Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Q1 2024 Earnings Presentation
21 slides from Apollo Commercial Real Estate Finance's earnings presentation, Apr 30, 2024
Slide 1: Q1 2024 Financial Results
Q1 2024 Financial Results Apollo Commercial Real Estate Finance, Inc. April 29, 2024 Unless otherwise noted, information as of March 31, 2024 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: ARI Highlights
ARI Highlights Q1’24 Distributable Earnings1 Consistent Distributions $0.35 16 Quarters Distributable Earnings1 per Diluted Share of Common Stock Maintained $0.35 dividend distribution since Q2 2020 Floating Rate Portfolio Weighted Average Remaining Term on Corporate Debt2 99% Percentage Floating Ra
Slide 4: Q1 Summary Results
Q1 Summary Results Net loss attributable to common stockholders of $(108) million, or $(0.76) per diluted share of common stock – Includes an increase of $142 million in Specific CECL Allowance recorded on a subordinate loan secured by our interest in an ultra-luxury residential Financial Results
Slide 5: Per Share Overview
Per Share Overview Distributable Earnings per Share1,7,a Book Value per Share8 . $14.80 $14.74 $14.73 $0.33 $13.59 $0.29 $0.30 $0.37 $0.35 $14.47 $13.22 $14.45 $14.43 Q1’24 Specific ($1.00) CECL Allowance 2Q'23 3Q'23 4Q'23 1Q'24 2Q'23 3Q'23 4Q'23 1Q'24 Distributable Earnings per Share 1,7,a Quar
Slide 6: Portfolio Activity & REO Overview
Portfolio Activity & REO Overview Q1 Loan Portfolio Activity ($ in mm) Add-on ($176) Funding 6 ($142) $322 ($72) ($4) $8,358 $8,286 9 4,10 4Q23 Fundings Repayments Specific CECL FX Other 1Q24 $142 million additional Specific CECL Allowance recorded on a subordinate loan secured by our interest in
Slide 7: Capital Structure Overview
Capital Structure Overview Capital Structure Composition Conservative Capital Management Strategy ($ in mm) No Corporate Debt ~70% Weighted Average Available Maturities until May 2026 Advance Ratee Secured Debt Arragementsa,b,c 3.3x Debt to Equity Ratio11 1.3x Fixed Charge Coverage12 $5,610 (61%) Co
Slide 8: Loan Portfolio Overview
Loan Portfolio Overview4 W/A Unlevered All-in Yield Number of Loans Carrying Value on Loan Portfolio5,13,a 49 $8.3 billion 9.1% W/A Remaining Fully-Extended W/A Portfolio Risk Rating13 W/A Portfolio Loan-to-Value13,b Term13,15 2.3 Years 3.0 57% Collateral Diversification13 Origination Vintage13 Loan
Slide 9: Loan Portfolio Overview (cont'd)
Loan Portfolio Overview (cont’d) ($ in mm) United New Other 10 Property Type Kingdom York City Europe Southeast Midwest West 4 Northeast Other b Total Hotel $194 / 2% $140 / 2% $713 / 9% $368 / 4% $57 / 1% $338 / 4% $9 / 0% $159 / 2% $1,979 / 24% Office 506 / 6% 459 / 6% 485 / 6% - 185 / 2% - - - 1,
Slide 10: Office Loan Portfolio Overview
Office Loan Portfolio Overview Number of Loans a Carrying Value c First Mortgage W/A Loan-to-Value13,b 10 Loans $1.6 Billion 99% 51% Loans with 3rd Party Largest commitment 100% W/A Risk Rating13 Subordinate Debt leased to credit tenantd 2.8 3 Loans $635 million Origination Vintage13 Location13 Full
Slide 11: Mitigating Foreign Exchange Risk
Mitigating Foreign Exchange Risk ARI is well-positioned for fluctuating foreign exchange rates due to several risk mitigating steps we have taken to structure and fund our non-US loan portfolio and associated secured financing facilities Foreign Exchange Rate Change (Local/USD) 1.23x 1.27x 1.22x 1.2
Slide 12: Loan Maturities and Future Funding Profile
Loan Maturities and Future Funding Profile Fully-Extended Loan Maturities and Expected Future Fundings by Net Equity15,16,17 ($ in mm) $1,164 $705 $457 $290 $178 $88 $69 $4 a 2024 2025 2026 2027 2028 & Beyond Fully-Extended Maturities (Net Equity)b Expected Net Future Fundingsb Net Interest Income S
Slide 13: Senior Loan Portfolio (1 of 3)
Senior Loan Portfolio (1 of 3) ($ in mm) Origination Amortized Unfunded Construction 3rd Party Fully-extended Hotel Date Cost Commitments Loan Subordinate Debt Maturity15 Location Loan 1 10/2019 $340 $23 Y 08/2024 Various, Spain Loan 2 12/2023 267 - 12/2028 Various, Europe Loan 3 11/2021 228 9 Y 11/
Slide 14: Senior Loan Portfolio (2 of 3)
Senior Loan Portfolio (2 of 3) ($ in mm) Origination Amortized Unfunded Construction 3rd Party Fully-extended Retail Date Cost Commitments Loan Subordinate Debt Maturity 15 Location Loan 22 04/2022 $475 $37 04/2027 Various, UK Loan 23 10/2021 410 - 10/2026 Various, UK Loan 24 08/2019 250 - Y 09/2025
Slide 15: Senior Loan Portfolio (3 of 3)
Senior Loan Portfolio (3 of 3) ($ in mm) Origination Amortized Unfunded Construction 3rd Party Fully-extended 15 Healthcare Date Cost Commitments Loan Subordinate Debt Maturity Location Loan 38 03/2022 $345 - 03/2027 Various, MA Loan 39 10/2019 159 - - 10/2024 Various, UK Subtotal - Healthcare $504
Slide 16: Subordinate Loan Portfolio
Subordinate Loan Portfolio ($ in mm) Origination Amortized Unfunded Construction 3rd Party Fully-extended Date Cost Commitments Loan Subordinate Debt Maturity 15 Location 20 Manhattan, NY Loan 46 - Residential 06/2015 $246 - 09/2024 19,20 Loan 47 - Residential 05/2020 28 - 09/2024 Manhattan, NY Loan
Slide 17: Appendix
Appendix - Consolidated Balance Sheets - Consolidated Statement of Operations - Reconciliation of GAAP Net Income to Distributable Earnings 17
Slide 18: Consolidated Balance Sheets
Consolidated Balance Sheets ($ in thousands - except share data) March 31, 2024 December 31, 2023 Assets: Cash and cash equivalents $161,190 $225,438 Commercial mortgage loans, net a,c 7,846,460 7,925,359 Subordinate loans, net b,c 303,965 432,734 Commercial mortgage loan, held for sale d 135,465 -
Slide 19: Consolidated Statement of Operations
Consolidated Statement of Operations ($ in thousands - except share and per share data) Three Months Ended March 31, 2024 2023 Net interest income: Interest income from commercial mortgage loans $183,716 $166,147 Interest income from subordinate loans and other lending assets 849 9,707 Interest expe
Slide 20: Reconciliation of GAAP Net Income to Distributable Earnings
Reconciliation of GAAP Net Income to Distributable Earnings1 ($ in thousands - except share and per share data) Three Months Ended March 31, Distributable Earnings1: 2024 2023 Net income (loss) available to common stockholders: ($107,592) $45,848 Adjustments: Equity-based compensation expense 4,188
Slide 21: 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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