Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Q1 2019 Earnings Presentation
19 slides from Apollo Commercial Real Estate Finance's earnings presentation, Apr 24, 2019
Slide 1: Supplemental Financial Information Q1 2019
Supplemental Financial Information Q1 2019 April 24, 2019 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 18 Financial Results Net income available to common stockholders of $60.9 million, or $0.43 per diluted share of common stock Operating Earnings1 of $68.4 million, or $0.50 per diluted share of common stock Net interest income of $82.8 million Book value per share
Slide 4: Financial Summary: Income Statement and Balance Sheet
Income Statement ($ and shares in mm, except for per share data) 1Q19 1Q18 % Change Net interest income $82.8 $63.2 31.0% Net income available to common stockholders 60.9 42.6 43.0% Diluted weighted average shares of common stock outstanding 164.7 111.9 47.2% Net income per diluted share of common s
Slide 5: Q1 Investment Activity
Q1 Investment Activity See footnotes on page 18 Q1 19 Investment Summary Outstanding Portfolio Loans Closed 4 Commitments to New Loans $449 Add-on Fundings10 $110 Weighted Average Unlevered All-in Yield3 9.8% Weighted Average Loan-to-Value (“LTV”)11 71% ($ in mm) 13 $259 mm net portfolio growth ($ i
Slide 6: Q1 Investment and Repayment Activity
Q1 Investment and Repayment Activity See footnotes on page 18 Summary of New Investments $203.8 million floating-rate senior mortgage loan ($197.0 million of which was funded at closing) for the acquisition and pre-development of an existing ~388,600 square foot industrial facility in Brooklyn, NY $
Slide 7: Loan Position by Invested Net Equity at Amortized Cost
Loan Position by Invested Net Equity at Amortized Cost Commercial Real Estate Loan Portfolio Overview See footnotes on page 18 Loan Position at Amortized Cost ($ in mm) 03/31/2019 12/31/2018 Number of Loans 69 Loans 69 Loans Amortized Cost $5,187 $4,928 Invested Net Equity at Cost5 $3,027 $3,031 Unf
Slide 8: Commercial Real Estate Loan Portfolio Diversification
Commercial Real Estate Loan Portfolio Diversification See footnotes on page 18 Geographic Diversification by Amortized Cost ($ in mm) 15 16 Property Type by Amortized Cost 15
Slide 9: Senior Loan Portfolio Overview
Weighted Average Yield on Senior Loans with Floating Rate – L+5.3% - Weighted Average All-in Yield3 on Senior Loans – 7.8% Senior Loan Portfolio Overview See footnotes on page 18 ($ in mm) 18 19 18 18 12 17
Slide 10: Subordinate Loan Portfolio Overview
Subordinate Loan Portfolio Overview See footnotes on page 18 Weighted Average Yield on Subordinate Loans with Floating Rate – L+12.4% - Weighted Average All-in Yield3 on Subordinate Loans – 14.3% TOTAL PORTFOLIO WEIGHTED AVERAGE: Yield on Loans with Floating Rate – L+6.9% - All-in Yield3 – 9.3% ($ i
Slide 11: Loan Portfolio Maturity Profile
Loan Portfolio Maturity Profile See footnotes on page 18 Fully Extended Loan Maturities and Estimated Future Fundings21,22,23 ($ in mm)
Slide 12: Capital Structure Overview
Capital Structure Overview See footnotes on page 18 Debt to Equity Ratio7: 1.0x Fixed Charge Coverage8: 2.5x ~$5.6 Billion Total Capitalization Capital Structure Detail Capital Structure Composition ($ in millions, except per share data) Amount ($, except share data) Credit Facilities Capacity W.A.
Slide 13: Unallocated Credit and Liquidity
Unallocated Credit See footnotes on page 18 27 Liquidity ($ in mm) Cash Approved and Undrawn Credit Capacity Total Available Capital Total Potential Liquidity
Slide 14: Interest Rate Sensitivity
Interest Rate Sensitivity See footnotes on page 18 Rate Profile of Loan Portfolio21 Net Interest Income Sensitivity to USD LIBOR28 LIBOR floors partially offset impact from decline in USD LIBOR Increasing LIBOR increases earnings
Slide 15: Financials
Financials APOLLO | commercial Real Estate Finance
Slide 16: Consolidated Balance Sheet
(in thousands - except share data) March 31, 2019 December 31, 2018 Assets: Cash and cash equivalents $109,343 $109,806 Commercial mortgage loans, net (includes $3,679,993 and $3,197,900 pledged as collateral under secured debt arrangements in 2019 and 2018, respectively) 4,003,089 3,878,981 Subordi
Slide 17: Consolidated Statement of Operations
(in thousands - except share data and per share data) Three months ended March 31, 2019 March 31, 2018 Net interest income: Interest income from commercial mortgage loans $78,286 $52,114 Interest income from subordinate loans 40,839 33,853 Interest expense (36,295 ) (22,740 ) Net interest income $82
Slide 18: Operating Earnings Reconciliation
(in thousands - except share and per share data) Three months ended Operating Earnings1: March 31, 2019 March 31, 2018 Net income available to common stockholders $60,923 $42,598 Adjustments: Equity-based compensation expense 3,901 3,342 Loss on derivative instruments 6,720 11,032 Foreign currency g
Slide 19: Footnotes
Footnotes 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 final vesting and settlement of awards shoul
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