Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Investor Presentation (December 2022)
22 slides from Apollo Commercial Real Estate Finance's investor presentation, December 2022
Slide 1: Apollo Commercial Real Estate Finance Investor Presentation
Apollo Commercial Real Estate Finance Investor Presentation December 2022 Unless otherwise noted, information as of September 30, 2022. Confidential and Proprietary - Not for distribution, in whole or in part, without the express written consent of Apollo Global Management, Inc. It should not be ass
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: Apollo Commercial Real Estate Finance
Apollo Commercial Real Estate Finance Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI) is a LEADING COMMERCIAL MORTGAGE REIT focused on originating SENIOR MORTGAGES and SUBORDINATE LOANS collateralized by a variety of property types and geographies throughout the UNITED STATES, the UNITED KING
Slide 4: A History of Success Centered on Four Key Factors
A History of Success Centered on Four Key Factors ARI has a Reputation as an Innovative, Creative Global CRE Debt Provider 1 2 3 4 APOLLO 2 DIFFERENTIATED STABLE AND DIVERSE PRUDENT BALANCE SPONSORSHIP ORIGINATION & ASSET PORTFOLIO SHEET MANAGEMENT MANAGEMENT PLATFORM High-growth global alternativ
Slide 5: Differentiated Origination and Asset Management Platform
Differentiated Origination and Asset Management Platform ARI benefits from being part of Apollo’s global CRE debt franchise GLOBAL ASSET LEADING MANAGER ORIGINATION Market intelligence, asset level PLATFORM insight and information sharing 40 investment professionals in 4 across a global platform wit
Slide 6: Loan Portfolio Overview
Loan Portfolio Overview NUMBER OF LOANS CARRYING VALUE W/A UNLEVERED ALL-IN 6,a YIELD ON LOAN PORTFOLIO 65 ~$8.7 billion 6.5% W/A REMAINING FULLY- W/A PORTFOLIO RISK W/A PORTFOLIO LOAN-TO- EXTENDED TERM 7,8 RATING 7 VALUE 3,7, 3.0 Years 3.1 60% COLLATERAL DIVERSIFICATION LOAN POSITION b 9 a) Exclude
Slide 7: Loan Portfolio Overview (cont'd)
Loan Portfolio Overview (cont’d) United New Other a 10 Property Type Kingdom York City Europe Southeast Midwest West Northeast Other Total Hotel $150 / 2% $146 / 2% $517 / 6% $472 / 5% $62 / 1% $451 / 5% $7 / 0% $179 / 2% $1,983 / 23% Office 418 / 5% 542 / 6% 575 / 7% - 215 / 2% - - - 1,750 / 20% Re
Slide 8: Illustrative Transaction Economics
Illustrative Transaction Economics Returns are consistent across the U.S., the U.K. and Europe U.S. LEVERED FIRST MORTGAGE U.K. & EUROPE LEVERED FIRST MORTGAGE Origination Considerations ~3.80% ~2.18% (3M SONIA)a Benchmark Index 1 Month SOFRa ~1.70% (3M EURIBOR)a 2.80 – 3.80% 1.90% (Avg. 3M SONIA) A
Slide 9: Capital Structure Overview
Capital Structure Overview CAPITAL STRUCTURE COMPOSITION CONSERVATIVE CAPITAL MANAGEMENT STRATEGY ($ in mm) Eight Secured Debt Counterparties and One Private Securitization Two Secured Debt Counterparties added in 2022 Secured Debt Obligationsa,b $5,364 (57%) Borrowings denominated in USD, GBP, EUR,
Slide 10: Well Positioned for Rising Interest Rates
Well Positioned for Rising Interest Rates Predominately floating rate portfolio with low leverage and global geographic diversification NET INTEREST INCOME SENSITIVITY TO BENCHMARK RATES 13,A Benchmark Rates Index 30-Sep 21-Oct USD 1M 3.14% 3.59% SOFR 1M 3.04% 3.60% EURIBOR 1.17% 1.54% SONIA ON 2.19
Slide 11: Mitigating Foreign Exchange Risk
Mitigating Foreign Exchange Risk ARI is well-positioned for declining foreign exchange rates FOREIGN EXCHANGE RATE CHANGE (LOCAL/USD) % FX Change YoY GBP: (17%) EUR: (15%) SEK: (21%) MITIGATING FOREIGN EXCHANGE RISK • Secured debt arrangements are structured in local currency thereby reducing FX exp
Slide 12: Investment Highlights
Investment Highlights 1 Thirteen Year Track Record as an Innovative, Creative Global CRE Debt Provider 2 “First Call Relationships” with Real Estate Sponsors, Brokers and Capital Partners 3 Power of Apollo Sponsorship 4 Stable and Diverse Portfolio 5 Well Positioned for Rising Interest Rates 6 12.0%
Slide 13: Appendix
Appendix Private and Confidential 13
Slide 14: Corporate Responsibility
Corporate Responsibility ARI is committed to responsible investing ARI recognizes the importance of environmental, social and governance (“ESG”) issues and incorporates ESG considerations into investment analysis and decision- making processes. ARI strives to make a positive impact on all of the Com
Slide 15: Consolidated Balance Sheets
Consolidated Balance Sheets (in thousands - except share data) September 30, 2022 December 31, 2021 f Assets: Cash and cash equivalents $319,264 $343,106 Commercial mortgage loans, net a,c 8,013,469 7,012,312 Subordinate loans and other lending assets, net b,c 717,837 844,948 Real estate owned, held
Slide 16: Consolidated Statement of Operations
Consolidated Statement of Operations Three Months Ended Nine Months Ended September (in thousands - except share and per share data) September 30, 30, 2022 2021 2022 2021 Net interest income: Interest income from commercial mortgage loans $120,821 $84,304 $304,631 $242,107 Interest income from subor
Slide 17: Reconciliation of GAAP Net Income to Distributable Earnings
Reconciliation of GAAP Net Income to Distributable Earnings14 Nine Months Ended September (in thousands - except share and per share data) Three Months Ended September 30, 30, Distributable Earnings14: 2022 2021 2022 2021 Net income available to common stockholders: $179,962 $57,266 $260,015 $176,52
Slide 18: Senior Loan Portfolio Overview (Page 1 of 3)
Senior Loan Portfolio Overview (Page 1 of 3) ($ in mm) Origination Amortized Unfunded Construction 3rd Party Fully-extended Hotel Date Cost Commitments Loan Subordinate Debt Maturity 7,8 Location Loan 1 10/2019 $304 $28 Y 08/2024 Various, Spain Loan 2 11/2021 186 20 Y 11/2026 Various, UK/Ireland Loa
Slide 19: Senior Loan Portfolio Overview (Page 2 of 3)
Senior Loan Portfolio Overview (Page 2 of 3) ($ in mm) Origination Amortized Unfunded Construction 3rd Party Fully-extended Retail Date Cost Commitments Loan Subordinate Debt Maturity 7,8 Location Loan 30 04/2022 $417 $34 04/2027 Various, UK Loan 31 10/2021 362 - 10/2026 Various, UK Loan 32 08/2019
Slide 20: Senior Loan Portfolio Overview (Page 3 of 3)
Senior Loan Portfolio Overview (Page 3 of 3) ($ in mm) Origination Amortized Unfunded Construction 3rd Party Fully-extended Other Date Cost Commitments Loan Subordinate Debt Maturity7,8 Location Loan 51 - Parking Garages 05/2021 $270 $5 05/2026 Various, US Loan 52 - Industrial 03/2021 232 - 05/2026
Slide 21: Subordinate Loan Portfolio Overview
Subordinate Loan9 Portfolio Overview ($ in mm) Origination Amortized Unfunded Construction 3rd Party Fully-extended Residential Date Cost Commitments Loan Subordinate Debt Maturity 7,8 Location Loan 56 16 05/2020 $232 - Y 09/2024 Manhattan, NY Loan 57 16 06/2015 187 13 Y 09/2024 Manhattan, NY Loan 5
Slide 22: Footnotes
Footnotes 1. Reflects closing share price on November 29, 2022. 2. Apollo refers to Apollo Global Management, Inc. and its consolidated subsidiaries. 3. Weighted average loan-to-value (“LTV”) reflects the LTV at the time the loan was originated, excluding risk-rated 5 loans. 4. Represents total debt
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