Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Q4 2021 Earnings Presentation
20 slides from Apollo Commercial Real Estate Finance's earnings presentation, Feb 9, 2022
Slide 1: Q4 & FY 2021 Financial Results
Exhibit 99.2 A P O L L O C O M M E R C I A L R E A L E S T A T E F I N A N C E , I N C . Q4 & FY 2021 Financial Results February 8, 2022 Information is as of December 31, 2021, except as otherwise noted. It should not be assumed that investments made in the future will be profitable or will equal th
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 2021 Highlights
ARI 2021 Highlights 1,a Strong Distributable Earnings Well-Covered Dividend $1.48 1.1x 1 2 Distributable Earnings per Diluted Share of Common Stock Coverage Ratio for Dividend per Share of Common Stock Robust Originations Activity Durable Balance Sheet $3.2 Billion $1.9 Billion 3 New Mortgage Commit
Slide 4: Summary Results
Summary Results ➢ Net interest income of $59.2 million ➢ Net income available to common stockholders of $34.0 million, or $0.23 per diluted share of common stock Q4 1,a Financial Results ➢ Distributable Earnings of $45.8 million, or $0.32 per diluted share of common stock 4 ➢ Declared a common stock
Slide 5: Portfolio Activity
Portfolio Activity Q4 Portfolio Activity YTD’21 Portfolio Activity ($ in mm) 9 8 8 9 Key Highlights Q4’21 $1.7 billion 100% 5.7% 59% YTD’21 $3.2 billion 5.6% 62% 100% Commitments to Floating Rate Weighted Average Weighted Average a b New Mortgage Loans Mortgages Unlevered All-in Yield Loan-to-Value
Slide 6: Book Value per Share
Book Value per Share 10 Quarterly Book Value per Share 10 Book Value per Share Roll Forward General CECL BVPS excl. General CECL BVPS Allowance & Depreciation Allowance & Depreciation 12/31/2020 $15.08 ($0.30) $15.38 (+) Earnings in excess of dividends $0.08 - $0.08 (+) Net reversal of Specific CECL
Slide 7: Capital Structure Overview
Capital Structure Overview Capital Structure Composition Conservative Capital Management Strategy ($ in mm) Six Secured Debt Counterparties and One Private Securitization Borrowings denominated in USD, GBP, EUR, and SEK a Secured Debt Obligations to reduce currency risk $4,159 (50%) c ~70% Weighted
Slide 8: Loan Portfolio Overview
Loan Portfolio Overview W/A Unlevered All-in Yield on Number of Loans Carrying Value 6,a Loan Portfolio 67 ~$7.9 billion 4.9% W/A Remaining Fully- W/A Portfolio Loan-to- 13 W/A Portfolio Risk Rating 13,16 13,b Extended Term Value 3.1 2.9 Years 60% Collateral Diversification Loan Position 14 c a) Exc
Slide 9: Loan Portfolio Overview (cont'd)
Loan Portfolio Overview (cont’d) ($ in mm) United a 9 New York City Other Europe Southeast Midwest West Other Total Property Type Kingdom Hotel $179 / 2% $145 / 2% $508 / 6% $430 / 5% $61 / 1% $272 / 3% $281 / 4% $1,875 / 24% Office 557 / 7% 515 / 7% 403 / 5% - 226 / 3% - - 1,701 / 22% Residential-f
Slide 10: Q4 Business Update
Q4 Business Update ▪ Committed $1.7 billion ($1.3 billion funded) to new floating rate mortgage loans 5 ▪ Completed $145 million of gross add-on fundings during the quarter ($112 million net of secured credit facility advances) New Loan Commitments Portfolio ▪ $720 million of full loan repayments ac
Slide 11: Q4 Business Update (cont'd)
Q4 Business Update (cont’d) Originations: a a ▪ Committed $167 million ($160 million funded at close) to a floating-rate first mortgage secured by an office portfolio in Milan, Italy. a ▪ Upsize of $106 million to an existing floating-rate first mortgage secured by a portfolio of retail warehouse pr
Slide 12: Senior Loan Portfolio Overview (Page 1 of 2)
Senior Loan Portfolio Overview (Page 1 of 2) ($ in mm) Origination Amortized Unfunded Construction 3rd Party Fully-extended 13, 16 Hotel Date Cost Commitments Loan Subordinate Debt Maturity Location Loan 1 10/2019 $263 $40 8/2024 Y Various, Spain Loan 2 11/2021 221 26 Y 11/2026 Various, UK/Ireland L
Slide 13: Senior Loan Portfolio Overview (Page 2 of 2)
Senior Loan Portfolio Overview (Page 2 of 2) ($ in mm) Origination Amortized Unfunded Construction 3rd Party Fully-extended 13, 16 Residential-for-sale Date Cost Commitments Loan Subordinate Debt Maturity Location Loan 31 12/2021 $180 $57 1/2027 Manhattan, NY Loan 32 12/2018 105 74 Y Y 12/2023 Manha
Slide 14: Subordinate Loan Portfolio Overview
14 Subordinate Loan Portfolio Overview ($ in mm) Origination Amortized Unfunded Construction 3rd Party Fully-extended 13, 16 Residential-for-sale Date Cost Commitments Loan Subordinate Debt Maturity Location a Loan 53 6/2015 $238 $- 3/2022 Y Y Manhattan, NY a, b Loan 54 5/2020 153 - Y Y 3/2022 Manha
Slide 15: Loan Maturities and Future Fundings Profile
Loan Maturities and Future Fundings Profile 16,18,19 Fully-Extended Loan Maturities and Expected Future Fundings by Net Equity ($ in mm) a a 20 Net Interest Income Sensitivity to Benchmark Rates Note: Assumes future financing, in certain cases, against mortgages that are not currently financed a) Ne
Slide 16: Appendix
Appendix APOLLO) | commercial Real Estate Finance 15
Slide 17: Consolidated Balance Sheets
Consolidated Balance Sheets (in thousands - except share data) December 31, 2021 December 31, 2020 f Assets: Cash and cash equivalents $343,106 $325,498 a,b Commercial mortgage loans, net 7,012,312 5,451,084 b Subordinate loans and other lending assets, net 844,948 1,045,893 Real estate owned, net (
Slide 18: Consolidated Statements of Operations
Consolidated Statements of Operations (in thousands - except share and per share data) Three months ended December 31, Year Ended December 31, 2021 2020 2021 2020 Net interest income: Interest income from commercial mortgage loans $85,595 $77,116 $327,702 $309,134 Interest income from subordinate lo
Slide 19: Reconciliation of GAAP Net Income to Distributable Earnings
1 Reconciliation of GAAP Net Income to Distributable Earnings (in thousands - except share and per share data) Three months ended December 31, Year Ended December 31, 1 Distributable Earnings : 2021 2020 2021 2020 Net income available to common stockholders: $34,029 $33,294 $210,551 $4,837 Adjustmen
Slide 20: Footnotes
Footnotes 1. 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 upo
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