Exantas Capital Corp. (NYSE:XAN) Q4 2018 Earnings Conference Call Transcript

Mar 06, 2019 • 08:30 am ET


Exantas Capital Corp. (NYSE:XAN) Q4 2018 Earnings Conference Call Transcript


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Good day, ladies and gentlemen, and welcome to the Q4 2018 Exantas Capital Corp. Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session, and instructions will follow at that time. (Operator Instructions) As a reminder, this conference is being recorded.

I would now like to introduce your host for today's conference, Andy Carr, Head of Investor Relations. Sir, you may begin.

Andrew Carr

Thank you, Helen. Good morning, everyone, and thank you for joining our call.

Before we begin, I'd like to remind everyone that certain statements made in the course of this call are based on historical information, and may constitute forward-looking statements. When used in this conference call, the words believes, anticipates, expects, and similar expressions are intended to identify forward-looking statements. Although the Company believes that these forward-looking statements are based on reasonable assumptions, such statements are based on management's current expectations and beliefs and are subject to a number of trends, risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements.

These risks and uncertainties are discussed in the Company's reports filed with the SEC, including its reports on Forms 8-K, 10-Q and 10-K and in particular the Risk Factor section of our Form 10-K. Listeners are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update any of these forward-looking statements.

Furthermore, certain non-GAAP financial measures will be discussed on this conference call. Our presentation of this information is not intended to be considered in isolation or as a substitute to the financial information presented in accordance with GAAP. Reconciliations of these non-GAAP financial measures to the most comparable measures prepared in accordance with the generally accepted accounting principles are contained in our earnings release for the past quarter.

I will now turn it over to the Chairman of Exantas Capital Corp., Andrew Farkas for opening remarks.

Andrew L. Farkas

Thank you, Andy. Good morning, all. Thanks for joining the call. With me today are Bob Lieber, our Chief Executive Officer; Matt Stern, our President; Dave Bryant, our CFO; Paul Hughson, our Head of Commercial Real Estate Lending; and Andy Carr, who just spoke to you, Head of Investor Relations from whom I supposed you've already heard.

I want to take a moment to review our progress in 2018, before handing the call back to management for normal quarterly review. We had a great 2018. Last night, we reported $1.1 billion in new transitional commercial real estate loan originations and CMBS investment activity in 2018, which will drive core earnings growth for 2019.

2018 adjusted core earnings increased to $0.71 per share from negative $0.37 per share in 2017. With that growth in the Company's core investment portfolio for 2018 caused core earnings to accelerate which supported three consecutive quarterly dividend increases in 2018 from $0.05 per share at the beginning of the year to $0.175 per