Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Q2 2022 Earnings Presentation
21 slides from Apollo Commercial Real Estate Finance's earnings presentation, Jul 27, 2022
Slide 1: Q2 2022 Financial Results
Q2 2022 Financial Results July 26, 2022 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 Q2 2022 Highlights
ARI Q2 2022 Highlights See footnotes on page 20 Strong Distributable Earnings1 $0.35 Distributable Earnings1 per Diluted Share of Common Stock Durable Balance Sheet $1.7 Billion of Unencumbered Loan Assets2 Robust Originations Activity $1.3 Billion New Mortgage Commitments Closed Well-Positioned for
Slide 4: Q2 Financial Results and Loan Portfolio Summary
Excludes benefit of forward points on currency hedges related to loans denominated in currencies other than USD Excludes loans on non-accrual Includes cash and available leverage on our secured debt arrangements Originations Summary Results See footnotes on page 20 Q2 Financial Results Loan Portfoli
Slide 5: 1H'22 Portfolio Activity
1H’22 Portfolio Activity Key Highlights $1.3 billion $3.1 billion New Commitments to Mortgage Loans Portfolio Activity Q2 Portfolio Activity 7 ($ in mm) See footnotes on page 20 7 Q2’22 1H’22 100% 100% Floating Rate Mortgages 6.9% 6.1% Weighted Average Unlevered All-in Yieldb 58% 53% Weighted Averag
Slide 6: Book Value per Share Roll Forward
Book Value per Share9 Roll Forward Book Value per Share9 Book Value per Share See footnotes on page 20 8 10
Slide 7: Capital Structure Overview
3.0x Debt to Equity Ratio11 $2,136 (23%) Weighted-average rates of applicable benchmark rates and credit spread adjustments plus spreads of USD: +2.11% / GBP: +1.84% / EUR: +1.52% / SEK: +1.50% Reflects book value per share (excluding General CECL Allowance and depreciation) of $15.19 multiplied by
Slide 8: Loan Portfolio Overview
Excludes benefit of forward points on currency hedges related to loans denominated in currencies other than USD Weighted average loan-to-value (“LTV”) reflects the LTV at the time the loan was originated; excludes risk-rated 5 loans Other property types include: Parking Garages (3%), Caravan Parks (
Slide 9: Loan Portfolio Overview (cont'd)
Loan Portfolio Overview (cont’d) ($ in mm) New York City 25% West 7% Midwest 8% Southeast 7% Northeast 5% Note: Map does not show locations where percentages are 2% or lower See footnote on page 20 Italy 5% United Kingdom 27% Spain 4% Germany 5% Sweden 3% b 9,15 Collateral Diversification 8,15 c Oth
Slide 10: Mitigating Foreign Exchange Risk
34% 66% Mitigating Foreign Exchange Risk Weighted average advance based on carrying value of first mortgage loans with secured debt financing Carrying value includes all commercial mortgage and subordinate loans denominated in foreign currencies with or without secured debt financing Represents unre
Slide 11: Q2 Business Update
Q2 Business Update Originations and Add-on Fundings Committed $1.3 billion ($1.1 billion funded) to new floating-rate mortgage loan commitments Completed $2014 million of gross add-on fundings during the quarter a) Other property types include Industrial, Urban Retail, Healthcare and Residential-for
Slide 12: Senior Loan Portfolio Overview (Page 1 of 3)
Includes £20.0 million ($24.4 million converted to USD) subordinate participating interest See footnotes on page 20 Senior Loan Portfolio Overview (Page 1 of 3) 13, 16 a 17
Slide 13: Senior Loan Portfolio Overview (Page 2 of 3)
See footnotes on page 20 Senior Loan Portfolio Overview (Page 2 of 3) 8 Includes portfolio of office, industrial, and retail property types 13, 16 17
Slide 14: Senior Loan Portfolio Overview (Page 3 of 3)
See footnotes on page 20 Senior Loan Portfolio Overview (Page 3 of 3) 8 Includes portfolio of office, industrial, and retail property types 13, 16 9 a 8,15 17
Slide 15: Subordinate Loan Portfolio Overview
Subordinate Loan14 Portfolio Overview Loans are secured by the same property Loan classified as held for sale In the form of a single-asset, single-borrower CMBS See footnotes on page 20 a c a a, 17 13, 16 8, 15 8,15 b 8 8
Slide 16: Net Interest Income Sensitivity and Loan Maturities Profile
Net Interest Income Sensitivity to Benchmark Rates20,b Note: Assumes future financing, in certain cases, against mortgages that are not currently financed Net of expected secured credit facility advances Reflects incremental increases in respective benchmark rates as of June 30, 2022 (USD LIBOR 1 mo
Slide 17: Apollo Commercial Real Estate Finance
APOLLO | Commercial Real estate Finance 6
Slide 18: Consolidated Balance Sheets
(in thousands - except share data) June 30, 2022 December 31, 2021 f Assets: Cash and cash equivalents $241,619 $343,106 Commercial mortgage loans, net a,b 8,176,149 7,012,312 Subordinate loans and other lending assets, net b 753,711 844,948 Subordinate loan, held for sale 7,500 - Assets related to
Slide 19: Consolidated Statements of Operations
(in thousands - except share and per share data) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net interest income: Interest income from commercial mortgage loans $99,386 $82,447 $183,810 $157,803 Interest income from subordinate loans and other lending assets 14,530 31,7
Slide 20: Distributable Earnings Reconciliation
(in thousands - except share and per share data) Three Months Ended June 30, Six Months Ended June 30, Distributable Earnings1: 2022 2021 2022 2021 Net income available to common stockholders: $67,833 $64,306 $80,053 $119,256 Adjustments: Equity-based compensation expense 4,518 4,357 9,216 8,744 Los
Slide 21: 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 — Q2 2022 Earnings Presentation on 6ix