Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Q2 2021 Earnings Presentation
19 slides from Apollo Commercial Real Estate Finance's earnings presentation, Jul 27, 2021
Slide 1: Q2 2021 Financial Results
Q2 2021 Financial Results July 26, 2021 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 2021 Highlights
ARI Q2 2021 Highlights See footnotes on page 18 Strong Distributable Earnings1,a $0.41 ($0.81 1H’21) Distributable Earnings1 per Diluted Share of Common Stock Durable Balance Sheet $2.0 Billion of Unencumbered Loan Assets3 Robust Originations Activity $825 Million ($1.4 Billion 1H’21) New Mortgage C
Slide 4: Q2 Summary: Originations, Results, Capitalization, Loan Portfolio
Issued $500 million of 4.625% eight-year Senior Secured Notes; used proceeds to unencumber assets and general corporate purposes The transaction was upsized by $100 million from launch and was ARI’s debut offering in the senior secured notes market Ended quarter with $227 million of total liquidity,
Slide 5: Key Highlights: Portfolio Activity
Key Highlights $825 million $1.4 billion Commitments to New Mortgage Loans Portfolio Activity Q2 Portfolio Activity 7 ($ in mm) Includes benefit of forward points on currency hedges related to loans denominated in currencies other than USD; Weighted Average Unlevered All-in Yield is based on the app
Slide 6: Book Value per Share Roll Forward
Book Value per Share8 Roll Forward 1H’21 Quarterly Book Value per Share8 Book Value per Share See footnotes on page 18 9
Slide 7: Capital Structure Overview
Capital Structure Overview See footnotes on page 18 ($ in mm) Secured Debt Obligationsa Common Equity Book Valueb Convertible Notes Preferred Stock $3,690 (47%) $575 (7%) $169 (2%) Prudent Management of ARI’s Balance Sheet Results in Low Leverage and Diverse Capital Sources Capital Structure Composi
Slide 8: Loan Portfolio Overview
Loan Portfolio Overview See footnotes on page 18 Diversified Loan Portfolio Secured by Predominately Institutional Properties in Global Gateway Cities Collateral Diversification Loan Position W/A Unlevered All-in Yield on Loan Portfolio6,a 5.5% W/A Remaining Fully-Extended Term12 2.8 Years W/A Portf
Slide 9: Loan Portfolio Overview (cont'd)
Loan Portfolio Overview (cont’d) See footnotes on page 18 ($ in mm) a 9, 14 New York City 31% West 7% Midwest 10% Southeast 9% Southwest 2% Northeast 2% Geographic Diversity Note: Map does not show locations where percentages are 1% or lower Italy 2% United Kingdom 22% Spain 4% Germany 7% 8 Other ge
Slide 10: Q2 Business Update
Q2 Business Update Summary of Repayments and Sales $262 million of full loan repayments: $118b million repayment of a floating-rate subordinate loan secured by a residential for-sale inventory property located in Manhattan $81 million repayment of a fixed-rate subordinate loan secured by a residenti
Slide 11: Senior Loan Portfolio Overview (Page 1 of 2)
See footnotes on page 18 Senior Loan Portfolio Overview (Page 1 of 2) ($ in mm) 12, 15 Includes £20.0 million ($27.7 million converted to USD) subordinate participating interest a
Slide 12: Senior Loan Portfolio Overview (Page 2 of 2)
See footnotes on page 18 Senior Loan Portfolio Overview (Page 2 of 2) ($ in mm) 16 16 16 8 12, 15 Includes portfolio of office, industrial, retail, and other property types a
Slide 13: Subordinate Loan Portfolio Overview
Subordinate Loan13 Portfolio Overview Loans are secured by the same property. Previously disclosed as one loan. Loan and single-asset, single-borrower CMBS are secured by the same properties. In the form of a single-asset, single-borrower CMBS See footnotes on page 18 c, d a d c a, b ($ in mm) a, b
Slide 14: Loan Maturities and Future Fundings Profile
Loan Maturities and Future Fundings Profile See footnotes on page 18 Fully-Extended Loan Maturities and Expected Future Fundings by Net Equity15, 17, 18 ($ in mm) Note: Assumes future financing, in certain cases, against mortgages that are not currently financed Net of expected secured credit facili
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, 2021 December 31, 2020 f Assets: Cash and cash equivalents $204,581 $325,498 Commercial mortgage loans, net a,b 6,653,197 5,451,084 Subordinate loans and other lending assets, net b 866,908 1,045,893 Real estate owned, net (Net of $452 accumulated deprecia
Slide 17: Consolidated Statements of Operations
(in thousands - except share and per share data) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net interest income: Interest income from commercial mortgage loans $82,447 $75,641 $157,803 $157,496 Interest income from subordinate loans and other lending assets 31,775 32,6
Slide 18: Distributable Earnings Reconciliation
(in thousands - except share and per share data) Three Months Ended June 30, Six Months Ended June 30, Distributable Earnings1: 2021 2020 2021 2020 Net income (loss) available to common stockholders: $64,306 $56,816 $119,256 ($74,411 ) Adjustments: Equity-based compensation expense 4,357 4,252 8,744
Slide 19: 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
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