Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Q4 2024 Earnings Presentation
22 slides from Apollo Commercial Real Estate Finance's earnings presentation, Feb 11, 2025
Slide 1: Q4 & FY 2024 Financial Results
Q4 & FY 2024 Financial Results Apollo Commercial Real Estate Finance, Inc. February 10, 2025 Unless otherwise noted, information as of December 31, 2024 It should not be assumed that investments made in the future will be profitable or will equal the performance of the investments shown in this docu
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: Summary Results
Summary Results Net loss available to common stockholders of ($132) million, or ($0.97) per diluted share of common stock for 2024; Net income available to common stockholders of $38 million, or $0.27 per diluted share of common stock for Q4 Financial Results Distributable Earnings1,(a) of $190
Slide 4: Per Share Overview
Per Share Overview Distributable Earnings per Share1,6,(a) Book Value per Share7,(b) $13.59 $13.62 $0.35 $0.35 $(0.05) $0.25 $0.37 $0.42 $12.77 $0.25 $12.73 $(0.93) $0.43 $0.43 $13.22 $13.20 $12.30 $12.34 1Q'24 2Q'24 3Q'24 4Q'24 1Q'24 2Q'24 3Q'24 4Q'24 1,6,(a) Distributable Earnings per Share BV
Slide 5: Portfolio Activity & REO Overview
Portfolio Activity & REO Overview Q4 Portfolio Activity4 2024 Portfolio Activity4 ($ in mm) ($ in mm) Add-on Add-on Funding5 Funding 5 $627 $97 $1,286 ($2,542) ($289) ($150) ($128) ($830) $6 New ($133) ($173) New Funding Funding $330 $7,831 $8,358 $7,145 $7,145 8 (b) 3Q24 Fundings Repayments FX Othe
Slide 6: Q4'24 Loan Origination Highlights
Q4’24 Loan Origination Highlights Asset Photos Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Floating-Rate Senior Loan Loan Size(a) $104 million $87 million $389 million(b) Location Various, US Midwest United Kingdom 986K Sq Ft Three-Property, 1,948 Bed 575-Key Collateral Portfolio o
Slide 7: 2024 Loan Origination Overview
2024 Loan Origination Overview Key Highlights $1.8 billion 100% 8.8% 56% New Commitments Floating Rate Weighted Average Weighted Average Closed First Mortgages Unlevered All-in Yield3 Loan-to-Value(a) Property Type(b) Location(b) Office Other (d) Midwest 3% 7% 5% Industrial Mid-Atlantic 14% 5% (c) R
Slide 8: Loan Portfolio Overview
Loan Portfolio Overview Carrying Value/ W/A Unlevered All-in Yield Loan Position10 Number of Loans on Loan Portfolio3,10,(a) $7.1 billion/45 Loans 95% First Mortgage 8.1% W/A Remaining Fully-Extended W/A Portfolio Risk Rating10 W/A Portfolio Loan-to-Value(b) Term10,11 2.5 Years 3.0 57% Collateral Di
Slide 9: Loan Portfolio Overview (cont'd)
Loan Portfolio Overview (cont’d) ($ in mm) United New Other Property Type Kingdom York City Europe Midwest Southeast West Other (d) Total8 Office $634 / 9% $482 / 7% $468 / 7% $173 / 2% - - - $1,757 / 25% Hotel 7 / 0% 246 / 3% 496 / 7% 141 / 2% 354 / 5% 212 / 3% 120 / 2% 1,575 / 22% (a) Residential
Slide 10: Office Loan Portfolio Overview
Office Loan Portfolio Overview Number of Loans(a) Carrying Value First Mortgage10 W/A Loan-to-Value(b) 10 Loans $1.8 Billion 100% 50% Loans with 3rd Party Largest commitment 100% W/A Risk Rating10 Subordinate Debt leased to credit tenant(c) 2.9 3 Loans $690 million Origination Vintage10 Location10 F
Slide 11: Senior Loan Portfolio (1 of 2)
Senior Loan Portfolio (1 of 2) ($ in mm) Property Origination Amortized Unfunded Construction 3rd Party Fully-extended 11 Office Type Date Cost Commitments Loan Subordinate Debt Maturity Location (a) London, UK Loan 1 Office 02/2022 $463 $223 Y 12/2028 Loan 2 Office 03/2022 256 11 Y 04/2027 Manhatta
Slide 12: Senior Loan Portfolio (2 of 3)
Senior Loan Portfolio (2 of 3) Property Origination Amortized Unfunded Construction 3rd Party Fully-extended 11 Residential Type Date Cost Commitments Loan Subordinate Debt Maturity Location Loan 20 Residential 12/2021 $226 $11 12/2026 Various, UK Loan 21 Residential 07/2024 187 - 07/2029 Various, U
Slide 13: Senior Loan Portfolio (3 of 3)
Senior Loan Portfolio (3 of 3) Property Origination Amortized Unfunded Construction 3rd Party Fully-extended 11 Mixed Use Type Date Cost Commitments Loan Subordinate Debt Maturity Location Loan 34 Mixed Use 12/2019 $209 - Y 11/2025 London, UK Loan 35 Mixed Use 03/2022 154 24 Y 03/2027 Brooklyn, NY S
Slide 14: Subordinate Loan & Other Lending Assets Portfolio
Subordinate Loan & Other Lending Assets Portfolio ($ in mm) Property Origination Amortized Unfunded Construction 3rd Party Fully-extended Type Date Cost Commitments Loan Subordinate Debt Maturity 11 Location 14 Manhattan, NY Loan 42 Residential 06/2015 $288 - 11/2025 14 Loan 43 Residential 08/2022 7
Slide 15: Capital Structure Overview
Capital Structure Overview Capital Structure Composition Conservative Capital Management Strategy ($ in mm) No Corporate Debt ~70% W/A Available Advance Maturities until May 2026 Rate(e) Secured Debt Arrangements(a),(b),(c) 3.2x Debt to Equity Ratio15 1.3x Fixed Charge Coverage16 $4,824 (58%) Corpor
Slide 16: Mitigating Foreign Exchange Risk
Mitigating Foreign Exchange Risk We have taken several risk mitigating steps to structure and fund our non-US loan portfolio and associated secured financing facilities to position ARI for fluctuating foreign exchange rates Foreign Exchange Rate Change (Local/USD) 1.27x 1.26x 1.26x 1.34x 1.25x % FX
Slide 17: Loan Maturities and Future Funding Profile
Loan Maturities and Future Funding Profile Fully-Extended Loan Maturities and Expected Future Fundings by Net Equity4,11,17,18 ($ in mm) $577 $507 $448 $389 $408 $65 $0 $17 $1 $0 2025 2026 2027 2028 2029 & Beyond (a) Fully-Extended Maturities (Net Equity)(a) Expected Net Future Fundings Net Interest
Slide 18: Appendix
Appendix - Consolidated Balance Sheets - Consolidated Statement of Operations - Reconciliation of GAAP Net Income to Distributable Earnings 18
Slide 19: Consolidated Balance Sheets
Consolidated Balance Sheets ($ in thousands - except share data) December 31, 2024 December 31, 2023 Assets: Cash and cash equivalents $317,396 $225,438 Commercial mortgage loans, net (a)(c) 6,715,347 7,925,359 Subordinate loans, net (b)(c) 388,809 432,734 Real estate owned, held for investment, net
Slide 20: Consolidated Statement of Operations
Consolidated Statement of Operations ($ in thousands - except share and per share data) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Net interest income: Interest income from commercial mortgage loans $156,364 $180,290 $699,389 $701,002 Interest income from subordinate
Slide 21: Reconciliation of GAAP Net Income to Distributable Earnings
Reconciliation of GAAP Net Income to Distributable Earnings1 ($ in thousands - except share and per share data) Three Months Ended December 31, Year Ended December 31, Distributable Earnings1 : 2024 2023 2024 2023 Net income (loss) available to common stockholders: $37,584 $43,472 ($131,908) $45,855
Slide 22: Footnotes
Footnotes 1. Distributable 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 award
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