Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Investor Presentation (November 2023)
21 slides from Apollo Commercial Real Estate Finance's investor presentation, November 2023
Slide 1: Apollo Commercial Real Estate Finance Investor Presentation
Apollo Commercial Real Estate Finance Investor Presentation November 2023 Unless otherwise noted, information as of September 30, 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 ass
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 49 $8.0 billion 8.9% W/A Remaining Fully-Extended W/A Portfolio Risk Rating8 W/A Portfolio Loan-to-Value8,b Term8,9 3.1 57% 2.4 Years Collateral Diversification Origination Vintage8 Loan Position c
Slide 7: Loan Portfolio Overview (cont’d)
Loan Portfolio Overview (cont’d) ($ in mm) United New Other a 10 Property Type Kingdom York City Europe West Southeast Midwest Northeast Other Total Hotel $175 / 2% $146 / 2% $595 / 7% $422 / 5% $367 / 5% $57 / 1% $9 / 0% $132 / 2% $1,903 / 24% Office 383 / 5% 442 / 6% 481 / 6% - - 188 / 2% - - 1,49
Slide 8: Office Loan Portfolio Overview
Office Loan Portfolio Overview Limited Office Exposure in Portfolio, with Majority of Loans Securing Properties in Europe Number of Loans a Carrying Value c W/A Risk Rating8 9 Loans $1.4 Billion 3.1 First Mortgage Loans with 3rd Party Subordinate Debt W/A Loan-to-Value8,b 99% 3 Loans 50% Origination
Slide 9: Capital Structure Overview
Capital Structure Overview Capital Structure Composition Conservative Capital Management Strategy ($ in mm) $805 Million of Unencumbered ~71% Weighted Average Available Real Estate Assets6 Advance Ratee Secured Debt Obligationsa,b,c 2.8x Debt to Equity Ratio5 1.4x Fixed Charge Coverage12 $5,147 (56%
Slide 10: Continued Tailwinds from Rising Interest Rates
Continued Tailwinds from Rising 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 Sep-30 SOFR 1M 5.32% EURIBOR 3.95% SONIA ON 5.19% +$0.03 Net Interest Income Per
Slide 11: Investment Highlights
Investment Highlights 1 Fourteen-Year Track Record as an Innovative, Creative Global CRE Debt Provider 2 “First Call Relationships” with Real Estate Sponsors, Brokers and Capital Partners 3 Power of Apollo Sponsorship 4 Stable and Diverse Portfolio 5 Well-Positioned for Rising Interest Rates 6 14% D
Slide 12: Appendix
Appendix Private and Confidential 12 GWMS,20231116-3227135-10273967-SR-[No]
Slide 13: Corporate Responsibility
Corporate Responsibility ARI is committed to responsible investing ARI recognizes the importance of environmental, social and governance (“ESG”) issues and incorporates ESG considerations into investment analysis and decision- making processes. ARI strives to make a positive impact on all of the Com
Slide 14: Consolidated Balance Sheets
Consolidated Balance Sheets ($ in thousands - except share data) September 30, 2023 December 31, 2022 Assets: Cash and cash equivalents $307,845 $222,030 a,c Commercial mortgage loans, net 7,561,254 8,121,109 Subordinate loans and other lending assets, net b,c 412,777 560,881 Real estate owned, held
Slide 15: Consolidated Statement of Operations
Consolidated Statement of Operations Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands - except share and per share data) 2023 2022 2023 2022 Net interest income: Interest income from commercial mortgage loans $180,441 $120,821 $520,712 $304,631 Interest income from su
Slide 16: Reconciliation of GAAP Net Income to Distributable Earnings
Reconciliation of GAAP Net Income to Distributable Earnings14 ($ in thousands - except share and per share data) Three Months Ended September 30, Nine Months Ended September 30, Distributable Earnings : 14 2023 2022 2023 2022 Net income available to common stockholders: 43,003 179,962 2,383 260,015
Slide 17: Senior Loan Portfolio (1 of 3)
Senior Loan Portfolio (1 of 3) ($ in mm) Origination Amortized Unfunded Construction 3rd Party Fully-extended 8 Hotel Date Cost Commitments Loan Subordinate Debt Maturity Location Loan 1 10/2019 $333 $24 Y 08/2024 Various, Spain Loan 2 11/2021 214 15 Y 11/2026 Various, UK/Ireland Loan 3 05/2022 183
Slide 18: Senior Loan Portfolio (2 of 3)
Senior Loan Portfolio (2 of 3) ($ in mm) Origination Amortized Unfunded Construction 3rd Party Fully-extended Retail Date Cost Commitments Loan Subordinate Debt Maturity 8 Location Loan 23 04/2022 $457 $36 04/2027 Various, UK Loan 24 10/2021 396 - 10/2026 Various, UK Loan 25 08/2019 250 - Y 09/2025
Slide 19: Senior Loan Portfolio (3 of 3)
Senior Loan Portfolio (3 of 3) ($ in mm) Origination Amortized Unfunded Construction 3rd Party Fully-extended 8 Healthcare Date Cost Commitments Loan Subordinate Debt Maturity Location Loan 39 03/2022 $366 - 03/2027 Various, MA Loan 40 10/2019 154 - Y 10/2024 Various, UK Subtotal - Healthcare $520 -
Slide 20: Subordinate Loan Portfolio
Subordinate Loan Portfolio ($ in mm) Origination Amortized Unfunded Construction 3rd Party Fully-extended 8 Date Cost Commitments Loan Subordinate Debt Maturity Location 16 Manhattan, NY Loan 46 - Residential 06/2015 $213 - 09/2024 15,16 Manhattan, NY Loan 47 - Residential 05/2020 170 - 09/2024 Loan
Slide 21: Footnotes
Footnotes 1. Reflects closing share price on November 9, 2023 and for equity market capitalization, includes preferred stock outstanding as of September 30, 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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