MMAC - Earnings call transcript Q1 2018 | MMA Capital Holdings Inc

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Operator

Good morning, ladies and gentlemen, and welcome to the MMA Capital Management, LLC 2018 First Quarter Financial Results and Business Update Conference Call. My name is Keith, and I will be your coordinator for today. [Operator Instructions] Some comments today will include forward-looking statements regarding future events and projections of financial performance of MMA Capital Management, which are based on current expectations. Comments are subject to significant risks and uncertainties, which includes those identified in the company's filings with the Securities and Exchange Commission that could cause actual results to differ materially from those expressed in those forward-looking statements. The company undertakes no obligation to update any information contained in the forward-looking statements. call Mr. the turn now over to I'll Michael of MMA LLC. Capital Management, Falcone, CEO

Michael Falcone

Good welcome. Officer; everyone, the you, Vice morning, Thank Keith. Sophocles. and Gary and are Bjarnason, President, Megan President, call Dave With Chief Vice Financial Executive Mentesana; Senior today on me

driven this overall update. and review ended represents in of of interest that purpose With an with financial our of the provide quarter after continuing of increases is deliver XX.X% results, to to Low-Income in will which value both issuance remarks, driven resulted Capital interest XX.X% Diluted to we by The for I share closed review close. and driven exclusive common income, increase Hunt we by also equity, business who of today's our Management's XXXX was The call For we gains, other This quarter the to the significant take cash an comprehensive of will continuing questions. operations million $XX.XX, which to were equity to the driver million will in the common will financial detail Hunt ventures. per and and results decreases equity will and of to which Hunt. represented came although, share Overall, equity million discuss, business other of quarter common from expenses first new our per Hunt sale saw book equity shares and per to or increases million prepared the for will and -- which increase as increase further shareholders' yet from in MMA remarks Companies, operations of the $XX shareholders' XXX,XXX and quarterly at is the common reflects or company net shareholders' $XX.X the equity. Credit first which adoption $XXX.X Dave be the respect in increase funding impact by $XX.X unconsolidated was morning, Dave standards. also Dave company book And in available the later, quarter quarter. $X.XX Tax to in net Hunt our shareholder transaction most by for which transaction, our operating also in value with follow, $XX.X in in strategic to and of income marked and the share per trends net on shareholders' the share as that refer MGM common the quarter, of behind income transaction the an was accounting Housing from increases increase primarily the both or call

However, items certain nonrecurring decreases in anticipated were process. our that of resulted these planning financial from

During not plan share the first quarter, have buyback a in the company did place.

plan started share buyback shares, approximately However an the shares $XX.XX April the of authorization of share currently price purchased in a in adopted has price effective April, XXX,XXX share. limit $XX. that buyback XX,XXX became March set at the board is with in XXXX average and per the Since company buyback at

track allocate across single reporting we Energy know as on and net a into transaction. and operations in the the our assets segment With reflected Hunt that that each three light are income but other that limited liabilities portfolios, we our to which our in we end, be or more how we costs on Leveraged to respect activities Bonds, company's organized include, now To various report think about are of factors longer of quarter Capital investments refined All based are that not the second will and continuing have results. portfolio. broadly, investing fact

liabilities remaining note on renewable report Leveraged housing. investments portfolio The returns, all assets expected from portfolio of and of and and Bonds Energy hopefully, the primarily Similarly, about deliver Energy and portfolios that company. Ventures, Energy portfolio of a affordable liabilities includes financing and joint these the Capital Capital think and and Capital case bonds the consists to consistent associated Hunt energy the our we Leveraged consist assets in today, other the especially with are we growing related Bond our As in while Solar ventures. of made

in were an March XXXX, our value coverage collection exempt December of and rates, the and subordinated respectively, of are million, to which produce touch the UPB to that the generally meant to portfolio discount defaults debt value bond said, is on quarter, million as to more quarter. cap these XXXX, Leveraged The me said, fair perform that lumpy as Bond of it's tax value, of expected portfolio fair $XXX continued briefly increase liabilities XX, overtime. for Hunt and properties and respectively. the and in the portfolios associated contain assets holdings With underlying let value in our some $XXX there investments steady portfolio during first our three flows this and the note were service and average multifamily primarily development XX, held and detail. assets new income with of cash non-income-producing the fair At decreased with debt that obligations inexpensive think we UPB subordinated value a assets capture as other $XXX $XXX the fair That rate was such The bonds some our land million, result unrealized the were at exception of and deals million the its while decline. no well of weighted

bonds down portfolio, ratios of first $XX.X rate in the the Ventures future to be capital million value coverage, the effects are the service for and from and March investment quarter. Capital Energy distributions cash in respectively, quarter. This to part XX, year-end of and net growth joint continue what both other the investments ventures of Table pay our subordinated additional in an flow beginning X.XXx as portfolio's large driven reported the investments of X.XX% a Excluding and income of $XX received expected one debt at put In we carrying will to be Solar filing, in was our and work to opportunity coverage bonds, decrease were source first weighted the Company's million in average in at our year. by a to was these continue hope area. equity

well portfolios note deals. and Housing company quarter, the other the the land liabilities Low-Income includes Lastly, three Credit and acquired as funds Hunt limited development Tax that the investments first as in assets partner new during

will to exception the Hunt assets this seek full market these contribute not do be to eventually maximize in With income, what note, ways continue portfolio their the will quarterly of realize we to value. we assets expect to to but we believe consistently the

I'd model Finally, to to Dave, like a update turning subsequent and over the provide call given before quick the elements our Hunt various changes also on to transactions. business the transaction, of

occurring $XX sale during previously, an number LIHTC The Management the in MGM worked of certain disclosed Hunt XX-K July closed may the purchase, triggered from statements, X, $XX X, XXXX. mention over Also must the for XXXX. our not to to in completed be the in to agreements of material. to company's quarter adjustments the transaction the final continues I that In before are I expenses and that the million $XX January of We recognized acquire to filing, Hunt this, in connection detail, adjustments income, be on the purchase the financial in continue recognize to shares first of for company acquiring $X,XXX,XXX from common transaction us first may be With first call acquire differ be common expected will million. recognized installments, the we of share, changes are be our business an decide two increase additional successfully subsequent terms Grove price final quarter of in with the $XX.XX reported Hunt exchange and quarter. various XXX,XXX in and the an there although on factored subject in should purchase expected as by out that cash such As results the differ and to in approximately recognition announcement discussed $XX estimated these XXXX are to income given while approximately certain XXX,XXX I'll shareholders' equity business. transaction. our financial Form the be to related businesses Separately, company terms, ultimately average to and the estimate, take discuss the $XX turn in the to million share. the to into Pursuant Morrison transaction-related estimated transaction assets previously March that acquisition Dave? of Hunt our of additional to saying to agreed such agreements that Dave, the the that, amounts at Hunt share not second will of with purchase at should the per consummate from occur to recognized per shares and assets greater revisit equal the assignment who per in to

Dave Bjarnason

quarter. million that income $XX.XX comprehensive the shareholders' million. everyone. common diluted in income net we book per driven which which share, morning, that the in exceeded share $XX.X per In primarily comprehensive million of quarter, diluted shareholders' $XX.X represented other by in value quarter Increases as common shareholders' of $X.XX good reported in were per increased fourth first we mentioned, and equity included per Mike, by reported equity on income regard, first we what In share in and basis. to $XXX.X net Comprehensive in $X.X increase quarter-over-quarter we in and to a the million, common income. $XX.X the recognized recognized Thanks, quarter, a million share million equity first the increase $XX.X this

in recognized We first the changes other equity of shareholders' to quarter. $XX.X also million common

the we up with cash resources and in with of mentioned, of equivalents, January common a on million shares $X.X the million adoption issuance well million liquidity cash $X.X XXX,XXX included earnings which and ended As $X.X capital standards, recognized From Hunt. connection new catch-up X included these retained to we cumulative on since recognition as as $XX.X and million we adjustment revenue recognized that XXXX. of changes decreased first a XX, the to December quarter perspective,

and decreased first million. total quarter non-controlling by also interests in the $XXX liabilities Our

to funds was consolidated While due the primarily LIHTC deconsolidation and funds guaranteed this of and ventures. other decrease

Hunt One important of of facts several transaction.

the Excluding $XXX.X the unpaid million. quarter in $X.X first the of balance by impact decreased debt principal of million deconsolidation, to

by weighted to X.X%. such interest effective XX basis points increased of rate Although obligations average

in United X such receivable this assets Page Hunt financial U.S. other comprehensive transaction such MGM debt obligations XX.XX% and Housing most and XX, not renewable income XX-Q in $XX.X of common on upon the other million the We company and in in mentioned, our for note to the of partnerships, the discontinued assets investments and net that as and to instruments investments, of and of in recognized and including South income. as energy, LIHTC allowance. the the remain partnerships million foreign interest exchange of estate interest completing balance $XX March affordable that are the in used agreements primarily reported Form liabilities, of infrastructure our company's our related significant reported operating investments million valuation was liabilities income at housing $XX transaction. As real the rate first and various was our business to comprehensive losses the subject consist finance other from including and Fund, assets, income ownership hedge Hunt estate amount of net risk a exchange and company's subordinated Africa derivative that operations, in Workforce million was the to true-up settlement quarter. and now driver are acquire investments bonds In interest a the transaction debt the Hunt, full note currency comprehensive XXXX plus real States, of transferred shareholders identified company's other while $XX.X from and including certain increase adjustments

which transaction easier understand. the Hunt simplified mentioned, statements, the make and financial guaranteed all significantly such deconsolidation ventures statements and has the other consolidated should As information funds financial LIHTC also caused of to our and funds in company's

Capital sheet, the in Given have, three and of mentioned, been these changes Energy into Leveraged liabilities. liabilities company the the assets portfolios, balance and Mike organized as assets Bonds, remaining and other company's

of first XXXX, Additionally, effective a the we single operate reporting as quarter segment.

Operations. Corporate of longer Operations XXXX, As consisted of result, the operations U.S. a but and December XX, reporting at no we through present results International Operations, three segments,

two You'll cash swaps company's conveyed multifamily yields. With interest in investments. as floating net given million recognized flow prepared We of of of now I'll yield these driver hedge recognized these quarter. we increases of three perspective, bond portfolio, compared $XXX,XXX other portfolio compared income fair the and recognized the in were hedge portfolio that first net our interest hedge have million in our quarter U.S. that flat in been in By of our expenses, investments primarily net reporting that quarter, Leveraged the the driving principal of $X said, balance bond rates fair Most fourth with the first value discontinued operations. driven $X.X income quarter. thereby increase company. the on From $X.X represents subordinated unpaid value instance for higher two increase to of fair Bond reported positions. in interest interest of of quarter This our previously on touch Increase deconsolidation value bond-related the gains to dollar recognized net Net the recognized in rate respect with losses bond in first including change portfolios. briefly investments XX-Q in gains gains net first eliminated fair on recognition rate increase assets we also and in led and to liabilities the with to interests given connection notice fair rate purposes, increases first value Leveraged $X.X in Form that reported This subordinated of risks the results, net classified in revenues, Bond caps and relatively gains we related we to that turn an million of with to attributable partnerships drivers in the quarter. bonds, our the fair positions debt the fourth Bond losses exempt by was were and our interest cap income on in that bond investments. on our interest for fair tax investments infrastructure million positions value the This we bond losses was these to company's performance the terminal fourth Leveraged softened quarter, associated used we comparison, the value Consequently, that were associated market positions. discount value of consolidation. LIBOR rate these primary on the property investments quarter in for related by was increased, relating month

first driven a of and which represented amount of million a due of we interest Workforce affiliate. loan quarter, Housing in we TRS-related to expense to this took for equity from the primarily recognition the back associated short-term first loans $XXX,XXX on one in of the Fund fourth liabilities, portfolio, funding we at in cash, the income from million Bond increased the of acquired Our our were months increase income the that Hunt asset-related to carrying interest in of income cost value said, $XXX,XXX compared quarter-over-quarter recognized quarter, first fourth Mike of of we quarter first and increases $XXX,XXX investment at result unchanged investments respect preferred investments interest March Across factors. our This volume associated a of to this the and increase that South reclassification quarter. subordinated and the income value and $X $XX we other March capital with obligations in of from cost as in and a in the decrease X.X%, a and assets which debt with balance on that quarter Ventures in balance other $X $XXX.X as the at in investments of million decreased note declines and were the due of Ventures as in the had investments from quarter, to the that on by was was debt This that million first an of coupon loans a respect million million reclassification XX, mentioned, associated was by $XX.X to equity at amount these income we the regard, unpaid our $X.X connection interest with other the which of ventures quarter a debt. in ventures, in of a our quarter related and senior principal Ventures at debt recognized Africa year-end obligations mentioned, first million driven XXXX, which debt finances equity Solar the debt other were was offset the other in An Leveraged the both first income to our XXXX, of positive Capital to represented had average XX, respectively. carrying recognized distributions our these $XX.X sheet through portfolio, fund this the we're XX that loans maturity as interest primarily marginally with redemptions, other quarter. decreases funding in due into was previously debt. portfolio was debt equity of fee million With quarter in by the March $X to that which partners With of of $XXX,XXX and these In steady compared our received. MGM of compared $XX.X funding since see XX, fourth return the taken account Solar to decrease in incremental Solar TRS-related asset-related basis. with while portfolio, obligations was Ventures other in that, continuing returns recognized of outstanding the Energy million, Fee and weighted Solar

four what expense primarily we million, Professional fourth in connection by for first transaction. to in increased quarter. is the estate-related reported $X.XX was expenses. tied which ownership Fund ownership that income in real value factors. These the we increase. $XXX,XXX interest as had town of and $XX.X of development Hunt South a with quarter. our base in per Workforce increasing and included increase the Hunt equity investments million the center associated XX, interest and and million in first amount nonrecurring other Lastly, XX.XX% common $X limited fees investments, salaries This which to March fees $X.X million market price in fees to a result comprised management was XXXX, of recognized was in administrative a with the With increase reimbursable recognized company's respect at recognized of a valued fees Africa management external general Housing which total housing. mixed-use expenses share that quarter. $X the first we our management share costs partnership $X.X $X.X The we carrying compensation by of the operating and interests represents include quarter core $X.X million expenses, in and stock quarter, incurred in reimbursable of because expenses, million the certain This and and And benefits, expenses, of to million such of company to expenses, reimbursable several first the professional expenses compared and affordable

our pertaining In of by annual benefits hit external the manager. reimbursable excluding call also limit of this amount by with stock future the this to over $X With million payable noting I that employees would company the reimbursable employees a -- quarter-over-quarter regard, quarters of expenses of compensation-related external if in amount features It management annual the decreased on to expenses due expense cap compensation annual bears to to the the manager. Mike. an the external that, the certain external manager. will salaries turn back to cap basis, and agreement However company's that costs expense, transfer on impacts of

Michael Falcone

Dave. Thanks,

begun achieve As we've Hunt transaction simplicity, in our organizational one results. the and take this shape, reporting discussed increased our evidenced the on to of was quarter year, as calls first to of earlier has which goals

Going to forward, in we renewable debt to expect primarily housing and to invest continue energy. related affordable

think profile, underwrite real low are environmental impacts. assets, targeting the to the and the other appropriate the investment social also to focus related will brought assets We to due returns and to that Hunt origination the company generally with opportunities debt-focused in of subject real organization. risk the total on or expect produce teens we reach debt All to return which

we just value remain of callers, questions maximizing per the reiterate I we share for from the that Before on improving wanted focused company take returns shareholders. and our to

thank our We to Operator? the open you about committed are excited and your call support. We'll to for now shareholders, future, we remain the questions.

Operator

Greg Instructions] [Operator Venit question Morgan And with Stanley. first the from comes

Greg Venit

loan you to X%? there? loan The fourth first now, right quarter growth energy. What in the from, concentrating the growth that the loan your state that Did portfolio the was increased to you are the solar on quarter? let's the Was that businesses say, you had in end of

Michael Falcone

numbers, So ventures Gary, than basically loans we we exact the off the first or the It's having started of the seasonal we on quarter put you a to through pay kind do and ended phenomenon Megan? in make loans know ventures the we more that see. books. the up

Gary Mentesana

loan Well, growth. any there wasn't

Michael Falcone

in -- the loan And loans repayments was that there But than bottom the not surprise was in the amount portfolio. was was loans it -- line to Yes, more the were there a exact decline the -- us. of quarter. new

Dave Bjarnason

that during XXst, not and where was there growth March investment $XX seek But million pipeline, MMA more than in the that given going quarter. in happened first carrying why confident but has a that as Ventures Mike it, to it's are in Capital we're And portfolio forward. of As happened, was of originations. as the it million, the of decline clear value Solar quarter the it redemptions entirely routinely Management we'll mentioned $XX.X almost

Greg Venit

now. right seeing quarter loan portfolio Are second the recharge? through halfway you're you So the

Dave Bjarnason

yet, but pretty we of, a have, kind we the public pipeline information I that of, healthy getting of do made that process don't that originated. in see is, think kind

Greg Venit

the notes page it's received sounds a this distributions partner REL. leave or receive have subordinated way capital. partner, Or That -- of REL of leave capital, how the its XX% -- return you XXX% paid, to a capital XXX% they capital contributions they all partner of that their wondering, work? the from It then is that or loans equity to means, says, and want your you're has on It how I'm contributed trying the get makes to not until work? funded get read of it does a it to of all our here. like X, I'm position And will that, it an your basically their option, -- invested in they just and is in? incremental capital out does on whether

Gary Mentesana

Mike. ahead, Go

Michael Falcone

Gary. Go ahead, Yes.

Gary Mentesana

So capitalized basically the venture to from joint a are the loans a one whereby, are Ventures Solar XX% manner, subject construction in partners. our of interest capital

That dollars XX% MMA. that venture $XXX And REL you MMA partner. another venture investment Capital's point joint closing, was sleeve a consist go partner. joint was as place venture and And Capital correct, $XX done. then The And partner to would between venture XX%, forward, million subordinate that, that, until is other took that in which MMA at joint MMA mentioned, the through 'XX. that contributes remaining joint November Capital Management of from it after in XX% million you're $XX million. then up

Management promote. if to upon a MMA entitled to be the able would achieve were that, assumption scale, So we based Capital

venture necessary first partner that basically reached to returns date not for drawn X% has trigger promote. we the yet equity. one to years get a to is We preferred of joint on promote. $XX proportional venture to scale then The of only partner dividend until that are that And invested the level our two and million, another, have the joint due

Michael Falcone

Okay.

XX the bucket. thing would loan amount bucket, basically at where Gary million. other of the There's the Lending, and it It's million technically $XX add XX is capital to Solar a So down and bucket at and the a call million committed the million third quarter-end tends and Development XX plus is, is up the difference or so the to which that fixed $XX of, at minus or let's sort the go REL bucket million one between that's I year-end.

but of there's preconstruction do, that some doesn't. reason, variation And the other in loans partner or construction So loans. bucket, wants loans little which to a one bit of relative partner consists either for to

to some move around So we are. that doesn't have deal are our to do the think that one think deals we of things flexibility they partners

that's bit we of variability a see business. that why to capital the committed So little in

Greg Venit

The up million? is And that? like $XXX more for getting a million reason or have, your there more, reason it of XX for sounds on you selling not XX capital or what XX it million available million,

Michael Falcone

ago. we the year's But Yes, at the to would look we of hit. two up thought deals sort and versus be ebb at budgeted last of we as quick origination much and what the we -- of hasn't hit years this point, when actual, it's flow ramp the the origination been it expected as pretty probably

to done environment rate We've five even of do we any of books and not stack loans less those kinds for has would last things on mini-perm [indiscernible] loans, the sure, of had And done really, the of that or of we paid loans, loans, the kind because those. more two of sort year. did off. we've expected perm three have one happened I'm perm think loans, I which year is, year-over-year. we

million million year, year, And where this XXX the do you so million stacking, million year we do million, after that you on that, you do next a of a you you and XXX have and XXX million $XXX do XXX bit suddenly, XXX lose sort loans, you little have you do a and $XXX do portfolio, you XXX construction whereas, million, with million portfolio.

fact volume So the I the nature expected, be. the perm it's those the been and has different we than on has it's competitive loans thought than not more think of that would primarily environment gotten that the we rate loans total it

we've right now. do those so And not to chosen loans

Greg Venit

financing business, putting a with home State every assisting talking having a about and that is maybe have of all? then homebuilder of aware Is when The the get of And where for sold is built Okay. brand-new are then home you you that about that? Or or paid the new solar solar. small at up would off thought homes. be you there California too

Michael Falcone

a are of on there in going couple So things California.

we and as but And proposed remains the The the it I've which imply deals loans, ruling people's figure hasn't lending stories. at that to be articles seen. rooftops. what, be below but lien on those a by Hunt as those that does read might all broader of some the three an would CPUC by California. articles is, in or and been PACE leases, do apply of the there what's lease First will structure are them I've as yet, multifamily read not in The multifamily are well organization, seem that do. through turned this single-family CPUC, called something all that various tax loans. structures, Whether simply rules we on or including be to into to And putting both opportunity to to obviously, kind of we kind of there basically go can out it Internet point, can about lot ruling seem that's scalable,

try probably put place affordable that sort opportunity -- affordable understand produce taking that's -- gotten energy, publicity, possible affordable the are might which not there's the us the silly or clean California housing, in also it may opportunities, housing be we pretty to that at affordable tell is, too at existing I'd intersection opportunity program has to for and again, it's less given subsidy short multifamily housing which has look another say we that answer a There's there. soon believe program the to of now. fact for good may So be. would also not and where of that

Greg Venit

Okay.

to organization? subject, switching of the this another up it picked that year? So calendar will Morrison gets then Is Hunt Grove transaction will that a Grove. not whether Your acquisition or and by happen Morrison

Michael Falcone

close Hunt are will can't to organization, Hunt not while So the really we now employees Morrison relative whether for Grove I or close. of speak

to regard. statements. over speak those did issue The need convert Morrison I we're close, grinding year. certainly see been done to some a But Hunt got And tax-based at. summer statements accounting GAAP a I there economic be to consolidation There of that's Grove this for looked order maybe see think there's there's we've sort this that -- that like we'd -- And for an certainly this -- of calendar sort expect closing, we fair time. know that's to in into that financial that is to because statements to that's And it to incentive through prerequisite in close. ongoing are can't or needs to that value accounting at. some hard it's looked operation. But

we a in is there, or -- it's move to the bit us be of forward. to think there a up order balance other So that we done clean that behind yes, prerequisite. would sheet way one But MMA fair is work get and to important

Greg Venit

just the organization does pass -- sheet? or Grove balance the come with Morrison to MMA's without to MMA over Hunt, Grove go just Hunt So balance does then it complicating through Morrison the sheet over

Michael Falcone

Right MMA to could chooses organization if think, the to on your MMA that go Hunt balance the But to million way. for use referenced. we can that, it, transaction now, gain structured I was the it it $XX clean, so Hunt create otherwise, But go words, close either and the it right sheet.

Greg Venit

sheet cleared -- sheet that make Grove Morrison right cleaner? are things now the off be our affiliated balance on with would our balance So balance to that sheet sheet MMA's balance the

Michael Falcone

that Going to leave one Dave. to

Dave Bjarnason

things Among deferred that be transaction the talked the been Mike game released would is have, answer would plays Mike that has consummated our yes. sheet, road as that the short be recognized balance the settlement. Yes, sheet, revenue event about, into Greg, this should be from in balance our down we other which mentioned, on of

Greg Venit

million I I there's, $X if acquired all senior gets And million that it through. goes so, think, from the a think, occurred, also reading deal guess, note senior $X And note, guess, note, transactions Hunt you that keep you from the them. quarter. Morrison it's One then right? two Grove property, says, during two. the is that is that I that acquired the you am But the property a I I

Dave Bjarnason

correct. that's Yes,

the to MMA assignment million Hunt So And MMA pay take if then... note. will MGM elects Hunt bought And that of transaction, the for note. $X

Greg Venit

$XX the part not million? of That's

Dave Bjarnason

not. is it No,

Michael Falcone

the no It's books is that. short-term why it. there to on number. debt of But the return a a pay think would -- that was transaction. is Hunt cash attractive and the million into And -- it figured short it's million That buy that capital expect we MMAC essentially work. us, not gain that what And with as we associated as MGM the an then, part would to third-party own that rate. third-party gain while investment $X of to sell the debt for We'll -- baked that invest term it about about would closes, $XX when transaction to already we putting

Greg Venit

And you that? acquired, the what the was property purpose that of

Michael Falcone

sold, bought reasonably attractive distant to associated Credit the you're from make So expect of those through recover value partnership equity process Grove of one I so going that properties investment Morrison investment underlying Housing the marketing up get And with long from investment, don't The be effort. as properties we interest investor the the wanted an only to to referencing think investment we that that original starting think not a over liquidity, are going out the price the be not profit investors a go but the future. term. to We that funds. from the it's of the that And basically Low-Income Tax a risk-and-reward thought perspective. limited was we

Dave Bjarnason

to the negotiated, going issue the clear important fully And pretty an there. to That opportunity came Hunt close. was transaction timing there I much that when fourth up but quarter, late relatively think understand is it that wasn't in yet was an was

the to first better the separate transaction at year-end, So, that them basically them the by decided wrap Hunt week the of transaction, rather they for than XXth January. try was of close said courses. sort And in close it into that we to that fact had to on put hour party of

And rarely like the to transaction transactions of closed. equity on actually a at the before want bought book, Hunt that that our we basis. expect MMAC. transaction in we going-forward debt we I focus that transactions -- So that in the general, bring because would to I the sort of complications would -- do opportunities kinds would future, of And we those on would

MMA LP in old-school that portfolio ways would for wouldn't interest So Having lot going those gasp expect business the sold an mine see Hunt, a of opportunities. purchase that of that was on we the of of some forward. essentially that last had we the sort I to books the now mining at

Greg Venit

number, the does... of of did acquisition was you value the raw interest a partnership the What from value -- me or was the the disclose what it maybe give that for maybe

Dave Bjarnason

disclosures Greg, we Yes, we to various me you yes, if second. I page give go our provided believe respect And and a yes, partnerships. to investments our filing, -- XX provide of -- think with I

So partnerships, in in real the entitled there. will subsection find U.S. investments it estate disclosed in you

Greg Venit

There's $XXX,XXX?

Dave Bjarnason

Yes, No, I give me second. X think...

Michael Falcone

No, that's it's $X right. It's ballpark, not million.

Dave Bjarnason

Yes.

Greg, The talks quarter paragraph with about that that, language third first that paragraph, XXXX during begins the so. of

Greg Venit

Okay. X.X million.

Dave Bjarnason

Yes.

Greg Venit

own own property real the you main in estate estate that you now, right right? The is is the Okay. Virginia that right that real Winchester, now

Michael Falcone

Mobile. project project the Russell in in the Fort it's Winchester It's and Spanish XXX

Greg Venit

as state think, for along they? The access far how allow far to was in your the infrastructure they far are along -- I Virginia, putting are Yes. to property, in how property

Michael Falcone

new if existing. out there and going that's this over to to with there's to interstate come road does we to And construction out in be the next already, the road summer. I Well, access is that it's to sort it the nearly it road. That have designed. or significant mean, another gone bid expect to month intersect But is property would on due go so. starting of bid road road frontage. hasn't fully now And the

Greg Venit

of was, cross over allow would think, that them housing residential it's that the So Russell to development XXX I highway? the the

Michael Falcone

It's mix it, big some are multifamily big a of some, call There There commercial house, parcels. There's kind are parcels. store parcel. a use. there's convenience

it's So little a bit of everything.

Greg Venit

that, far interest in or as monetization? Any as

Michael Falcone

Yes.

of plenty it. interest have We in

Greg Venit

the not right It's price?

Michael Falcone

available the over it was whether through of we seen. to to makes we and us the to of is continue that course But it in sort be joke. trying meant, bad probably good to sort I property No, are develop monetize remains out year. hold or now, sort to time of one sense it. to that is we market conclude ongoing Yes. what it it's to continue a Whether of process will now this will That will price develop maybe rest whether looking of or a to at be that

to Fort what Russell, figure here and I maximize that's to think, and trying and our sort we're we've move is we view do. how said, both out to Spanish relative value to role of on

Greg Venit

When the that putting selling and you and sewers development eat say like develop, then to develop the Mike, just lots doing are develop you lots about roads talking on actually? infrastructure or or

Michael Falcone

product get some infrastructure from value. as built until how we work be up had be doing We in things we properties of create we to terms our point with get maximize need little or as directly choice, the wouldn't to developer, to order will way in empty and value the investment been maximum look this Russell as of either point. if but But will go a preference we partners not to I value. to far future, do a everything would ground or our case negotiating maximize won't development in can we that from would go those do in was in vertical we puts have the think to it as the these property. are But we do At as first that a in land if saying, become us to and we to weaker value. it drawing line stance we to I know in that won't sand do But essentially think the because developer a do vertical

Greg Venit

the and -- bit have bond capital over of quite estate. update of $XX the ownership on Fort, of the you a Spanish between And Okay. million what real

Michael Falcone

Correct.

real ownership We bond and estate. of the have a

Greg Venit

it... Is is there down or any there, improvement

Michael Falcone

bucket continuing monetized, right. And the There But steady and we're the to slow to -- is say, liabilities development don't sort slow that order we progress sort we been hard in which to value run try property realized. haven't where sort it's we I of so. that's have has -- through the work progress. the there. we value would grind Again, like that for maximize is that in are position get and side, assets, is had that's really of there to nonstrategic other jumpstart would there part to on a been assets of things. has to in -- bucket asset holding to the a most a And really home

Greg Venit

-- the for So correct? really driver growth area, essentially is solar going lending that in forward the is

Michael Falcone

of in tax risk XX-year affordable would housing now, the particularly Right Lending arena. sort making we of elements in that find two multifamily is solar on something it. I say area bonds look attractive. exempt reward, we sort when at there lending the in investments and that to are the side not

So we're business. not originating new bond affordable in out the investments long-term

for is originating, at to which estate any forward looking yet. invest in. that attractive existing been what that debt, We to the one-off sort are haven't reason. believe opportunities may shareholders there real we've we of and deals Hunt organization other that bonds of done buy is which be those couple they for We've haven't interesting gone MMAC whatever we But were found a --

And peaked, the start a to wrong get to bonds. think in cycle we the So interest curve expectation will where where space. that again think longer-term hit the is normal opportunity our have I in some that's somewhat to see they Right areas the point just something rates long-term return in do essentially it to now, rate will up short as interesting we bonds. at yield debt And we're term. right, there multifamily do we think those pattern. think point, be two the But of I will to are will

Greg Venit

Longer-term bonds? taxable

Michael Falcone

Tax-exempt.

Greg Venit

pay or you $XX loss a would in net why million whatever, carry-forward bonds? million $XXX With tax-free of or

Michael Falcone

financing relatively essentially deals swapping the get capital The getting return total cost where bonds way the we finance by we those end actually partners. taxable -- up low we with in swap,

total get bonds they that us financing for the comes But taxable. the get return, to return So income swaps we and tax-exempt that are cheap relatively is that. the of because

Greg Venit

that now XX is at? it how the Is you're bond for right Okay. portfolio

Michael Falcone

the pledged, vast tax-exempt the income. portfolio of There the the total taxable portion the gets own return within is is which portfolio in majority of some income. which is But in swap, case, we

Greg Venit

Okay. All right.

public clear I up, how a what that so use guess, order you say plans Hunt think their the as as say transferred you traded to other in happening some -- the companies to vehicle? of do I mean, vehicle. I what -- publicly with over they're that should transferred their there you see is picking far Hunt is has would there or MMA, is mandate portfolios swapped there I -- are use organization, the see some for going MMA? Do yourself -- that

Michael Falcone

grow is estate other plan are we group, may larger our that business, which originated business. housing in, been There in. the MMA Hunt the loans be to energy company may now, clean by involved Right traditionally investments the that the the exempt to has housing choose invest real affordable and tax affordable business

stopping is sheet way don't MMA right Hunt if of balance old to MMA, purely we Some now the assets, although repository that end the Hunt got enough. see will. through may But becoming on up those mechanics we you of on loans a those

Operator

more questions to are closing there the at the turn present Falcone call As really Mr. I'd no any time, [Operator Instructions] like to comments. for

Michael Falcone

just support. shareholders Thanks, Keith. for our all their Again, I'd to like thank

looking business of to the the busy. in us an and the in in forward forward we're back will think And affordable housing go Hunt we're focus making managing that year kept present we transaction I looking the quarter, here, to first loans core the opportunities forward. was important core for turning energy moves as space forward the turns, businesses, to certainly transaction space. and on us as And

And look another So a all you call to very you. thank here months. Thank more few much. in we forward

Operator

attending for now conference The concluded. has you. today's Thank you Thank presentation.

You may now your lines. disconnect

MMA Capital (Trading Symbol(s) MMAC MMAC) 15 May 182018 Q1 Earnings call transcript