Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — FY2020 Earnings Presentation
19 slides from Apollo Commercial Real Estate Finance's earnings presentation, Feb 10, 2021
Slide 1: Q4 & FY 2020 Financial Results
Q4 & FY 2020 Financial Results February 10, 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 2020 Highlights
ARI 2020 Highlights See footnotes on page 18 Financial Performance $1.51 Distributable Earnings per Share of Common Stock1,a Well-Covered Dividend 1.04x Coverage Ratio for Dividend per Share of Common Stock2 Conservative Balance Sheet $344 Million Substantial Liquidity as of December 31, 2020b Prude
Slide 4: Q4 Summary Results
Q4 Summary Results Financial Results Net interest income of $65 million Net income available to common stockholders of $33 million, or $0.23 per diluted share of common stock Distributable Earnings, prior to realized loss on investments1,a of $51 million, or $0.36 per diluted share of common stock S
Slide 5: Q4 Summary Results (cont'd)
Q4 Summary Results (cont’d) Loan Portfolio $6.5 billion portfolio with w/a unlevered all-in yield4,a of 6.3% 84% first mortgages 89% of U.S. floating-rate loans have in-the-money LIBOR floors with a w/a of 1.46%b Sold $133 million of loans and participating interests at 98.1% of par in Q4 $634 milli
Slide 6: Book Value per Share Growth
Book Value per Share7 Growth Growth in Book Value per Share See footnotes on page 18 Book Value per Share7 Roll Forward (since 3/31/20) 8
Slide 7: Capital Structure Overview
Capital Structure Overview See footnotes on page 18 ($ in mm) Secured Debt Obligationsa Common Equity Book Valueb Convertible Notes Term Loan B Preferred Stock $3,450 (51%) $493 (7%) $575 (8%) $169 (3%) Prudent Management of ARI’s Balance Sheet Results in Low Leverage and Diverse Capital Sources Cap
Slide 8: Loan Portfolio Overview
Loan Portfolio Overview See footnotes on page 18 Diversified Loan Portfolio Secured by Predominately Institutional Properties in Global Gateway Cities Collateral Diversification c Loan Position W/A Unlevered All-in Yield on Loan Portfolio4,a 6.3% W/A Remaining Fully-Extended Term11 2.8 Years W/A Por
Slide 9: Loan Portfolio Overview (cont'd)
Loan Portfolio Overview (cont’d) See footnotes on page 18 ($ in mm) b a 8, 13 New York City 36% West 11% Midwest 9% Southeast 9% Southwest 3% Northeast 2% Geographically Diverse Note: Map does not show locations where percentages are 1% or lower Italy 2% United Kingdom 19% Spain 4% Germany 3% 8 Othe
Slide 10: Senior Loan Portfolio Overview
See footnotes on page 18 Senior Loan Portfolio Overview (Page 1 of 2) ($ in mm) 11, 14 Includes £6.7 million ($9.2 million converted to USD) subordinate participating interest a
Slide 11: Senior Loan Portfolio Overview
See footnotes on page 18 Senior Loan Portfolio Overview (Page 2 of 2) ($ in mm) 11, 14 15 15 15 8
Slide 12: Subordinate Loan Portfolio Overview
Subordinate Loan12 Portfolio Overview Includes $25.8 million subordinate participating interest In the form of a single-asset, single-borrower CMBS ($ in mm) See footnotes on page 18 17, b b 16 8, 13 11, 14 15 a 17 16 8
Slide 13: Q4 Business Update
Q4 Business Update Subsequent Events Committed £165 million of a £1,800 million floating-rate mortgage to finance the acquisition of a leading provider of short-stay affordable caravan / holiday home ownership in the U.K. Board of directors approved $150 million increase to share repurchase plan, br
Slide 14: Loan Maturities and Future Fundings Profile
Loan Maturities and Future Fundings Profile See footnotes on page 18 Fully-Extended Loan Maturities and Expected Future Fundings by Net Equity14, 18, 19 ($ in mm) Note: Assumes future financing, in certain cases, against first mortgages that are not currently financed Reflects the remaining expected
Slide 15: Apollo Commercial Real Estate Finance
APOLLO | commercial Real Estate Finance 4
Slide 16: Consolidated Balance Sheets
(in thousands - except share data) December 31, 2020 December 31, 2019 f Assets: Cash and cash equivalents $325,498 $452,282 Commercial mortgage loans, net a,b 5,451,084 5,326,967 Subordinate loans and other lending assets, net b 1,045,893 1,048,126 Other assets 74,640 60,988 Real estate owned, held
Slide 17: Consolidated Statements of Operations
(in thousands - except share and per share data) Three months ended December 31, Year Ended December 31, 2020 2019 2020 2019 Net interest income: Interest income from commercial mortgage loans $77,116 $85,595 $309,134 $322,475 Interest income from subordinate loans and other lending assets 22,944 39
Slide 18: Distributable Earnings Reconciliation
(in thousands - except share and per share data) Three months ended December 31, Year Ended December 31, Distributable Earnings1: 2020 2019 2020 2019 Net income (loss) available to common stockholders: $33,294 $68,517 $4,837 $211,649 Adjustments: Equity-based compensation expense 4,089 3,813 16,815
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
Apollo Commercial Real Estate Finance — FY2020 Earnings Presentation on 6ix