Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Investor Presentation (May 2025)
22 slides from Apollo Commercial Real Estate Finance's investor presentation, May 2025
Slide 1: Apollo Commercial Real Estate Finance Investor Presentation
Apollo Commercial Real Estate Finance Investor Presentation May 2025 Unless otherwise noted, information as of March 31, 2025. It should not be assumed that investments made in the future will be profitable or will equal the performance of the investments shown in this document.
Slide 2: Forward Looking Statements and Other Disclosures
Forward Looking Statements and Other Disclosures This presentation may contain forward-looking statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be c
Slide 3: Apollo Commercial Real Estate Finance
Apollo Commercial Real Estate Finance Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI) is a LEADING COMMERCIAL MORTGAGE REIT focused on originating SENIOR MORTGAGES and SUBORDINATE LOANS collateralized by a variety of property types and geographies throughout the UNITED STATES, the UNITED KING
Slide 4: A History of Success Centered on Four Key Factors
A History of Success Centered on Four Key Factors ARI has a Reputation as an Innovative, Creative Global CRE Debt Provider 1 2 3 4 APOLLO 2 DIFFERENTIATED STABLE AND DIVERSE PRUDENT BALANCE SPONSORSHIP ORIGINATION & ASSET PORTFOLIO SHEET MANAGEMENT MANAGEMENT PLATFORM High-growth global alternativ
Slide 5: Apollo Real Estate Credit Platform Overview
Apollo Real Estate Credit Platform Overview ~$100B+ Total Capital Invested $61B+ Global Assets Under $16B+ 2024 Global Loan 50+ Investment Since 2009 Management Originations Professionals Platform Highlights Select Borrower Relationships Vertically integrated, with full-scale real estate loan origin
Slide 6: Loan Portfolio Overview
Loan Portfolio Overview Carrying Value/ W/A Unlevered All-in Yield Loan Position8 Number of Loans on Loan Portfolio7,8,(a) $7.7 billion/48 Loans 95% First Mortgage 7.9% W/A Remaining Fully-Extended W/A Portfolio Risk Rating8 W/A Portfolio Loan-to-Value(b) Term8,9 2.4 Years 3.0 57% Collateral Diversi
Slide 7: Loan Portfolio Overview (cont'd)
Loan Portfolio Overview (cont’d) ($ in mm) United New Other 10 Property Type Kingdom York City Europe Southeast West Midwest Other (d) Total Residential(a) $578 / 7% $410 / 5% - $318 / 4% $224 / 3% $149 / 2% $201 / 3% $1,880 / 24% Office 672 / 9% 485 / 6% 489 / 6% - - 173 / 2% - 1,818 / 24% Hotel 7
Slide 8: Office Loan Portfolio Overview
Office Loan Portfolio Overview Number of Loans(a) Carrying Value First Mortgage8 W/A Loan-to-Value(b) 10 Loans $1.8 Billion 100% 50% Loans with 3rd Party Largest commitment 100% W/A Risk Rating8 Subordinate Debt leased to credit tenant(c) 2.9 3 Loans $712 million Origination Vintage8 Location8 Fully
Slide 9: Loan Maturities and Future Funding Profile
Loan Maturities and Future Funding Profile Fully-Extended Loan Maturities and Expected Future Fundings by Net Equity9,17,(a),(b) ($ in mm) $934 $645 $471 $458 $410 $281 $166 $9 $6 $0 2025 2026 2027 2028 2029 & Beyond (c) (c) Fully-Extended Maturities (Net Equity) Expected Net Future Fundings Note: A
Slide 10: Non-Performing and REO Assets: Path to Resolution
Non-Performing and REO Assets: Path to Resolution ARI remains focused on proactive asset management and targeting resolution on focus assets as we seek to maximize value recovery and convert non-accrual and underperforming capital into capital generating an ROE consistent with recently originated lo
Slide 11: Capital Structure Overview
Capital Structure Overview Capital Structure Composition Conservative Capital Management Strategy ($ in mm) 10 Secured Debt Arrangements(c) Across 9 Counterparties ~70% W/A Available Advance Rate(e) Secured Debt Arrangements(a),(b),(c) $5,230 (60%) 3.5x Debt to Equity Ratio5 Corporate Debt Maturitie
Slide 12: Continued Tailwinds from Elevated Base Interest Rates
Continued Tailwinds from Elevated Base Interest Rates Predominately floating rate portfolio with low leverage and global geographic diversification NET INTEREST INCOME SENSITIVITY TO BENCHMARK RATES 12,17(a) Benchmark Rates Index Mar-31 SOFR 1M 4.34% EURIBOR 2.33% SONIA ON 4.47% +$0.01 +$0.01 +$0.01
Slide 13: Investment Highlights
Investment Highlights 1 Sixteen-Year Track Record as an Innovative, Creative Global CRE Debt Provider 2 “First Call Relationships” with Real Estate Sponsors, Brokers and Capital Partners 3 Power of Apollo Sponsorship 4 Stable and Diverse Portfolio 5 Tailwinds from Elevated Base Rates 6 10.5% Dividen
Slide 14: Appendix
APOLLO Appendix
Slide 15: Consolidated Balance Sheets
Consolidated Balance Sheets ($ in thousands - except share data) March 31, 2025 December 31, 2024 Assets: Cash and cash equivalents $166,424 $317,396 Commercial mortgage loans, net (a)(b) 7,285,022 6,715,347 Subordinate loans, net (b) 402,064 388,809 Real estate owned, held for investment, net (c) (
Slide 16: Consolidated Statement of Operations
Consolidated Statement of Operations ($ in thousands - except share and per share data) Three Months Ended March 31, 2025 2024 Net interest income: Interest income from commercial mortgage loans $143,985 $183,716 Interest income from subordinate loans and other lending assets 557 849 Interest expens
Slide 17: Reconciliation of GAAP Net Income to Distributable Earnings
Reconciliation of GAAP Net Income to Distributable Earnings13 ($ in thousands - except share and per share data) Three Months Ended March 31, 2025 2024 13 Distributable Earnings : Net income (loss) available to common stockholders: $22,923 ($107,592) Adjustments: Equity-based compensation expense 3,
Slide 18: Senior Loan Portfolio
Senior Loan Portfolio ($ in mm) Property Origination Amortized Unfunded Construction 3rd Party Fully-extended 9 Office Type Date Cost Commitments Loan Subordinate Debt Maturity Location (a) London, UK Loan 1 Office 02/2022 $494 $213 12/2028 Loan 2 Office 03/2022 256 10 Y 04/2027 Manhattan, NY Loan 3
Slide 19: Senior Loan Portfolio (cont.)
Senior Loan Portfolio (cont.) ($ in mm) Property Origination Amortized Unfunded Construction 3rd Party Fully-extended 9 Residential Type Date Cost Commitments Loan Subordinate Debt Maturity Location Loan 20 Residential 12/2021 $235 $10 02/2027 Various, UK Loan 21 Residential 07/2024 193 - 07/2029 Va
Slide 20: Senior Loan Portfolio (cont.)
Senior Loan Portfolio (cont.) ($ in mm) Property Origination Amortized Unfunded Construction 3rd Party Fully-extended 9 Industrial Type Date Cost Commitments Loan Subordinate Debt Maturity Location Loan 36 Industrial 03/2021 $246 - 05/2026 Various, Sweden Loan 37 Industrial 08/2024 153 80 Y 08/2029
Slide 21: Subordinate Loan & Other Lending Assets Portfolio
Subordinate Loan & Other Lending Assets Portfolio ($ in mm) Property Origination Amortized Unfunded Construction 3rd Party Fully-extended Type Date Cost Commitments Loan Subordinate Debt Maturity 9 Location 15 Manhattan, NY Loan 45 Residential 06/2015 $301 - 11/2025 15 Loan 46 Residential 08/2022 74
Slide 22: Footnotes
Footnotes 1. Reflects closing share price on May 2, 2025 and for equity market capitalization, includes preferred stock outstanding as of March 31, 2025. 2. Apollo refers to Apollo Global Management, Inc. and its consolidated subsidiaries. 3. Assets Under Management (“AUM”) - The assets of the funds
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