Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Q2 2020 Earnings Presentation
19 slides from Apollo Commercial Real Estate Finance's earnings presentation, Jul 31, 2020
Slide 1: Q2 2020 Financial Results
Q2 2020 Financial Results July 30, 2020 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: Liquidity Summary and Results
Liquidity Summary Results See footnotes on page 18 Excludes benefit of forward points on currency hedges related to loans denominated in currencies other than USD $511 million Current Liquidity Financial Results Capitalization Loan Portfolio 1.7x Debt-to-Equity Ratio1 $1.0 billion Current Unencumber
Slide 4: Income Statement and Financial Summary
Income Statement ($ and shares in millions, except for per share data) Net interest income Net income available to common stockholders Net income per diluted share of common stock5 Operating Earnings3 excluding realized loss on investments and interest rate swap Operating Earnings3 excluding realize
Slide 5: Business Update and Portfolio Update
Excludes loans on non-accrual Conversion to USD on date of funding Assuming 1-Month LIBOR is held at current levels Business Update Portfolio Update Strong second quarter collections of interest payments due (99.8%a received) with July expected to be 99.8%a Completed $112.0 million of add-on funding
Slide 6: Capital Structure Overview
Capital Structure Overview See footnotes on page 18 Capital Structure Detail Capital Structure Composition ($ in mm) $2,243 $3,440 $495 $575 $169 10 11 9 12 ~65% W.A. Advance Rate Across Secured Debt Obligations 1.7x Debt to Equity Ratio1 2.3x Fixed Charge Coverage7 Secured Debt Obligations Common E
Slide 7: Liquidity
See footnotes on page 18 Liquidity ($ in mm) Cash on hand Approved & Undrawn Credit Capacity Represents amounts approved and undrawn under secured credit facilities. While these amounts were previously contractually approved and/or drawn, in certain cases, the lender’s consent is required for us to
Slide 8: Q2 Repayment Activity & Subsequent Events
Q2 Repayment Activity & Subsequent Events See footnotes on page 18 Summary of Repayments and Sales Subsequent Events £36.8 million ($45.4 million)14 repayment of a floating-rate mortgage loan secured by a multifamily property in London, UK Sold three construction loans to entities managed by affilia
Slide 9: Loan Portfolio Overview
($ in mm) 6/30/2020 3/31/2020 Number of Loans 71 Loans 75 Loans Total Investments, net $6,388 $6,431 Invested Net Equity, at Cost16 $2,948 $2,874 Weighted Average Unlevered All-in Yield on Loan Portfolio4,a 6.7% 6.7% Weighted Average Remaining Fully-Extended Term13 3.1 Years 3.3 Years Weighted Avera
Slide 10: Loan Portfolio Diversification
New York City 37% West 11% Midwest 9% Southeast 8% Southwest 3% Northeast 2% Loan Portfolio Diversification See footnotes on page 18 ($ in mm) 12 Other US includes the following geographies: Southwest (3%), Northeast (2%), and Mid-Atlantic (1%) Other property types include the following property typ
Slide 11: Senior Loan Portfolio Overview (Page 1 of 2)
See footnotes on page 18 Senior Loan Portfolio Overview (Page 1 of 2) ($ in mm) 17 10, 13
Slide 12: Senior Loan Portfolio Overview (Page 2 of 2)
See footnotes on page 18 Senior Loan Portfolio Overview (Page 2 of 2) ($ in mm) 10, 13 17 17 17 12 17 Loan was sold subsequent to quarter end a
Slide 13: Subordinate Loan Portfolio Overview
Subordinate Loan15 Portfolio Overview In the form of a single-asset, single-borrower CMBS Refinanced into a mortgage loan subsequent to quarter end ($ in mm) See footnotes on page 18 17 a a 18 18 12 12 10, 13 12 b
Slide 14: Future Fundings and Maturities Profile
Future Fundings and Maturities Profile See footnotes on page 18 Fully Extended Loan Maturities10 ($ in mm) Expected Future Fundings12,19 Rest of Year Net Future Funding Roll Forward (as of July 30th)a Expected future fundings after 2020: 2021: ~$688 million in gross future fundings (98% Mortgage / 2
Slide 15: Apollo Commercial Real Estate Finance
APOLLO | commercial Real Estate Finance 4
Slide 16: Consolidated Balance Sheet
(in thousands - except share data) June 30, 2020 December 31, 2019 f Assets: Cash and cash equivalents $487,165 $452,282 Commercial mortgage loans, net a,b 5,343,437 5,326,967 Subordinate loans and other lending assets, net b 1,044,400 1,048,126 Derivative assets, net 49,294 — Other assets 45,218 52
Slide 17: Consolidated Statement of Operations
(in thousands - except share and per share data) Three months ended Six months ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Net interest income: Interest income from commercial mortgage loans $75,641 $77,458 $157,496 $155,744 Interest income from subordinate loans and other lending
Slide 18: Operating Earnings Reconciliation
(in thousands - except share and per share data) Three months ended Six months ended Operating Earnings3: June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Net income (loss) available to common stockholders: $56,816 $56,505 ($74,411 ) $117,428 Adjustments: Equity-based compensation expense 4,2
Slide 19: Footnotes
Footnotes Represents total debt, less cash and loan proceeds held by servicer divided by total stockholders' equity, adjusted to add back the General CECL Allowance in line with our covenants. Represents loan assets with no asset-specific financing. Pursuant to our Term Loan B agreement, we are requ
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