Exhibit 99.2
CAPMARK FINANCIAL GROUP INC.
(“CAPMARK”)
Financial Supplement
FOURTH QUARTER 2008
Table of Contents
| | Page # |
Notice and Forward-Looking Statement Disclosure | | 2 |
Property Type Diversification | | 3 |
Geographic Diversification | | 4 |
Loan Vintage | | 5 |
Funded Loans and Unfunded Commitments | | 6 |
Weighted Average Loan To Value | | 7 |
Non-Performing Assets | | 8 |
Loan Maturities | | 9 |
Loan Originations | | 10 |
Capmark’s Debt Ratings - Long Term and Short Term | | 11 |
Capmark’s Servicer Ratings | | 12 |
Capmark’s Global Servicing Portfolio | | 13 |
Capmark Investments’ Assets Under Management | | 14 |
| | 
|
Notice | | |
All financial information included herein is unaudited.
The information should be read in conjunction with Capmark’s press release announcing its fourth quarter 2008 financial results issued April 24, 2009. The information in this Financial Supplement speaks as of the respective dates set forth herein and Capmark disclaims any obligation to 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 | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 4,594.8 | | 100.0 | % | $ | 7,932.5 | | 100.0 | % | $ | 12,527.3 | | 100.0 | % | $ | 3,550.6 | | 100.0 | % | $ | 8,156.6 | | 100.0 | % | $ | 11,707.2 | | 100.0 | % |
Dollars in Millions
| | Property Type Diversification | |
| | December 31, 2007 | | December 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 | | $ | 1,317.8 | | 20.8 | % | $ | 1,503.3 | | 18.0 | % | $ | 2,821.1 | | 19.2 | % | $ | 1,423.9 | | 17.7 | % | $ | 943.6 | | 22.2 | % | $ | 2,367.5 | | 19.3 | % |
Retail | | 635.9 | | 10.0 | | 2,171.2 | | 26.0 | | 2,807.1 | | 19.1 | | 680.3 | | 8.5 | | 626.6 | | 14.8 | | 1,306.9 | | 10.6 | |
Office | | 1,428.4 | | 22.4 | | 1,616.1 | | 19.3 | | 3,044.5 | | 20.7 | | 1,788.0 | | 22.2 | | 747.4 | | 17.6 | | 2,535.4 | | 20.6 | |
Hospitality | | 1,238.4 | | 19.5 | | 311.3 | | 3.7 | | 1,549.7 | | 10.5 | | 1,921.0 | | 23.9 | | 227.1 | | 5.4 | | 2,148.1 | | 17.5 | |
Healthcare | | 1,088.9 | | 17.2 | | 481.4 | | 5.8 | | 1,570.3 | | 10.7 | | 1,365.7 | | 17.0 | | 334.3 | | 7.9 | | 1,700.0 | | 13.8 | |
Mixed-Use(3) | | 101.5 | | 1.6 | | 1,319.5 | | 15.8 | | 1,421.0 | | 9.7 | | 163.1 | | 2.0 | | 645.2 | | 15.2 | | 808.3 | | 6.6 | |
Other | | | | | | | | | | | | | | | | | | | | | | | | | |
Industrial | | 87.5 | | 1.4 | | 123.3 | | 1.5 | | 210.8 | | 1.4 | | 110.0 | | 1.4 | | 137.2 | | 3.2 | | 247.2 | | 2.0 | |
Land | | 136.7 | | 2.2 | | 273.8 | | 3.2 | | 410.5 | | 2.8 | | 96.1 | | 1.2 | | 291.6 | | 6.9 | | 387.7 | | 3.2 | |
Condominium | | 35.0 | | 0.6 | | 198.8 | | 2.4 | | 233.8 | | 1.6 | | 36.0 | | 0.4 | | 154.2 | | 3.6 | | 190.2 | | 1.6 | |
Golf Course | | 271.8 | | 4.3 | | 11.0 | | 0.1 | | 282.8 | | 1.9 | | 308.2 | | 3.8 | | — | | 0.0 | | 308.2 | | 2.5 | |
All Other | | 1.7 | | 0.0 | | 350.9 | | 4.2 | | 352.6 | | 2.4 | | 152.5 | | 1.9 | | 134.9 | | 3.2 | | 287.4 | | 2.3 | |
Total | | $ | 6,343.6 | | 100.0 | % | $ | 8,360.6 | | 100.0 | % | $ | 14,704.2 | | 100.0 | % | $ | 8,044.8 | | 100.0 | % | $ | 4,242.1 | | 100.0 | % | $ | 12,286.9 | | 100.0 | % |
(1) Capmark’s loan portfolio consists of all loans (held for investment before allowance for loan losses and held for sale net of mark to market adjustments) reflected on Capmark’s consolidated balance sheet.
(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 | | 100.0 | % | $ | 7,932.5 | | 100.0 | % | $ | 12,527.3 | | 100.0 | % |
| | 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 | | 100.0 | % | $ | 8,156.6 | | 100.0 | % | $ | 11,707.2 | | 100.0 | % |
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 | | $ | 612.5 | | 9.7 | % | $ | 549.5 | | 6.6 | % | $ | 1,162.0 | | 7.9 | % |
Metropolitan NY | | 411.2 | | 6.5 | | 256.6 | | 3.0 | | 667.8 | | 4.5 | |
Phoenix | | 265.4 | | 4.1 | | 307.7 | | 3.7 | | 573.1 | | 3.9 | |
Washington DC | | 263.6 | | 4.1 | | 279.3 | | 3.3 | | 542.9 | | 3.7 | |
Dallas | | 305.8 | | 4.8 | | 158.6 | | 1.9 | | 464.4 | | 3.2 | |
Atlanta | | 255.1 | | 4.0 | | 155.4 | | 1.9 | | 410.5 | | 2.8 | |
Philadelphia | | 314.4 | | 5.0 | | 67.0 | | 0.8 | | 381.4 | | 2.6 | |
Other - North America | | 3,915.6 | | 61.8 | | 2,740.0 | | 32.8 | | 6,655.6 | | 45.3 | |
Europe | | — | | — | | 3,036.4 | | 36.3 | | 3,036.4 | | 20.6 | |
Asia | | — | | — | | 810.1 | | 9.7 | | 810.1 | | 5.5 | |
| | | | | | | | | | | | | |
Total | | $ | 6,343.6 | | 100.0 | % | $ | 8,360.6 | | 100.0 | % | $ | 14,704.2 | | 100.0 | % |
| | December 31, 2008 | |
Location | | Capmark
Bank Loan
Portfolio(2) | | % | | Capmark Non-
Bank Loan
Portfolio | | % | | Capmark
Total Loan
Portfolio | | % | |
| | | | | | | | | | | | | |
Southern California | | $ | 689.0 | | 8.6 | % | $ | 372.5 | | 8.8 | % | $ | 1,061.5 | | 8.7 | % |
Metropolitan NY | | 490.4 | | 6.1 | | 250.6 | | 5.9 | | 741.0 | | 6.0 | |
Phoenix AZ | | 339.5 | | 4.2 | | 286.1 | | 6.7 | | 625.6 | | 5.1 | |
Washington DC | | 331.5 | | 4.1 | | 281.1 | | 6.6 | | 612.6 | | 5.0 | |
Dallas TX | | 414.8 | | 5.2 | | 80.3 | | 1.9 | | 495.1 | | 4.0 | |
Chicago IL | | 403.6 | | 5.0 | | 44.8 | | 1.1 | | 448.4 | | 3.6 | |
San Francisco CA | | 397.4 | | 4.9 | | 27.2 | | 0.6 | | 424.6 | | 3.5 | |
Other - North America (3) | | 4,978.6 | | 61.9 | | 1,622.2 | | 38.3 | | 6,600.8 | | 53.7 | |
Europe (4) | | — | | — | | 483.1 | | 11.4 | | 483.1 | | 3.9 | |
Asia | | — | | — | | 794.2 | | 18.7 | | 794.2 | | 6.5 | |
| | | | | | | | | | | | | |
Total | | $ | 8,044.8 | | 100.0 | % | $ | 4,242.1 | | 100.0 | % | $ | 12,286.9 | | 100.0 | % |
(1) Capmark’s loan portfolio consists of all loans (held for investment before allowance for loan losses and held for sale net of mark to market adjustments) reflected on Capmark’s consolidated balance sheet.
(2) Capmark Bank loans consist only of loans owned by Capmark Bank, our Utah industrial bank subsidiary.
(3) No one location represents more than 3.5% of the total portfolio.
(4) Non-Bank amount includes $185.7 million of assets related to certain securitizations that are required under GAAP rules to be consolidated on Capmark’s balance sheet.
4
Loan Vintage - Capmark’s Global Loan Portfolio (1)
Dollars in Millions
| | Loan Diversification by Origination Vintage | |
Vintage Year | | December 31, 2007
Loan Portfolio (3) | | % | | December 31, 2008
Loan Portfolio (3) | | % | |
| | | | | | | | | |
2008 | | $ | — | | — | % | $ | 1,979.1 | | 16.0 | % |
2007 | | 9,136.8 | | 62.1 | | 6,608.6 | | 53.8 | |
2006 | | 3,692.6 | | 25.1 | | 2,557.0 | | 20.8 | |
2005 | | 1,131.9 | | 7.7 | | 634.7 | | 5.2 | |
2004 | | 202.0 | | 1.4 | | 93.9 | | 0.8 | |
2003 & Prior | | 182.5 | | 1.3 | | 108.3 | | 0.9 | |
Acquired Non-Performing Loans (2) | | 358.4 | | 2.4 | | 305.3 | | 2.5 | |
| | | | | | | | | |
Totals | | $ | 14,704.2 | | 100.0 | % | $ | 12,286.9 | | 100.0 | % |
(1) Capmark’s loan portfolio consists of all loans (held for investment before allowance for loan losses and held for sale net of mark to market adjustments) reflected on Capmark’s consolidated balance sheet.
(2) Acquired non-performing loans are not assigned a vintage year.
(3) Unpaid principal balance less the amount of any market valuation adjustments and other discounts to carrying value.
5
Summary of Funded Loans / Unfunded Commitments - Capmark’s Global Loan Portfolio (1)
Dollars in Millions
| | Portfolio as of December 31, 2008 | | Unfunded Commitment | |
| | Capmark Total
Loan Portfolio | | % of Funded
Total | | Unfunded
Commitment | | Total Potential
Exposure | | as of September 30,
2008 | |
| | | | | | | | | | | |
Capmark Bank Loans (2) | | | | | | | | | | | |
Agency | | $ | 169.4 | | 2.1 | % | $ | 16.3 | | $ | 185.7 | | $ | 56.3 | |
Construction | | 1,130.8 | | 14.1 | | 626.2 | | 1,757.0 | | 826.1 | |
Property Type(4) | | | | | | | | | | | |
Office | | 1,679.7 | | 20.9 | | 317.2 | | 1,996.9 | | 352.6 | |
Multifamily | | 1,157.6 | | 14.4 | | 87.6 | | 1,245.2 | | 104.3 | |
Retail | | 470.6 | | 5.8 | | 78.4 | | 549.0 | | 78.9 | |
All Other | | 3,436.7 | | 42.7 | | 119.1 | | 3,555.8 | | 122.8 | |
| | | | | | | | | | | |
Total Capmark Bank Loans | | $ | 8,044.8 | | 100.0 | % | $ | 1,244.8 | | $ | 9,289.6 | | $ | 1,541.0 | |
| | | | | | | | | | | |
Non-Capmark Bank Loans | | | | | | | | | | | |
Agency | | $ | 8.8 | | 0.2 | % | $ | — | | $ | 8.8 | | $ | — | |
Construction | | 353.4 | | 8.3 | | 191.6 | | 545.0 | | 189.5 | |
Property Type(4) | | | | | | | | | | | |
Office | | 747.4 | | 17.6 | | 71.7 | | 819.1 | | 120.2 | |
Multifamily | | 848.5 | | 20.0 | | 217.9 | | 1,066.4 | | 235.7 | |
Retail | | 605.1 | | 14.3 | | 14.9 | | 620.0 | | 25.4 | |
All Other | | 1,678.9 | | 39.6 | | 239.2 | | 1,918.1 | | 454.5 | |
| | | | | | | | | | | |
Total Non-Capmark Bank Loans | | $ | 4,242.1 | | 100.0 | % | $ | 735.3 | | $ | 4,977.4 | | $ | 1,025.3 | |
| | | | | | | | | | | |
Total Capmark Loans | | | | | | | | | | | |
Agency | | $ | 178.2 | | 1.5 | % | $ | 16.3 | | $ | 194.5 | | $ | 56.3 | |
Construction | | 1,484.2 | | 12.1 | | 817.8 | | 2,302.0 | | 1,015.6 | |
Property Type(4) | | | | | | | | | | | |
Office | | 2,427.1 | | 19.7 | | 388.9 | | 2,816.0 | | 472.8 | |
Multifamily | | 2,006.1 | | 16.3 | | 305.5 | | 2,311.6 | | 340.0 | |
Retail | | 1,075.7 | | 8.8 | | 93.3 | | 1,169.0 | | 104.3 | |
All Other | | 5,115.6 | | 41.6 | | 358.3 | | 5,473.9 | | 577.3 | |
| | | | | | | | | | | |
Total Capmark Loans | | $ | 12,286.9 | | 100.0 | % | $ | 1,980.1 | | $ | 14,267.0 | | $ | 2,566.3 | |
Dollars in Millions
Loan Portfolio (1) | | Total Unfunded
Commitment | |
| | | |
December 31, 2008 | | $ | 1,980.1 | |
| | | |
September 30, 2008 | | $ | 2,566.3 | |
| | | |
June 30, 2008 | | $ | 2,948.8 | |
| | | |
March 31, 2008 | | $ | 3,599.9 | |
| | | |
December 31, 2007 | | $ | 3,964.2 | |
(1) Capmark’s loan portfolio consists of all loans (held for investment before allowance for loan losses and held for sale net of mark to market adjustments) reflected on Capmark’s consolidated balance sheet.
(2) Capmark Bank loans consist only of loans owned by Capmark Bank, our Utah industrial bank subsidiary.
(3) Unpaid principal balance less the amount of any market valuation adjustments and other discounts to carrying value.
(4) Property types for Agency and Construction loans are not presented in this table. For more information on property type diversification see page 3.
6
Weighted Average Loan To Value - Capmark’s Global Loan Portfolio
| | December 31, | | March 31, | | June 30, | | Sept. 30, | | Dec. 31, | |
Loan To Value (LTV) statistics(1) | | 2006 | | 2007 | | 2008 | | 2008 | | 2008 | | 2008 | |
| | | | | | | | | | | | | |
WA Loan to Value (%) - Capmark Non-Bank Loan Portfolio | | 70.9 | % | 73.9 | % | 72.3 | % | 68.6 | % | 70.6 | % | 77.4 | % |
WA Loan to Value (%) - Capmark Bank Loan Portfolio | | 65.5 | % | 66.2 | % | 65.2 | % | 66.2 | % | 66.6 | % | 67.6 | % |
WA Loan to Value (%) - All Loans | | 69.2 | % | 70.4 | % | 68.9 | % | 67.2 | % | 68.1 | % | 70.4 | % |
(1) LTV is determined for the performing loan portfolio, where the collateral values that are 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, | | March 31, | | June 30, | | Sept. 30, | | Dec. 31, | |
Non-Performing Assets (1) | | 2005 | | 2006 | | 2007 | | 2008 | | 2008 | | 2008 | | 2008 | |
| | | | | | | | | | | | | | | |
Number of Loans | | 20 | | 21 | | 22 | | 22 | | 22 | | 35 | | 62 | |
| | | | | | | | | | | | | | | |
Gross unpaid principal balance | | $ | 179.6 | | $ | 214.5 | | $ | 259.3 | | $ | 288.8 | | $ | 346.8 | | $ | 455.9 | | $ | 933.3 | |
| | | | | | | | | | | | | | | |
Basis adjustments before allowance for loan losses (2) | | (44.9 | ) | (52.6 | ) | (50.9 | ) | (74.1 | ) | (104.9 | ) | (112.6 | ) | (167.9 | ) |
| | | | | | | | | | | | | | | |
Specifically assigned allowance for loan losses | | (20.9 | ) | (55.5 | ) | (6.9 | ) | (13.4 | ) | (16.0 | ) | (33.4 | ) | (50.1 | ) |
| | | | | | | | | | | | | | | |
Carrying value | | $ | 113.8 | | $ | 106.4 | | $ | 201.5 | | $ | 201.3 | | $ | 225.9 | | $ | 309.9 | | $ | 715.3 | |
| | | | | | | | | | | | | | | | | | | | | | |
Ratio of non-performing assets to total loans and foreclosed real estate (3) | | 0.9 | % | 0.9 | % | 1.4 | % | 1.3 | % | 1.7 | % | 2.4 | % | 5.8 | % |
| | | | | | | | | | | | | | | |
Carrying value as a percentage of total assets | | 0.6 | % | 0.5 | % | 0.9 | % | 0.9 | % | 1.1 | % | 1.4 | % | 3.5 | % |
Capmark’s historic loss severity on resolved non-performing loans from 2003 through December 31, 2008 was 34.09%.
(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. |
8
Loan Maturity - Capmark’s Global Loan Portfolio(1)
Loan Maturity by Fiscal Quarter
| | Maturing Loans | | Maturing Loans with Built-in
Extension Options (2) | | % of Total with
Extension Options (3) | |
Dollars in Millions | | Bank | | Non Bank | | Bank | | Non Bank | | Bank | | Non Bank | |
| | | | | | | | | | | | | |
Q1 2009 | | $ | 693.7 | | $ | 540.5 | | $ | 301.4 | | $ | 143.1 | | 43.5 | % | 26.5 | % |
Q2 2009 | | 587.6 | | 134.3 | | 469.9 | | 62.8 | | 80.0 | % | 46.8 | % |
Q3 2009 | | 347.5 | | 385.9 | | 172.8 | | 138.9 | | 49.7 | % | 36.0 | % |
Q4 2009 | | 432.4 | | 395.2 | | 342.8 | | 194.6 | | 79.3 | % | 49.2 | % |
Total | | $ | 2,061.2 | | $ | 1,455.9 | | $ | 1,286.9 | | $ | 539.4 | | 62.4 | % | 37.0 | % |
(1) | | Capmark’s global loan portfolio consists of all loans (held for investment before allowance for loan losses and held for sale net of mark to market adjustments) reflected on Capmark’s consolidated balance sheet. |
(2) | | Represents current loan maturity date. Certain of these loans contain built-in extension options and therefore may have a final maturity date that is later than what is reflected in the table and extends beyond 2009. |
(3) | | Built-in extension options contain performance conditions that may not be achieved at current loan maturity date and therefore such extensions may not be available to the borrower. |
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Loan Origination - Capmark’s Global Loan Portfolio
The following table presents information concerning the volume of loans originated by Capmark by type of lending during the periods indicated.
Loan Origination Statistics
| | Year Ended December 31, | |
| | 2005 | | 2006 | | 2007 | | 2008 | |
Dollars in Millions
Lending Type | | Loan
Commitment
Amount | | % | | 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 | % | $ | 1,768.8 | | 16.9 | % |
Capmark Non-Bank(1) | | 10,449.0 | | 35.1 | | 11,904.8 | | 39.9 | | 7,551.3 | | 25.8 | | 381.6 | | 3.6 | |
GSE and Agency Lending | | 3,347.3 | | 11.2 | | 3,316.5 | | 11.1 | | 5,535.2 | | 18.9 | | 5,751.0 | | 54.9 | |
Third-Party | | 10,094.3 | | 33.9 | | 9,681.2 | | 32.4 | | 7,208.2 | | 24.7 | | 2,573.0 | | 24.6 | |
| | | | | | | | | | | | | | | | | |
Total | | $ | 29,804.6 | | 100.0 | % | $ | 29,865.2 | | 100.0 | % | $ | 29,222.9 | | 100.0 | % | $ | 10,474.4 | | 100.0 | % |
(1) | Capmark Non-bank includes all Capmark loan originations other than loans categorized as GSE and Agency Lending and originations by Capmark Bank, our Utah industrial bank subsidiary. |
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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 April 23, 2009
Long-Term Senior Unsecured Debt Ratings
| | Rating | | Outlook | |
| | | | | |
Standard & Poor’s | | B+ | | Negative | |
| | | | | |
Moody’s | | B2 | | Negative | |
| | | | | |
Fitch Ratings | | B- | | Negative | |
Short-Term Senior Unsecured Debt Ratings
| | Rating | | Outlook | |
| | | | | |
Standard & Poor’s (1) | | — | | — | |
| | | | | |
Moody’s (1) | | — | | — | |
| | | | | |
Fitch Ratings | | B | | Negative | |
(1) Moody’s and Standard & Poor’s do not rate our short term senior unsecured debt
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Capmark’s Servicer Ratings
Ratings as of April 23, 2009
| | Rating | | Outlook | |
| | | | | |
U.S. primary servicing | | | | | |
| | | | | |
(1) Standard & Poor’s | | Strong | | Negative | |
| | | | | |
(2) Fitch Ratings | | CPS2- | | Negative | |
| | | | | |
(3) DBRS | | Superior | | | |
| | | | | |
U.S. master servicing | | | | | |
| | | | | |
(1) Standard & Poor’s | | Strong | | Negative | |
| | | | | |
(2) Fitch Ratings | | CMS3- | | Negative | |
| | | | | |
(3) DBRS | | Superior | | | |
| | | | | |
U.S. special servicing | | | | | |
| | | | | |
(1) Standard & Poor’s | | Strong | | Negative | |
| | | | | |
(2) Fitch Ratings | | CSS2- | | Negative | |
| | | | | |
(3) DBRS | | Not Rated | | | |
| | | | | |
UK / Ireland primary/master servicing | | | | | |
| | | | | |
(1) Standard & Poor’s | | Strong | | Negative | |
| | | | | |
(2) Fitch Ratings | | CPS2+ | | Negative | |
| | | | | |
(3) DBRS | | Superior | | | |
| | | | | |
UK / Ireland special servicing | | | | | |
| | | | | |
(1) Standard & Poor’s | | Strong | | Negative | |
| | | | | |
(2) Fitch Ratings | | CSS2 | | Negative | |
| | | | | |
(3) DBRS | | Not Rated | | | |
(1) | “Strong” is the highest of five ratings given by S&P to servicing companies. |
(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 by DBRS to servicing companies. |
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Capmark’s Global Servicing Portfolio
Dollars in Millions
| | December 31, | |
| | 2005 | | 2006 | | 2007 | | 2008 | |
Servicing Portfolio | | # of Loans | | UPB | | # of Loans | | UPB | | # of Loans | | UPB | | # of Loans | | UPB | |
Master / Primary / Special | | 15,515 | | $ | 62,318 | | 13,881 | | $ | 57,888 | | 12,797 | | $ | 75,779 | | 10,643 | | $ | 69,908 | |
Master / Primary | | 38,376 | | 168,342 | | 38,716 | | 215,400 | | 37,381 | | 261,175 | | 35,286 | | $ | 266,832 | |
Special | | 6,103 | | 45,310 | | 5,529 | | 37,620 | | 4,994 | | 34,776 | | 3,800 | | $ | 25,385 | |
| | | | | | | | | | | | | | | | | |
Total | | 59,994 | | $ | 275,970 | | 58,126 | | $ | 310,908 | | 55,172 | | $ | 371,730 | | 49,729 | | $ | 362,125 | |
| | | | | | | | | | | | | | | | | |
Originated | | 8,987 | | $ | 68,338 | | 9,551 | | $ | 80,290 | | 9,514 | | $ | 91,927 | | 9,432 | | $ | 93,261 | |
Acquired | | 29,307 | | 166,702 | | 28,540 | | 187,536 | | 27,100 | | 234,163 | | 22,983 | | $ | 216,302 | |
Contracted | | 21,700 | | 40,930 | | 20,035 | | 43,082 | | 18,558 | | 45,640 | | 17,314 | | $ | 52,562 | |
| | | | | | | | | | | | | | | | | |
Total | | 59,994 | | $ | 275,970 | | 58,126 | | $ | 310,908 | | 55,172 | | $ | 371,730 | | 49,729 | | $ | 362,125 | |
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Capmark Investments’ Assets Under Management
| | December 31, | | December 31, | |
Dollars in Millions (1) | | 2005 | | 2006 | | 2007 | | 2008 | |
| | | | | | | | | |
Proprietary Investments: | | | | | | | | | |
Real estate equity | | $ | 398.8 | | $ | 232.1 | | $ | 191.8 | | $ | 170.2 | |
CMBS: below investment grade | | 192.0 | | 224.7 | | 76.5 | | 32.4 | |
CMBS: investment grade | | 22.4 | | 19.3 | | 8.8 | | 20.8 | |
ABS | | — | | 34.4 | | 2.6 | | — | |
Whole loans | | 122.0 | | 48.2 | | 47.5 | | 56.2 | |
Mezzanine debt | | — | | — | | 64.4 | | 67.7 | |
Commercial discount loans | | — | | — | | 5.5 | | 3.6 | |
CDOs | | 124.6 | | 65.9 | | 66.9 | | 32.0 | |
Funds invested in real estate equity | | 191.3 | | 286.1 | | 422.2 | | 326.7 | |
Funds invested in real estate debt instruments | | 39.9 | | 78.9 | | 100.1 | | 62.0 | |
| | | | | | | | | |
Subtotal Proprietary Investments | | 1,091.0 | | 989.6 | | 986.3 | | 771.6 | |
| | | | | | | | | |
Third Party Investments | | 8,624.1 | | 8,799.3 | | 9,328.2 | | 8,186.3 | |
| | | | | | | | | |
Total Assets Under Management | | $ | 9,715.1 | | $ | 9,788.9 | | $ | 10,314.5 | | $ | 8,957.9 | |
| | | | | | | | | |
Number of Clients | | 41 | | 33 | | 35 | | 30 | |
(1) | Amounts are subject to change based on the receipt of financial information for the underlying investments subsequent to the completion of the financial reports for the applicable period. |
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