Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Q3 2019 Earnings Presentation
20 slides from Apollo Commercial Real Estate Finance's earnings presentation, Oct 24, 2019
Slide 1: Supplemental Financial Information Q3 2019
Exhibit 99.2 A POLLO COMMERCIAL REAL ESTA TE FINA NCE, INC. Supplemental Financial Information Q3 2019 October 23, 2019 Information is as of September 30, 2019, except as otherwise noted. It should not be assumed that investments made in the future will be profitable or will equal the performance of
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: Q3 Highlights
Q3 Highlights • Net income available to common stockholders of $25.7 million, or $0.16 per diluted share of common stock 1 • Operating Earnings of $72.6 million, or $0.47 per diluted share of common stock Financial Results • Net interest income of $85.2 million • Book value per share of common stock
Slide 4: Financial Summary
Financial Summary Income Statement Three months ended Nine months ended ($ and shares in mm, except for per share data) 9/30/2019 9/ 30/ 2018 % Ch ang e 9/30/ 2019 9/ 30/2018 % C hang e Net interest income $85.2 $77.5 9.9% $253.0 $211.5 19.6% Net income available to common stockholders 25.7 55.4 (53
Slide 5: Q3 Investment Activity
Q3 Investment Activity Q3 19 Investment Summary Outstanding Portfolio (QTD) ($ in mm) Unfunded 12 15 Commitment Add-on Unfunded 14 Funding 15 Commitment $126 $1,073 ($60) ($353) $1,192 $958 New Loans ($ in mm) $6,115 $5,444 Loans Closed 8 Commitments to New Loans $958 3 Weighted Average Unlevered Al
Slide 6: YTD Investment Activity
YTD Investment Activity YTD Investment Summary Outstanding Portfolio (YTD) ($ in mm) Unfunded Add-on 12 15 Commitment 17 Funding $290 Unfunded $1,073 ($31) ($843) 15 Commitment $1,771 $1,096 New Loans $6,115 ($ in mm) $4,928 Loans Closed 17 Commitments to New Loans $1,965 3 Weighted Average Unlevere
Slide 7: Q3 Investment and Repayment Activity
Q3 Investment and Repayment Activity Summary of New Investments • $470.8 million of a $807.5 million floating-rate whole loan (all of which was funded at closing) consisting of a $318.1 million mortgage loan, a $30.3 million senior mezzanine loan and a $122.4 million junior mezzanine loan secured by
Slide 8: Commercial Real Estate Loan Portfolio Overview
Commercial Real Estate Loan Portfolio Overview Loan Position at Amortized Cost Loan Position by Invested Net Equity at Amortized Cost 12 ($ in mm) 9/30/2019 6/30/2019 Number of Loans 74 Loans 71 Loans Amortized Cost $6,115 $5,444 6 Invested Net Equity at Cost $3,555 $3,643 15 Unfunded Loan Commitmen
Slide 9: Commercial Real Estate Loan Portfolio Diversification
Commercial Real Estate Loan Portfolio Diversification Geographic Diversification by Amortized Cost Property Type by Amortized Cost 2% 1% 2% 2% 3% 2% 1% 3% 2% 2% 4% 26% 7% 5% 37% 7% 9% 10% 10% 23% 6% 12% 14% 10% Hotel Office Manhattan, NY United Kingdom West Residential-for-sale: construction Residen
Slide 10: Senior Loan Portfolio Overview
Senior Loan Portfolio Overview ($ in mm) Origination Amortized Unfunded Construction Fully-extended 15 21 Property Type Risk rating Date Cost Commitments Loan Maturity Location Urban Retail 3 8/2019 $315 - 9/2024 Manhattan, NY Hotel 3 9/2016 210 - 1/2022 Manhattan, NY Urban Predevelopment 3 4/2017 1
Slide 11: Subordinate Loan Portfolio Overview
12 Subordinate Loan Portfolio Overview Origination Amortized Unfunded Construction Fully-extended ($ in mm) 15 21 Property Type Risk rating Date Cost Commitments Loan Maturity Location 24 Residential-for-sale: construction 3 6/2015 $203 - Y 2/2021 Manhattan, NY Urban Retail 3 8/2019 121 - 9/2024 Man
Slide 12: Loan Portfolio Maturity Profile
Loan Portfolio Maturity Profile 25,26,27 ($ in mm) Fully Extended Loan Maturities and Estimated Future Fundings $1,884 $1,595 $1,215 $985 $705 $542 $311 $284 $260 $241 $218 $50 $20 $11 $13 $6 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Fully Extended Maturity Future Funding See footnotes on pa
Slide 13: Capital Structure Overview
Capital Structure Overview ~$6.7 Billion Total Capitalization Capital Structure Composition Capital Structure Detail ($ in mm) ($ in mm, except per share data) $169 $500 W.A. 28 Amount Credit Facilities Capacity W.A. Rate Maturity $575 USD L+2.09% / Five 2 $3,535 $2,559 GBP L+2.31% / Jul 2022 29 Cou
Slide 14: Liquidity
Liquidity ($ in mm) 31 Approved and Cash Total Available Total Potential Unallocated Undrawn Credit Capital Liquidity 33 Credit 32 Capacity See footnotes on page 19 13Liquidity ($ in mm) 31 Approved and Cash Total Available Total Potential Unallocated Undrawn Credit Capital Liquidity 33 Credit 32 Ca
Slide 15: Interest Rate Sensitivity
Interest Rate Sensitivity 25 34 Net Interest Income Sensitivity to USD LIBOR Rate Profile of Loan Portfolio LIBOR floors partially offset Increasing LIBOR impact from decline in USD LIBOR increases earnings See footnotes on page 19 14Interest Rate Sensitivity 25 34 Net Interest Income Sensitivity to
Slide 16: Financials
Financials APOLLO | commercial Real Estate Finance
Slide 17: Consolidated Balance Sheets
Consolidated Balance Sheets (in thousands - except share data) September 30, 2019 December 31, 2018 Assets: Cash and cash equivalents $160,934 $109,806 Commercial mortgage loans, net (includes $4,118,926 and $3,197,900 pledged as collateral under secured debt arrangements in 2019 and 2018, respectiv
Slide 18: Consolidated Statements of Operations
Consolidated Statements of Operations (in thousands - except share data and per share data) Three months ended Nine months ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Net interest income: Interest income from commercial mortgage loans $81,136 $71,179 $236,880 $1
Slide 19: Reconciliation of GAAP Net Income to Operating Earnings
1 Reconciliation of GAAP Net Income to Operating Earnings (in thousands - except share and per share data) Three months ended Nine months ended September 30, September 30, September 30, September 30, 1 Operating Earnings : 2019 2018 2019 2018 Net income available to common stockholders $25,704 $55,3
Slide 20: Footnotes
Footnotes 1. 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 final vesting and settlement of awards sh
Apollo Commercial Real Estate Finance — Q3 2019 Earnings Presentation on 6ix