | | 198.8 | | 2.4 | | | 233.9 | | 1.6 | | | 28.9 | | 0.4 | | | 161.3 | | 2.0 | | | 190.2 | | 1.3 | |
| | Golf Course | | | 274.2 | | 4.3 | | | 11.0 | | 0.1 | | | 285.2 | | 1.9 | | | 282.6 | | 4.0 | | | 11.0 | | 0.1 | | | 293.6 | | 1.9 | |
| | All Other | | | 24.1 | | 0.2 | | | 256.7 | | 3.1 | | | 280.8 | | 1.9 | | | 28.7 | | 0.3 | | | 323.4 | | 4.1 | | | 352.1 | | 2.4 | |
| | |
| |
| |
| |
| |
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| |
| |
| |
| |
| |
| |
| |
| Total | | $ | 6,448.7 | | 100 | % | $ | 8,255.5 | | 100 | % | $ | 14,704.2 | | 100 | % | $ | 7,079.1 | | 100 | % | $ | 8,050.5 | | 100 | % | $ | 15,129.6 | | 100 | % |
| | |
| |
| |
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| |
| |
| |
| |
| |
| |
| |
- (1)
- Capmark's loan portfolio consists of all loans (both held for investment and held for sale) reflected on Capmark's consolidated balance sheet, before allowance for loan losses.
- (2)
- Capmark Bank loans consist only of loans owned by Capmark Bank, our Utah industrial bank subsidiary.
- (3)
- "Mixed-use" consists of loans secured by properties with more than one commercial real estate property type and loans secured by pools of mixed property types.
- (4)
- As of December 31, 2005 and 2006, "Mixed Use" includes the property types included in the "Other" heading.
3
| Geographic Diversification—Capmark's Global Loan Portfolio(1) | | |
|
Dollars in Millions
| | Geographic Diversification
| |
|---|
| | December 31, 2005
| |
|---|
Location
| | Capmark Bank Loan Portfolio(2)
| | %
| | Capmark Non-Bank Loan Portfolio
| | %
| | Capmark Total Loan Portfolio
| | %
| |
|---|
| Southern California | | $ | 479.0 | | 10.4 | % | $ | 964.0 | | 12.2 | % | $ | 1,443.0 | | 11.5 | % |
| Metropolitan New York | | | 352.2 | | 7.7 | | | 364.7 | | 4.6 | | | 716.9 | | 5.7 | |
| Washington DC | | | 270.3 | | 5.9 | | | 287.2 | | 3.6 | | | 557.5 | | 4.5 | |
| Philadelphia | | | 181.8 | | 4.0 | | | 245.5 | | 3.1 | | | 427.3 | | 3.4 | |
| Northern California | | | 94.2 | | 2.0 | | | 271.0 | | 3.4 | | | 365.2 | | 2.9 | |
| Orlando | | | 240.1 | | 5.2 | | | 98.7 | | 1.2 | | | 338.8 | | 2.7 | |
| Dallas | | | 86.1 | | 1.9 | | | 175.3 | | 2.2 | | | 261.4 | | 2.1 | |
| Other—North America | | | 2,891.1 | | 62.9 | | | 2,938.8 | | 37.0 | | | 5,829.9 | | 46.5 | |
| Europe | | | — | | — | | | 1,773.3 | | 22.4 | | | 1,773.3 | | 14.2 | |
| Asia | | | — | | — | | | 814.0 | | 10.3 | | | 814.0 | | 6.5 | |
| | |
| |
| |
| |
| |
| |
| |
| Total | | $ | 4,594.8 | | 100 | % | $ | 7,932.5 | | 100 | % | $ | 12,527.3 | | 100 | % |
| | |
| |
| |
| |
| |
| |
| |
Dollars in Millions
| | Geographic Diversification
| |
|---|
| | December 31, 2006
| |
|---|
Location
| | Capmark Bank Loan Portfolio(2)
| | %
| | Capmark Non-Bank Loan Portfolio
| | %
| | Capmark Total Loan Portfolio
| | %
| |
|---|
| Southern California | | $ | 488.2 | | 13.8 | % | $ | 687.7 | | 8.4 | % | $ | 1,175.9 | | 10.0 | % |
| Metropolitan New York | | | 147.6 | | 4.2 | | | 273.4 | | 3.4 | | | 421.0 | | 3.6 | |
| Washington DC | | | 111.8 | | 3.1 | | | 235.7 | | 2.9 | | | 347.5 | | 3.0 | |
| Boston | | | 189.4 | | 5.3 | | | 102.0 | | 1.3 | | | 291.4 | | 2.5 | |
| Phoenix | | | 91.9 | | 2.6 | | | 194.5 | | 2.4 | | | 286.4 | | 2.4 | |
| London | | | — | | 0.0 | | | 276.1 | | 3.4 | | | 276.1 | | 2.4 | |
| Dallas | | | 92.1 | | 2.6 | | | 166.5 | | 2.0 | | | 258.6 | | 2.2 | |
| Other—North America | | | 2,429.6 | | 68.4 | | | 2,761.6 | | 33.8 | | | 5,191.2 | | 44.3 | |
| Europe—Other | | | — | | — | | | 2,547.3 | | 31.2 | | | 2,547.3 | | 21.8 | |
| Asia | | | — | | — | | | 911.8 | | 11.2 | | | 911.8 | | 7.8 | |
| | |
| |
| |
| |
| |
| |
| |
| Total | | $ | 3,550.6 | | 100 | % | $ | 8,156.6 | | 100 | % | $ | 11,707.2 | | 100 | % |
| | |
| |
| |
| |
| |
| |
| |
4
| Geographic Diversification—Capmark's Global Loan Portfolio(1) | | |
|
Dollars in Millions
| | Geographic Diversification
| |
|---|
| | December 31, 2007
| |
|---|
Location
| | Capmark Bank Loan Portfolio(2)
| | %
| | Capmark Non-Bank Loan Portfolio
| | %
| | Capmark Total Loan Portfolio
| | %
| |
|---|
| Southern California | | $ | 618.4 | | 9.6 | % | $ | 547.8 | | 6.6 | % | $ | 1,166.2 | | 7.9 | % |
| Metropolitan NY | | | 415.9 | | 6.4 | | | 255.1 | | 3.1 | | | 671.0 | | 4.6 | |
| Phoenix | | | 266.1 | | 4.1 | | | 307.7 | | 3.7 | | | 573.8 | | 3.9 | |
| Washington DC | | | 264.0 | | 4.1 | | | 279.3 | | 3.4 | | | 543.3 | | 3.7 | |
| Dallas | | | 308.6 | | 4.8 | | | 158.6 | | 1.9 | | | 467.2 | | 3.2 | |
| Atlanta | | | 256.1 | | 4.0 | | | 155.4 | | 1.9 | | | 411.5 | | 2.8 | |
| Philadelphia | | | 318.5 | | 4.9 | | | 67.0 | | 0.8 | | | 385.5 | | 2.6 | |
| Other—North America | | | 4,001.1 | | 62.1 | | | 2,638.1 | | 32.0 | | | 6,639.2 | | 45.2 | |
| Europe | | | — | | — | | | 3,036.4 | | 36.8 | | | 3,036.4 | | 20.6 | |
| Asia | | | — | | — | | | 810.1 | | 9.8 | | | 810.1 | | 5.5 | |
| | |
| |
| |
| |
| |
| |
| |
| Total | | $ | 6,448.7 | | 100 | % | $ | 8,255.5 | | 100 | % | $ | 14,704.2 | | 100 | % |
| | |
| |
| |
| |
| |
| |
| |
Dollars in Millions
| | Geographic Diversification
| |
|---|
| | March 31, 2008
| |
|---|
Location
| | Capmark Bank Loan Portfolio(2)
| | %
| | Capmark Non-Bank Loan Portfolio
| | %
| | Capmark Total Loan Portfolio
| | %
| |
|---|
| Southern California | | $ | 614.7 | | 8.7 | % | $ | 601.3 | | 7.5 | % | $ | 1,216.0 | | 8.0 | % |
| Metropolitan NY | | | 455.5 | | 6.4 | | | 242.8 | | 3.0 | | | 698.3 | | 4.6 | |
| Washington DC | | | 354.4 | | 5.0 | | | 296.0 | | 3.7 | | | 650.4 | | 4.3 | |
| Phoenix | | | 284.2 | | 4.0 | | | 317.6 | | 3.9 | | | 601.8 | | 4.0 | |
| Dallas | | | 358.0 | | 5.1 | | | 152.4 | | 1.9 | | | 510.4 | | 3.4 | |
| Atlanta | | | 306.0 | | 4.3 | | | 163.0 | | 2.0 | | | 469.0 | | 3.1 | |
| Philadelphia | | | 336.5 | | 4.8 | | | 63.5 | | 0.8 | | | 400.0 | | 2.6 | |
| Other—North America(3) | | | 4,369.8 | | 61.7 | | | 2,398.9 | | 29.9 | | | 6,768.7 | | 44.7 | |
| Europe | | | — | | — | | | 2,943.3 | | 36.6 | | | 2,943.3 | | 19.5 | |
| Asia | | | — | | — | | | 871.7 | | 10.7 | | | 871.7 | | 5.8 | |
| | |
| |
| |
| |
| |
| |
| |
| Total | | $ | 7,079.1 | | 100 | % | $ | 8,050.5 | | 100 | % | $ | 15,129.6 | | 100 | % |
| | |
| |
| |
| |
| |
| |
| |
- (1)
- Capmark's loan portfolio consists of all loans (both held for investment and held for sale) reflected on Capmark's consolidated balance sheet, before allowance for loan losses.
- (2)
- Capmark Bank loans consist only of loans owned by Capmark Bank, our Utah industrial bank subsidiary.
- (3)
- No one location represents more than 3.6% of the total portfolio.
5
| Loan Vintage—Capmark's Global Loan Portfolio(1) | | |
|
Dollars in Millions
| | Loan Diversification by Origination Vintage
| |
|---|
Vintage Year
| | 2007
Year End Loan
Portfolio
| | %
| | 2008 Q1
Qtr End Loan
Portfolio
| | %
| |
|---|
| 2008 | | $ | — | | — | % | $ | 992.8 | | 6.6 | % |
| 2007 | | | 9,131.0 | | 62.2 | | | 8,819.5 | | 58.3 | |
| 2006 | | | 3,697.2 | | 25.1 | | | 3,545.9 | | 23.4 | |
| 2005 | | | 1,133.0 | | 7.7 | | | 1,063.7 | | 7.0 | |
| 2004 | | | 202.2 | | 1.4 | | | 182.9 | | 1.2 | |
| 2003 | | | 39.7 | | 0.3 | | | 39.0 | | 0.3 | |
| 2002 | | | 5.5 | | 0.0 | | | 5.0 | | 0.0 | |
| 2001 | | | 59.1 | | 0.4 | | | 65.3 | | 0.4 | |
| 2000 & Prior | | | 78.1 | | 0.5 | | | 54.7 | | 0.4 | |
| Non-Performing Loans Acquired(2) | | | 358.4 | | 2.4 | | | 360.8 | | 2.4 | |
| | |
| |
| |
| |
| |
| Totals | | $ | 14,704.2 | | 100 | % | $ | 15,129.6 | | 100 | % |
| | |
| |
| |
| |
| |
- (1)
- Capmark's loan portfolio consists of all loans (both held for investment and held for sale) reflected on Capmark's consolidated balance sheet, before allowance for loan losses.
- (2)
- Acquired non-performing loans do not have a specified vintage year.
6
| Weighted Average Loan To Value—Capmark's Global Loan Portfolio | | |
|
Loan To Value (LTV) statistics(1)
| | Q4
2006
| | Q1
2007
| | Q2
2007
| | Q3
2007
| | Q4
2007
| | Q1
2008
| |
|---|
| | WA Loan to Value (%)—Capmark Non Bank Loan Portfolio | | 70.9 | % | 72.2 | % | 74.5 | % | 76.0 | % | 73.9 | % | 72.3 | % |
| | WA Loan to Value (%)—Capmark Bank Loan Portfolio | | 65.5 | % | 65.1 | % | 68.2 | % | 66.3 | % | 66.2 | % | 65.2 | % |
| WA Loan to Value (%)—All Loans | | 69.2 | % | 70.2 | % | 71.9 | % | 71.7 | % | 70.4 | % | 68.9 | % |
- (1)
- Collateral values used for determination of weighted average LTV are derived from appraisals at the time of the origination of a loan or any subsequent appraisal ordered and received by Capmark. For property-repositioning and construction financings, the LTV percentages are typically based on the total commitment amount inclusive of future funding and a projected, appraised future stabilized value.
7
| Non-Performing Assets—Capmark's Global Loan Portfolio | | |
|
| | Non-Performing Asset Statistics
| |
|---|
Dollars in Millions
| | December 31,
| | Q1
| |
|---|
Non-Performing Assets(1)
| |
|---|
| | 2005
| | 2006
| | 2007
| | 2008
| |
|---|
| Number of Loans | | | 20 | | | 21 | | | 22 | | | 22 | |
| Gross unpaid principal balance | | $ | 179.6 | | $ | 214.5 | | $ | 259.3 | | $ | 288.8 | |
| Basis adjustments before allowance for loan losses(2) | | | (44.9 | ) | | (52.6 | ) | | (50.9 | ) | | (74.1 | ) |
| Specifically assigned allowance for loan losses | | | (20.9 | ) | | (55.5 | ) | | (6.9 | ) | | (13.4 | ) |
| | |
| |
| |
| |
| |
| Carrying value | | $ | 113.8 | | $ | 106.4 | | $ | 201.5 | | $ | 201.3 | |
| | |
| |
| |
| |
| |
| Ratio of non-performing assets to total loans and foreclosed real estate(3) | | | 0.9 | % | | 0.9 | % | | 1.4 | % | | 1.3 | % |
| Carrying value as a percentage of total assets | | | 0.6 | % | | 0.5 | % | | 0.9 | % | | 0.9 | % |
Capmark's historic loss severity on resolved non-performing loans from 2003 through March 31, 2008 was 25.1%(4). This compares to the industry average losses over a similar time period of 31.1%.(5)
- (1)
- Non-Performing Assets include all originated loans on non-accrual status and foreclosed real estate collateral. Non-Performing Assets do not include any non-performing loans acquired for investment purposes.
- (2)
- Basis adjustments include valuation charges, impacts from pushdown accounting, and other discounts to carrying value.
- (3)
- This ratio represents our "Non-Performing Assets" divided by our total loans (performing and non-performing) and real estate acquired through foreclosure on originated loans as of that period. All non-performing assets are assigned and allocated a specific allowance for loan losses. Non-performing assets are reported net of their actual specific reserves.
- (4)
- Loss statistics are based on senior mortgage loans as well as subordinate and mezzanine loans excluding a joint venture that invested in non-performing and under-performing loans in Germany.
- (5)
- Source of data is RealPoint as of December 2007 and is reflective of delinquencies experienced in CMBS risk exposures.
8
| Loan Origination—Capmark's Global Loan Portfolio | | |
|
The following table presents information concerning the volume of global loans originated by Capmark by type of lending during the periods indicated.
Dollars in Millions
| | Loan Origination Statistics
| |
|---|
| | Year Ended December 31,
| |
|---|
| | 2005
| | 2006
| | 2007
| |
|---|
Lending Type
| | Loan Commitment Amount
| | %
| | Loan Commitment Amount
| | %
| | Loan Commitment Amount
| | %
| |
|---|
| Capmark Bank (US Only) | | $ | 5,914.0 | | 19.8 | % | $ | 4,962.7 | | 16.6 | % | $ | 8,928.2 | | 30.6 | % |
| Capmark Non-Bank(1) | | | 10,449.0 | | 35.1 | | | 11,904.8 | | 39.9 | | | 7,551.3 | | 25.8 | |
| GSE and Agency Lending | | | 3,347.3 | | 11.2 | | | 3,316.5 | | 11.1 | | | 5,535.2 | | 18.9 | |
| Third-Party | | | 10,094.3 | | 33.9 | | | 9,681.2 | | 32.4 | | | 7,208.2 | | 24.7 | |
| | |
| |
| |
| |
| |
| |
| |
| Total | | $ | 29,804.6 | | 100 | % | $ | 29,865.2 | | 100 | % | $ | 29,222.9 | | 100 | % |
| | |
| |
| |
| |
| |
| |
| |
| | Quarter Ended March 31,
| |
|---|
| | 2007
| | 2008
| |
|---|
Lending Type
| | Loan Commitment Amount
| | %
| | Loan Commitment Amount
| | %
| |
|---|
| Capmark Bank (US Only) | | $ | 2,761.8 | | 31.3 | % | $ | 616.6 | | 23.0 | % |
| Capmark Non-Bank(1) | | | 2,257.4 | | 25.6 | | | 166.8 | | 6.2 | |
| GSE and Agency Lending | | | 1,907.0 | | 21.6 | | | 1,251.6 | | 46.7 | |
| Third-Party | | | 1,894.1 | | 21.5 | | | 646.2 | | 24.1 | |
| | |
| |
| |
| |
| |
| Total | | $ | 8,820.3 | | 100 | % | $ | 2,681.2 | | 100 | % |
| | |
| |
| |
| |
| |
- (1)
- Capmark Non-Bank includes all Capmark loan originations other than originations by Capmark Bank, our Utah industrial bank subsidiary.
9
| Adjusted Debt To Adjusted Equity Ratio (Non-GAAP) | | |
|
Consolidated Financial Statements
Dollars in Millions
| | December 31,
| |
| |
| |
|---|
Adjusted Non-GAAP Debt to Equity Ratio Components
| | March 31,
2008
| | Pro Forma
March 31, 2008
| |
|---|
| | 2005
| | 2006
| | 2007
| |
|---|
| | Total indebtedness (GAAP) | | $ | 15,788 | | $ | 15,276 | | $ | 17,693 | | $ | 18,555 | | $ | 17,124 | (1) |
| Less: | | | | | | | | | | | | | | | | |
| | Junior subordinated debentures | | | — | | | 250 | | | 250 | | | 250 | | | 250 | |
| | Collateralized borrowings in securitization trusts | | | 1,232 | | | 1,477 | | | 261 | | | 262 | | | 262 | |
| | Consolidated LIHTC partnership debt | | | 196 | | | 324 | | | 336 | | | 302 | | | 302 | |
| | |
| |
| |
| |
| |
| |
| | Adjusted debt (Non-GAAP) | | $ | 14,360 | | $ | 13,225 | | $ | 16,846 | | $ | 17,741 | | $ | 16,310 | |
| | |
| |
| |
| |
| |
| |
| | Total stockholders' equity (GAAP) | | $ | 1,997 | | $ | 2,229 | | $ | 2,507 | | $ | 2,280 | | $ | 2,280 | |
| Plus: | | | | | | | | | | | | | | | | |
| | Trust preferred securities | | | — | | | 250 | | | 250 | | | 250 | | | 250 | |
| | Mezzanine equity | | | — | | | 102 | | | 102 | | | 101 | | | 101 | |
| | |
| |
| |
| |
| |
| |
| | Adjusted equity (Non-GAAP) | | $ | 1,997 | | $ | 2,581 | | $ | 2,859 | | $ | 2,631 | | $ | 2,631 | |
| | |
| |
| |
| |
| |
| |
| Debt to equity ratio (GAAP) | | | 7.9x | | | 6.9x | | | 7.1x | | | 8.1x | | | 7.5x | |
| Adjusted debt to equity ratio (Non-GAAP) | | | 7.2x | | | 5.1x | | | 5.9x | | | 6.7x | | | 6.2x | |
- (1)
- Pro-forma March 31, 2008 amounts and ratios reflect the sale of interests in Capmark's European loan portfolio in April 2008 and the application of a majority of the sale proceeds to the repayment of indebtedness.
Our ratio of adjusted debt to adjusted equity is a non-GAAP financial measure that our management uses to evaluate the degree of financial leverage present in our capital structure. Our measure may not be comparable to measurements used by other companies, including other finance companies, and should not be considered as a substitute for, or an alternative to, a ratio of total indebtedness to total stockholders' equity calculated on a GAAP basis. Our GAAP debt to equity ratio is the ratio of our total indebtedness to total stockholders' equity.
In calculating adjusted debt for purposes of this non-GAAP ratio, we adjust GAAP total indebtedness to reflect the exclusion of the junior subordinated debentures underlying the trust preferred securities issued by Capmark Trust and the portion of our indebtedness relating to securitization transactions and indebtedness related to certain Low Income Housing Tax Credit (LIHTC) partnership interests, which is required to be consolidated under GAAP but is not considered to be indebtedness under our senior credit facility.
In calculating adjusted equity for purposes of this non-GAAP ratio, we adjust GAAP total stockholders' equity to reflect the inclusion of the trust preferred securities issued by Capmark Trust and the mezzanine equity we issued to our employees and directors, which are commonly considered by investors and rating agencies to be components of equity.
10
| Capmark's Debt Ratings—Long Term And Short Term | | |
|
The following table presents the credit ratings and ratings outlook assigned to our unsecured indebtedness by Moody's, S&P and Fitch as of the date of this report. Credit ratings are opinions of a rated entity's ability to meet its ongoing obligations. Credit ratings are not recommendations to buy, sell or hold securities and are subject to revision or withdrawal at any time by the assigning rating agency. Each agency's rating should be evaluated independently of any other agency's rating.
Ratings as of May 12, 2008
Long Term Senior Unsecured Debt Ratings
| | Rating
| | Outlook
|
|---|
| Standard & Poor's | | BBB- | | Stable |
| Moody's | | Baa3 | | Stable |
| Fitch Ratings | | BBB | | Stable |
Short Term Senior Unsecured Debt Ratings
| | Rating
| | Outlook
|
|---|
| Standard & Poor's | | A3 | | Stable |
| Moody's | | — | | — |
| Fitch Ratings | | F3 | | Stable |
11
| Capmark's Servicer Ratings | | |
|
| U.S. primary servicing | | | | UK / Ireland primary/master servicing | | |
| |
(1)Standard & Poor's |
|
Strong |
|
(1)Standard & Poor's |
|
Strong |
| |
(2)Fitch Ratings |
|
CPS1- |
|
(2)Fitch Ratings |
|
CPS1- |
| |
(3)DBRS |
|
Superior |
|
(3)DBRS |
|
Superior |
U.S. master servicing |
|
|
|
UK / Ireland special servicing |
|
|
| |
(1)Standard & Poor's |
|
Strong |
|
(1)Standard & Poor's |
|
Strong |
| |
(2)Fitch Ratings |
|
CMS1- |
|
(2)Fitch Ratings |
|
CSS2 |
| |
(3)DBRS |
|
Superior |
|
(3)DBRS |
|
Not Rated |
U.S. special servicing |
|
|
|
|
|
|
| |
(1)Standard & Poor's |
|
Strong |
|
|
|
|
| |
(2)Fitch Ratings |
|
CSS1 |
|
|
|
|
| |
(3)DBRS |
|
Not Rated |
|
|
|
|
- (1)
- "Strong" is the highest of five ratings given to servicing companies by S&P.
- (2)
- Companies with a level "1" rating, the highest category of rating given a servicer of a commercial real estate transaction by Fitch, are expected to have all areas of their company operating at "top efficiency and productivity" and must have "proven abilities and performance of the highest standards."
- (3)
- "Superior" is the highest of four ratings given servicing companies by DBRS.
12
| Capmark's Global Servicing Portfolio | | |
|
Dollars in Millions
| | December 31,
|
|---|
| | 2005
| | 2006
| | 2007
|
|---|
Global Servicing Portfolio
| | # of Loans
| | UPB
| | # of Loans
| | UPB
| | # of Loans
| | UPB
|
|---|
| Master / Primary / Special | | 15,515 | | $ | 62,318 | | 13,881 | | $ | 57,888 | | 12,797 | | $ | 75,779 |
| Master / Primary | | 38,376 | | | 168,342 | | 38,716 | | | 215,400 | | 37,381 | | | 261,175 |
| Special | | 6,103 | | | 45,310 | | 5,529 | | | 37,620 | | 4,994 | | | 34,776 |
| | |
| |
| |
| |
| |
| |
|
| Total | | 59,994 | | $ | 275,970 | | 58,126 | | $ | 310,908 | | 55,172 | | $ | 371,730 |
| | |
| |
| |
| |
| |
| |
|
Originated |
|
8,987 |
|
$ |
68,338 |
|
9,551 |
|
$ |
80,290 |
|
9,514 |
|
$ |
91,927 |
| Acquired | | 29,307 | | | 166,702 | | 28,540 | | | 187,536 | | 27,100 | | | 234,163 |
| Contracted | | 21,700 | | | 40,930 | | 20,035 | | | 43,082 | | 18,558 | | | 45,640 |
| | |
| |
| |
| |
| |
| |
|
| Total | | 59,994 | | $ | 275,970 | | 58,126 | | $ | 310,908 | | 55,172 | | $ | 371,730 |
| | |
| |
| |
| |
| |
| |
|
Dollars in Millions
| | March 31,
|
|---|
| | 2007
| | 2008
|
|---|
Global Servicing Portfolio
| | # of Loans
| | UPB
| | # of Loans
| | UPB
|
|---|
| Master / Primary / Special | | 13,258 | | $ | 54,111 | | 12,517 | | $ | 79,537 |
| Master / Primary | | 40,000 | | | 242,525 | | 37,019 | | | 265,300 |
| Special | | 5,432 | | | 37,589 | | 4,805 | | | 35,343 |
| | |
| |
| |
| |
|
| Total | | 58,690 | | $ | 334,225 | | 54,341 | | $ | 380,180 |
| | |
| |
| |
| |
|
Originated |
|
9,735 |
|
$ |
86,025 |
|
9,567 |
|
$ |
93,191 |
| Acquired | | 28,136 | | | 204,179 | | 25,773 | | | 239,758 |
| Contracted | | 20,819 | | | 44,021 | | 19,001 | | | 47,231 |
| | |
| |
| |
| |
|
| Total | | 58,690 | | $ | 334,225 | | 54,341 | | $ | 380,180 |
| | |
| |
| |
| |
|
13
| Capmark Investments' Assets Under Management | | |
|
| | December 31,
| |
|
|---|
Dollars in Millions(1)
| | March 31, 2008
|
|---|
| | 2005
| | 2006
| | 2007
|
|---|
| Proprietary Investments: | | | | | | | | | | | | |
| | Real estate equity | | $ | 398.8 | | $ | 232.1 | | $ | 191.8 | | $ | 176.6 |
| | CMBS: below investment grade | | | 192.0 | | | 224.7 | | | 76.5 | | | 70.6 |
| | CMBS: investment grade | | | 22.4 | | | 19.3 | | | 8.8 | | | 4.9 |
| | ABS | | | — | | | 34.4 | | | 2.6 | | | 1.8 |
| | Whole loans | | | 122.0 | | | 48.2 | | | 47.5 | | | 52.5 |
| | Mezzanine debt | | | — | | | — | | | 64.4 | | | 68.4 |
| | Commercial discount loans | | | — | | | — | | | 5.5 | | | 4.7 |
| | CDOs | | | 124.6 | | | 65.9 | | | 66.9 | | | 60.9 |
| | Funds invested in real estate equity | | | 191.3 | | | 286.1 | | | 422.2 | | | 443.1 |
| | Funds invested in real estate debt instruments | | | 39.9 | | | 78.9 | | | 100.1 | | | 98.2 |
| | |
| |
| |
| |
|
| Subtotal Proprietary Investments | | | 1,091.0 | | | 989.6 | | | 986.3 | | | 981.7 |
| Third Party Investments | | | 8,624.1 | | | 8,799.3 | | | 9,328.2 | | | 9,210.2 |
| | |
| |
| |
| |
|
| Total Assets Under Management | | $ | 9,715.1 | | $ | 9,788.9 | | $ | 10,314.5 | | $ | 10,191.9 |
| | |
| |
| |
| |
|
Number of Clients |
|
|
41 |
|
|
33 |
|
|
35 |
|
|
35 |
|
Total market value of proprietary investments with RMBS exposure |
|
|
|
|
|
|
|
$ |
95.0 |
|
$ |
85.7 |
- (1)
- Amounts are subject to change based on the receipt of financial information for the underlying investments subsequent to the completion of the financial report for the applicable period.
14
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