Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Q1 2018 Earnings Presentation
18 slides from Apollo Commercial Real Estate Finance's earnings presentation, May 2, 2018
Slide 1: Supplemental Financial Information Q1 2018
Supplemental Financial Information Q1 2018 May 2, 2018 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: Q1 Highlights
Q1 Highlights See footnotes on page 17 Earnings Net income available to common stockholders of $42.6 million, or $0.38 per share of common stock Operating Earnings1 of $47.8 million, or $0.43 per diluted share of common stock Net interest income of $63.2 million Dividend Common stock dividend of $0.
Slide 4: Financial Summary
Income Statement ($ in millions, except per share data) 1Q18 1Q17 % Change Net Interest Income $63.2 $57.8 9.4% Net Income Available to Common Stockholders 42.6 37.8 12.7% Weighted Average Common Stock Outstanding 111.9 93.0 20.3% Net Income Available to Common Stockholders per Share $0.38 $0.41 (7.
Slide 5: Q1 Investment Activity
Q1 Investment Activity See footnotes on page 17 1Q18 Investment Summary Outstanding Portfolio Loans Closed 7 Commitments to New Loans $922 Add-on Fundings9 $18 Weighted Average LTV10 54.1% Weighted Average Unlevered All-in-Yield3 8.4% $387 mm net portfolio growth ($ in millions) 12 11 11
Slide 6: Q1 Investment Activity: Summary of New Investments
Q1 Investment Activity See footnotes on page 17 Summary of New Investments £170 million ($236.3 million)13 floating-rate senior loan (all of which was funded at closing) secured by ultra-luxury condominium units in London, U.K. $215.0 million floating-rate first mortgage loan ($36.5 million of which
Slide 7: Loan Position by Net Equity at Amortized Cost
Loan Position by Net Equity at Amortized Cost Commercial Real Estate Loan Portfolio Overview See footnotes on page 17 Loan Position at Amortized Cost ($ in millions) 3/31/2018 12/31/2017 Number of Loans 63 Loans 59 Loans Amortized Cost $4,067 $3,680 Net Equity in Investments at Cost5 $2,885 $2,335 U
Slide 8: Commercial Real Estate Loan Portfolio Overview
Commercial Real Estate Loan Portfolio Overview See footnotes on page 17 Geographic Diversification by Amortized Cost Property Type by Amortized Cost ($’s in millions) 15 16 Pre-development
Slide 9: Senior Loan Portfolio Overview
Senior Loan Portfolio Overview See footnotes on page 17 Weighted Average Yield14 on Loans with Floating Rate – L+5.8% - Weighted Average All-in Yield3 on All Senior Loans – 7.7% 17 18 18 19
Slide 10: Subordinate Loan Portfolio Overview
Subordinate Loan Portfolio Overview See footnotes on page 17 Weighted Average Yield14 on Loans with Floating Rate – L+12.2% - Weighted Average All-in Yield3 on All Subordinate Loans – 13.7% TOTAL PORTFOLIO WEIGHTED AVERAGE: Yield on Loans with Floating Rate14 – L+7.3% - All-in-Yield3 – 9.2% 17 19
Slide 11: Loan Portfolio Maturity Profile
Loan Portfolio Maturity Profile See footnotes on page 17 Fully Extended Loan Maturities and Estimated Future Fundings20,21,22 ($ in millions)
Slide 12: Capital Structure Overview
Secured Debt Arrangements $1.2 Billion L+2.23% Weighted Average Coupon Convertible Notes $600 Million 5.07% Weighted Average Coupon 5.50% notes – convertible to common stock –ratio of 57.6745 ($17.34 effective conversion price) and matures in March 2019 27 4.75% notes – convertible to common stock –
Slide 13: Interest Rate Sensitivity
Interest Rate Sensitivity See footnotes on page 17 Rate Profile of Loan Portfolio20 Net Interest Income Sensitivity to LIBOR29 Net Interest Income per Share Increases with LIBOR Increase
Slide 14: Financials
Financials APOLLO
Slide 15: Consolidated Balance Sheets
Consolidated Balance Sheets (in thousands - except share data) March 31, 2018 December 31, 2017 Assets: Cash $98,310 $77,671 Commercial mortgage loans, net (includes $2,176,126 and $2,148,368 pledged as collateral under secured debt arrangements in 2018 and 2017, respectively) 3,029,240 2,653,826 Su
Slide 16: Consolidated Statements of Operations
Consolidated Statements of Operations (in thousands - except share data and per share data) March 31, 2018 March 31, 2017 Net interest income: Interest income from commercial mortgage loans $52,114 $34,398 Interest income from subordinate loans 33,853 34,390 Interest income from securities 0 6,054 I
Slide 17: Reconciliation of GAAP Net Income to Operating Earnings
Reconciliation of GAAP Net Income to Operating Earnings1 See footnotes on page 17 (in thousands - except share and per share data) Three months ended March 31, 2018 Earnings Per Share (Diluted) March 31, 2017 Earnings Per Share (Diluted) Operating Earnings 1 : Net income available to common stockhol
Slide 18: Footnotes
Footnotes Operating Earnings is a non-GAAP financial measure that is used by the Company to approximate cash available for distribution and is defined by the Company as net income available to common stockholders, computed in accordance with GAAP, adjusted for (i) equity-based compensation expense (
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