Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Q1 2025 Earnings Presentation
22 slides from Apollo Commercial Real Estate Finance's earnings presentation, Apr 25, 2025
Slide 1: Q1 2025 Financial Results
Q1 2025 Financial Results Apollo Commercial Real Estate Finance, Inc. April 24, 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: Q1 Summary Results
Q1 Summary Results Net income available to common stockholders of $23 million, or $0.16 per diluted share of common stock Financial Results Distributable Earnings1 of $33 million, or $0.24 per diluted share of common stock Declared common stock dividends of $0.25 per share, which implies a div
Slide 4: Per Share Overview
Per Share Overview Distributable Earnings per Share1,6,(a) Book Value per Share7 $12.77 $12.66 $0.43 $0.25 $0.48 $0.25 $0.32 $12.34 $12.18 $0.24 4Q'24 1Q'25 4Q'24 1Q'25 Distributable Earnings per Share1,6,(a) BVPS Post-General CECL Allowance & Depreciation Quarterly Dividend General CECL All
Slide 5: Portfolio Activity & REO Overview
Portfolio Activity & REO Overview Q1 Portfolio Activity ($ in mm) $148 Add-on Funding5 ($5) $73 ($93) $460 $7,728 New Funding $7,145 4Q244 Fundings Repayments FX Other9 1Q25 4,8 Update on 111 West 57th Street REO Overview & Update Strong sales momentum resulted in the closing of three Brooklyn M
Slide 6: Q1'25 Loan Originations
Q1’25 Loan Originations Key Highlights $650 million 100% 8.5% 56% New Commitments Floating Rate Weighted Average Weighted Average Closed First Mortgages Unlevered All-in Yield3 Loan-to-Value(a) Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Floating-Rate Senior Loan Floating-Rate Seni
Slide 7: Loan Portfolio Overview
Loan Portfolio Overview Carrying Value/ W/A Unlevered All-in Yield Loan Position10 Number of Loans on Loan Portfolio3,10,(a) $7.7 billion/48 Loans 95% First Mortgage 7.9% W/A Remaining Fully-Extended W/A Portfolio Risk Rating10 W/A Portfolio Loan-to-Value(b) Term10,11 2.4 Years 3.0 57% Collateral Di
Slide 8: Loan Portfolio Overview (cont'd)
Loan Portfolio Overview (cont’d) ($ in mm) United New Other Property Type Kingdom York City Europe Southeast West Midwest Other (d) Total8 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 9: Office Loan Portfolio Overview
Office Loan Portfolio Overview Number of Loans(a) Carrying Value First Mortgage10 W/A Loan-to-Value(b) 10 Loans $1.8 Billion 100% 50% Loans with 3rd Party Largest commitment 100% W/A Risk Rating10 Subordinate Debt leased to credit tenant(c) 2.9 3 Loans $712 million Origination Vintage10 Location10 F
Slide 10: Senior Loan Portfolio
Senior Loan Portfolio ($ in mm) Property Origination Amortized Unfunded Construction 3rd Party Fully-extended 11 Office Type Date Cost Commitments Loan Subordinate Debt Maturity Location (a) London, UK Loan 1 Office 02/2022 $494 $213 12/2028 Loan 2 Office 03/2022 256 10 Y 04/2027 Manhattan, NY Loan
Slide 11: Senior Loan Portfolio (cont.)
Senior Loan Portfolio (cont.) ($ in mm) Property Origination Amortized Unfunded Construction 3rd Party Fully-extended 11 Residential Type Date Cost Commitments Loan Subordinate Debt Maturity Location Loan 20 Residential 12/2021 $235 $10 02/2027 Various, UK Loan 21 Residential 07/2024 193 - 07/2029 V
Slide 12: Senior Loan Portfolio (cont.)
Senior Loan Portfolio (cont.) ($ in mm) Property Origination Amortized Unfunded Construction 3rd Party Fully-extended 11 Industrial Type Date Cost Commitments Loan Subordinate Debt Maturity Location Loan 36 Industrial 03/2021 $246 - 05/2026 Various, Sweden Loan 37 Industrial 08/2024 153 80 Y 08/2029
Slide 13: Subordinate Loan & Other Lending Assets Portfolio
Subordinate Loan & Other Lending Assets Portfolio ($ in mm) Property Origination Amortized Unfunded Construction 3rd Party Fully-extended Type Date Cost Commitments Loan Subordinate Debt Maturity 11 Location 14 Manhattan, NY Loan 45 Residential 06/2015 $301 - 11/2025 14 Loan 46 Residential 08/2022 7
Slide 14: Subsequent Events
Subsequent Events Strong investment activity continues through Q2 2025 with $994 million(a)(b) funded across four new originations and previously closed commitments, bringing year-to-date fundings to over $1.5 billion(a)(b) Q2 2025 Originations(a) Loan Type Floating-Rate Senior Loan Floating-Rate
Slide 15: Capital Structure Overview
Capital Structure Overview Capital Structure Composition Conservative Capital Management Strategy ($ in mm) 10 Secured Debt Arrangements(c) Across 9 Counterparties ~70% W/A Available Advance Rate(e) Secured Debt Arrangements(a),(b),(c) $5,230 (60%) 3.5x Debt to Equity Ratio15 Corporate Debt Maturiti
Slide 16: Mitigating Foreign Exchange Risk
Mitigating Foreign Exchange Risk We have taken several risk mitigating steps to structure and fund our non-US loan portfolio and associated secured financing facilities to position ARI for fluctuating foreign exchange rates Foreign Exchange Rate Change (Local/USD) 1.34x 1.29x % FX Change QoQ % FX Ch
Slide 17: Loan Maturities and Future Funding Profile
Loan Maturities and Future Funding Profile Fully-Extended Loan Maturities and Expected Future Fundings by Net Equity4,11,16,17 ($ in mm) $934 $645 $471 $458 $410 $281 $166 $9 $6 $0 2025 2026 2027 2028 2029 & Beyond (a) Fully-Extended Maturities (Net Equity)(a) Expected Net Future Fundings Net Intere
Slide 18: Appendix
Appendix Consolidated Balance Sheets Consolidated Statement of Operations Reconciliation of GAAP Net Income to Distributable Earnings 18
Slide 19: Consolidated Balance Sheets
Consolidated Balance Sheets ($ in thousands - except share data) March 31, 2025 December 31, 2024 Assets: Cash and cash equivalents $166,424 $317,396 Commercial mortgage loans, net (a)(b) 7,285,022 6,715,347 Subordinate loans, net (b) 402,064 388,809 Real estate owned, held for investment, net (c) (
Slide 20: Consolidated Statement of Operations
Consolidated Statement of Operations ($ 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 $183,716 Interest income from subordinate loans and other lending assets 557 849 Interest expens
Slide 21: Reconciliation of GAAP Net Income to Distributable Earnings
Reconciliation of GAAP Net Income to Distributable Earnings1 ($ in thousands - except share and per share data) Three Months Ended March 31, 2025 2024 1 Distributable Earnings : Net income (loss) available to common stockholders: $22,923 ($107,592) Adjustments: Equity-based compensation expense 3,43
Slide 22: Footnotes
Footnotes 1. Distributable Earnings is a non-GAAP financial measure that we define as net income available to common stockholders, computed in accordance with GAAP, adjusted for (i) equity-based compensation expense (a portion of which may become cash-based upon final vesting and settlement of award
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