Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Q3 2021 Earnings Presentation
19 slides from Apollo Commercial Real Estate Finance's earnings presentation, Oct 26, 2021
Slide 1: Q3 2021 Financial Results
Q3 2021 Financial Results October 25, 2021 Exhibit 99.2
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 YTD 9/30/2021 Highlights
ARI YTD 9/30/2021 Highlights See footnotes on page 18 Strong Distributable Earnings1,a $1.15 Distributable Earnings1 per Diluted Share of Common Stock Durable Balance Sheet $1.7 Billion of Unencumbered Loan Assets3 Robust Originations Activity $1.5 Billion New Mortgage Commitments Closed Well-Covere
Slide 4: Originations Summary Results
Originations Summary Results See footnotes on page 18 Amount reflects Distributable Earnings, prior to realized losses and impairments on real estate owned, investments, and interest rate swap Excludes benefit of forward points on currency hedges related to loans denominated in currencies other than
Slide 5: Key Highlights
Key Highlights $180 million $1.5 billion Commitments to New Mortgage Loans Portfolio Activity Q3 Portfolio Activity 8 ($ in mm) Includes benefit of forward points on currency hedges related to loans denominated in currencies other than USD; Weighted Average Unlevered All-in Yield is based on the app
Slide 6: Book Value per Share Roll Forward
Book Value per Share9 Roll Forward Quarterly Book Value per Share9 Book Value per Share See footnotes on page 18 10
Slide 7: Capital Structure Overview
Capital Structure Overview See footnotes on page 18 ($ in mm) Secured Debt Obligationsa Common Equity Book Valueb Convertible Notes Preferred Stock $3,451 (45%) $575 (8%) $169 (2%) Prudent Management of ARI’s Balance Sheet Results in Low Leverage and Diverse Capital Sources Capital Structure Composi
Slide 8: Loan Portfolio Overview
Loan Portfolio Overview See footnotes on page 18 Diversified Loan Portfolio Secured by Predominately Institutional Properties in Global Gateway Cities Collateral Diversification Loan Position W/A Unlevered All-in Yield on Loan Portfolio6,7,a 5.2% W/A Remaining Fully-Extended Term7,13,16 2.7 Years W/
Slide 9: Loan Portfolio Overview (cont'd)
Loan Portfolio Overview (cont’d) See footnotes on page 18 ($ in mm) a 7,10,15, New York City 30% West 7% Midwest 7 10% Southeast 10% Southwest 2% Northeast 2% Geographic Diversity Note: Map does not show locations where percentages are 1% or lower Italy 2% United Kingdom 21% Spain 4% Germany 7% 8 Ot
Slide 10: Q3 Business Update
Q3 Business Update Summary of Repayments and Sales $339 million of full loan repayments: $198 million repayment of a floating-rate first mortgage secured by an office property located in Manhattan $89 milliona repayment of a floating-rate first mortgage secured by 29 logistics distribution centers a
Slide 11: Senior Loan Portfolio Overview
See footnotes on page 18 Senior Loan Portfolio Overview (Page 1 of 2) ($ in mm) 13, 16 Includes £20.0 million ($26.9 million converted to USD) subordinate participating interest a
Slide 12: Senior Loan Portfolio Overview
See footnotes on page 18 Senior Loan Portfolio Overview (Page 2 of 2) ($ in mm) 17 17 17 8 13, 16 Includes portfolio of office, industrial, and retail property types a
Slide 13: Subordinate Loan Portfolio Overview
Subordinate Loan14 Portfolio Overview Loans are secured by the same property. Previously disclosed as one loan. Loan classified as held for sale Loan and single-asset, single-borrower CMBS are secured by the same properties. In the form of a single-asset, single-borrower CMBS See footnotes on page 1
Slide 14: Loan Maturities and Future Fundings Profile
Loan Maturities and Future Fundings Profile See footnotes on page 18 Fully-Extended Loan Maturities and Expected Future Fundings by Net Equity7,16,18,19 ($ in mm) Note: Assumes future financing, in certain cases, against mortgages that are not currently financed Net of expected secured credit facili
Slide 15: Apollo Commercial Real Estate Finance
APOLLO | commercial Real Estate Finance 4
Slide 16: Consolidated Balance Sheets
(in thousands - except share data) September 30, 2021 December 31, 2020 f Assets: Cash and cash equivalents $243,414 $325,498 Commercial mortgage loans, net a,b 6,397,772 5,451,084 Subordinate loans and other lending assets, net b 817,759 1,045,893 Real estate owned, net (Net of $1,548 accumulated d
Slide 17: Consolidated Statements of Operations
(in thousands - except share and per share data) Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net interest income: Interest income from commercial mortgage loans $84,304 $74,522 $242,107 $232,018 Interest income from subordinate loans and other lending assets
Slide 18: Distributable Earnings Reconciliation
(in thousands - except share and per share data) Three Months Ended September 30, Nine Months Ended September 30, Distributable Earnings1: 2021 2020 2021 2020 Net income (loss) available to common stockholders: $57,266 $45,953 $176,522 ($28,458 ) Adjustments: Equity-based compensation expense 4,405
Slide 19: Footnotes
Footnotes Distributable Earnings, formerly known as Operating 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 f
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