Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Q2 2017 Earnings Presentation
19 slides from Apollo Commercial Real Estate Finance's earnings presentation, Aug 1, 2017
Slide 1: Supplemental Financial Information Package – Q2 2017
Exhibit 99.2 Supplemental profitable or will Financial equal the Information performance Package of investments – Q2 2017inAugust this document. 1, 2017 Information is as of June 30, 2017, except as otherwise noted. It should not be assumed that investments made in the future will be
Slide 2: Forward-Looking Statements
Forward Section substantial assumed presentation, regarding return on These “Management’s the vary not whether than “Operating that accuracy, and charge investment management’s Securities possible have in in materially on beliefs, some any accordance 21E as Looking future limitations equity, reasona
Slide 3: Q2 Highlights
Q2 Highlights stock million weighted public quarter Earnings offering end, Dividend average ARI ?Net ofNet announced underwritten 13.8 interest ?income Common million income the available shares stock IRR(2) redemption ofdividend of $62.2 toofcommon common ~13.3% of million of all$0.46 stock, of sto
Slide 4: Financial Summary
Financial 497.8% per Stockholders’ 251 Diluted 250 W.A 0.4% Summary Share(1) Diluted Equity Debt to Income $0.46 Shares 1,704 Common $0.49 1,473 Statement Outstanding Equity(4) (6.1%) 15.7% ($Balance Preferred 97 in0.9x millions, 68 1.0x 42.6% Sheet Stockholders’ Fixed except Net 1c 2Q17 Charge Inco
Slide 5: Q2 Investment Activity
Q2 Investment Loans Weighted $558 Average Commitments Activity Levered 2Q17 to IRR(2)(7) New Acquisition Loans $29$103 and Additional Origination FundingFunding New Highlights Loans $145 Additional $479 1H17 Funding Acquisition Funding New and Loans See Origination footnotes 54% Weighted onHighlight
Slide 6: Q2 Investments Overview
Q2 –23% sale NewHotel Investments 8% Urban Overview Retail/Pre-development Loan Position Geography 69% Floating WestRate 8% Subordinate 92% New York City Loans 23% 31% First Mortgages United 69% 69% Property Type Rate Type Fixed Rate 8% Residential-for
Slide 7: Commercial Real Estate Loan Portfolio Overview
Commercial Commitments(6) Life(8) Mortgage2.8Subordinate Years Real3.0 $119,813 Estate Years Loans Loan Weighted $121,470 Loans Portfolio 57% Average Current Overview 62%Weighted LTV See 2Q17 footnotes 64%Average 63% 1Q17 on Loan Number page Underwritten Position 18of6 Loans at (2) Amortized 52 12.6
Slide 8: Commercial Real Estate Loan Portfolio Overview
Commercial Northeast 11% Floating Rental 57% 5%Predevelopment Real Senior Residential—for Estate LoanLoanSee 10% Portfolio 5%footnotes Midwest sale West Overview on 14% Mixed page 12% Property 18 Use Loan Fixed 25%Type Position 5% 8%7by6%Net and MidEquity Rate Atlantic Type Geographic 7% by Amortize
Slide 9: Commercial Real Estate Loan Maturity Profile
Commercial $371.5 footnotes $318.7 on Real page$300 Estate 18 8$226.5 Loan$200 Portfolio $98.6Maturity $100 $32.0 Profile$50.5 Fully$20.9 Extended $25.0Loan $- Maturities $- $0 2017and Future 2018 2019 Fundings(10)(11)(12) 2020 2021 2022 2023 ($ in2024 millions) 2025$1,000 2026 2027 $947.2 Fully$900
Slide 10: Commercial Real Estate Loan Portfolio LTV Concentration
Commercial Cost Average $800 LTV— 50% Real Concentration 64% Estate SeeLoan footnotes Portfolio $700 on 40%page LTVs Amortized 18Loan 9 Portfolio $600 Portfolio at Amortized $500 30% Cost$400 Across $300 LTVs(13) 20% $200 ($ $100 in millions) 10%—0% $1,600 0%-40% 100% 40%-50% $1,500 90% 50%-60% $1,4
Slide 11: CMBS Portfolio
CMBS Portfolio 05947US25 22546BAH3 Amortized Cost BACM CSMCExtensions CUSIP 2005-3 2007-C5 Description (years) AJAM 61756UAJ0 36159XAH3 Value 14986DAJ9 Debt MSC Cost(14) GECMC CD 2007-1Q16 2006-CD3 2007-C1 CMBS AJAJ 46629YAH2 –AM Total 17311QBN9 46627QBC1 $300.1 JPMCC $293.3 CGCMT JMPCC 2007-CB18AJ
Slide 12: Capital Structure Overview
Capital L+2.56% Sep-18 5.50% July Stock September Ratio(4): 2012; floating Convertible 2.77% Structure 0.9x Secured 8.625% 2012; Fixed at Deutsche the Overview 8.00% Credit rate, Notes greater Charge redeemed rate, Bank Facilities ? Convertible Facility of Coverage(5): callable 300,000 3m inLIBOR Go
Slide 13: Interest Rate Sensitivity
Interest Rate Variable Liabilities Sensitivity Net Equity Variable in Rate Variable Investments 0.25% 0.50% and Liabilities(19) 0.75% 1.00% NetRateInterest Assets Income See footnotes Sensitivity on page to LIBOR(20) 18 12 ($ in millions) $0.18 ($1,096) $0.13 $0.09 $2,969 $1,873 $0.04 Variable Asset
Slide 14: Financials
Financials APOLLO
Slide 15: Consolidated Balance Sheets
Consolidated Securities, 1,240,363 Liabilities Convertible 7,742 authorized: outstanding 2016 2,236,694 Stockholders’ 69 7,015 691,983,010 1,051,236 and atSeries Common ($200,000 senior Dividends estimated Balance Equity Stockholders’ Anotes, Preferred Investment Retained $stock, Sheets aggregate pa
Slide 16: Consolidated Statements of Operations
Consolidated 6,622 loans (includes (10,471) impairments (17,557) income common39,640 $ per $15,656 Total Gain/(loss) stock $3,461 36,235 share (5,000) 28,067 Statements operating outstanding Interest and $of10,338 common on 74,030 (15,000) $7,252 income derivative expenses of$96,796,289 Operations 5
Slide 17: Reconciliation of GAAP Net Income to Operating Earnings
Reconciliation available loan convertible adjustments: shares losses of common toand senior common 17,671 of impairments GAAP notes stock 0.18 stockholders related outstanding Net 28,958 5,000 Income to0.43 equity $0.05 26,925 to Operating 96,796,289 15,000 Operating reclassification $ 0.28 0.22 Ear
Slide 18: Reconciliation of GAAP Net Income to Operating Earnings (Six Months)
Reconciliation Earnings: securities net gain outstanding (10,284) from 1,658 unconsolidated (0.11) 93,530,831 of0.02 GAAP 17,557 Net 26,802 income Net joint 0.26 67,393,751 0.39 Income venture Amortization available Provision to346 Diluted Operating to -common for -of-loan weighted Total convertible
Slide 19: Footnotes
Footnotes common should (iii) reclassification reconciliation items, for transaction the defaults certain actual future 2016, (6) underwritten replacement (8) fully payments cash June under Company’s could change. the Unfunded Remaining investments unrealized outflows related 30, funded adversely oc
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