Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Investor Presentation (February 2024)
21 slides from Apollo Commercial Real Estate Finance's investor presentation, February 2024
Slide 1: Apollo Commercial Real Estate Finance Investor Presentation
Apollo Commercial Real Estate Finance Investor Presentation February 2024 Unless otherwise noted, information as of December 31, 2023. Confidential and Proprietary - Not for distribution, in whole or in part, without the express written consent of Apollo Global Management, Inc. It should not be assu
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: Differentiated Origination and Asset Management Platform
Differentiated Origination and Asset Management Platform ARI benefits from being part of Apollo’s leading global CRE debt franchise PREMIER GLOBAL LEADING ASSET MANAGER ORIGINATION Market intelligence, asset level PLATFORM insight and information sharing 42 investment professionals in 4 across a glo
Slide 6: Loan Portfolio Overview
Loan Portfolio Overview W/A Unlevered All-in Yield Number of Loans Carrying Value on Loan Portfolio7,a 50 $8.4 billion 8.7% W/A Remaining Fully-Extended W/A Portfolio Risk Rating8 W/A Portfolio Loan-to-Value8,b Term8,9 3.0 57% 2.3 Years Collateral Diversification Origination Vintage8 Loan Position I
Slide 7: Loan Portfolio Overview (cont'd)
Loan Portfolio Overview (cont’d) ($ in mm) United New Other a 10 Property Type Kingdom York City Europe Southeast Midwest West Northeast Other Total Hotel $192 / 2% $146 / 2% $863 / 10% $368 / 4% $57 / 1% $334 / 4% $9 / 0% $160 / 2% $2,129 / 25% Office 456 / 5% 455 / 5% 494 / 6% - 188 / 2% - - - 1,5
Slide 8: Office Loan Portfolio Overview
Office Loan Portfolio Overview Number of Loans a Carrying Value c First Mortgage W/A Loan-to-Value8,b 9 Loans $1.5 Billion 99% 50% Loans with 3rd Party Fully Leased W/A Risk Rating8 Subordinate Debt to Credit Tenantd 2.9 2 Loans 19% Origination Vintage8 Location Fully Extended Maturities8 $786 57% $
Slide 9: Capital Structure Overview
Capital Structure Overview Capital Structure Composition Conservative Capital Management Strategy ($ in mm) No Corporate Debt ~70% Weighted Average Available Maturities until 2026 Advance Ratee Secured Debt Arragementsa,b,c 3.0x Debt to Equity Ratio5 1.4x Fixed Charge Coverage12 $5,552 (60%) Corpora
Slide 10: Continued Tailwinds from Elevated Interest Rates
Continued Tailwinds from Elevated Interest Rates Predominately floating rate portfolio with low leverage and global geographic diversification NET INTEREST INCOME SENSITIVITY TO BENCHMARK RATES 13,A Benchmark Rates Index Dec-31 SOFR 1M 5.35% EURIBOR 3.91% SONIA ON 5.19% +$0.02 Net Interest Income Pe
Slide 11: Investment Highlights
Investment Highlights 1 Fourteen-Year Track Record as an Innovative, Creative Global CRE Debt Provider 2 “First Call Relationships” with Real Estate Sponsors, Brokers and Capital Partners 3 Power of Apollo Sponsorship 4 Stable and Diverse Portfolio 5 Well-Positioned for Rising Interest Rates 6 13% D
Slide 12: Appendix
Appendix Private and Confidential 12
Slide 13: Corporate Responsibility
Corporate Responsibility ARI is committed to responsible investing ARI recognizes the importance of environmental, social and governance (“ESG”) issues and incorporates ESG considerations into investment analysis and decision- making processes. ARI strives to make a positive impact on all of the Com
Slide 14: Consolidated Balance Sheets
Consolidated Balance Sheets ($ in thousands - except share data) December 31, 2023 December 31, 2022 Assets: Cash and cash equivalents $225,438 $222,030 Commercial mortgage loans, net a,d 7,925,359 8,121,109 Subordinate loans and other lending assets, net b,d 432,734 560,881 c Real estate owned, hel
Slide 15: Consolidated Statement of Operations
Consolidated Statement of Operations ($ in thousands - except share and per share data) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Net interest income: Interest income from commercial mortgage loans $180,290 $151,882 $701,002 $456,513 Interest income from subordinate
Slide 16: Reconciliation of GAAP Net Income to Distributable Earnings
Reconciliation of GAAP Net Income to Distributable Earnings14 ($ in thousands - except share and per share data) Three Months Ended December 31, Year Ended December 31, Distributable Earnings14: 2023 2022 2023 2022 Net income available to common stockholders: $43,472 ($7,054) $45,855 $252,960 Adjust
Slide 17: Senior Loan Portfolio (1 of 3)
Senior Loan Portfolio (1 of 3) ($ in mm) Origination Amortized Unfunded Construction 3rd Party Fully-extended Hotel Date Cost Commitments Loan Subordinate Debt Maturity 9 Location Loan 1 10/2019 $348 $24 Y 08/2024 Various, Spain Loan 2 12/2023 273 - 12/2028 Various, Europe Loan 3 11/2021 227 13 Y 11
Slide 18: Senior Loan Portfolio (2 of 3)
Senior Loan Portfolio (2 of 3) ($ in mm) Origination Amortized Unfunded Construction 3rd Party Fully-extended Retail Date Cost Commitments Loan Subordinate Debt Maturity 9 Location Loan 23 04/2022 $478 $37 04/2027 Various, UK Loan 24 10/2021 414 - 10/2026 Various, UK Loan 25 08/2019 250 - Y 09/2025
Slide 19: Senior Loan Portfolio (3 of 3)
Senior Loan Portfolio (3 of 3) ($ in mm) Origination Amortized Unfunded Construction 3rd Party Fully-extended 9 Healthcare Date Cost Commitments Loan Subordinate Debt Maturity Location Loan 39 03/2022 $352 - 03/2027 Various, MA Loan 40 10/2019 160 - 10/2024 Various, UK Subtotal - Healthcare $512 - O
Slide 20: Subordinate Loan Portfolio
Subordinate Loan Portfolio ($ in mm) Origination Amortized Unfunded Construction 3rd Party Fully-extended Date Cost Commitments Loan Subordinate Debt Maturity 9 Location 16 Manhattan, NY Loan 47 - Residential 06/2015 $233 - 09/2024 15,16 Loan 48 - Residential 05/2020 170 - 09/2024 Manhattan, NY Loan
Slide 21: Footnotes
Footnotes 1. Reflects closing share price on February 13, 2024 and for equity market capitalization, includes preferred stock outstanding as of December 31, 2023. 2. Apollo refers to Apollo Global Management, Inc. and its consolidated subsidiaries. 3. Assets Under Management (“AUM”) - The assets of
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