Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Q1 2016 Earnings Presentation
20 slides from Apollo Commercial Real Estate Finance's earnings presentation, Apr 27, 2016
Slide 1: Supplemental Financial Information Package – Q1 2016
Information is as of March 31, 2016, except as otherwise noted. It should not be assumed that investments made in the future will be profitable or will equal the performance of investments in this document. Supplemental Financial Information Package – Q1 2016 April 27, 2016 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 Q1 2016 Earnings Call
ARI Q1 2016 Earnings Call April 27, 2016 Stuart Rothstein Chief Executive Officer and President Scott Weiner Chief Investment Officer of the Manager Megan Gaul Chief Financial Officer, Treasurer and Secretary Hilary Ginsberg Investor Relations Manager
Slide 4: Financial Summary
Financial Summary Operating Earnings is a non-GAAP financial measure that is used by the Company to approximate cash available for distribution and is defined by the Company as net income available to common stockholders, computed in accordance with GAAP, adjusted for (i) equity-based compensation e
Slide 5: Historical Financial Overview
Historical Financial Overview Operating Earnings ($000s) (1) Net Interest Income ($000s) Dividends per Share of Common Stock Operating Earnings per Share of Common Stock(1) Operating Earnings is a non-GAAP financial measure that is used by the Company to approximate cash available for distribution a
Slide 6: Q1 Financial Highlights
Q1 Financial Highlights Financial Results & Earnings Per Share Operating Earnings for the quarter ended March 31, 2016 of $29.8 million, or $0.44 per diluted share of common stock(1); Excluding $5.1 million of expenses in connection with the proposed acquisition of Apollo Residential Mortgage, Inc.
Slide 7: Q1 – New Investments and Funding
Q1 – New Investments and Funding Summary of New Investments Based upon committed amount of loan. The Internal Rate of Return (“IRR”) for the investments shown in this presentation reflect the returns underwritten by ACREFI Management, LLC, the Company’s external manager (the “Manager”), taking into
Slide 8: Commercial Real Estate Debt Portfolio Overview
Commercial Real Estate Debt Portfolio Overview CMBS includes $55.8 million of restricted cash related to the Company’s master repurchase agreement with UBS AG (the “UBS Facility”). Remaining Weighted Average Life assumes all extension options are exercised. The underwritten IRR for the investments s
Slide 9: Commercial Real Estate Debt Portfolio Overview
Commercial Real Estate Debt Portfolio Overview Net Invested Equity at Amortized Cost Basis(1) Geographic Diversification by Net Equity Property Type by Net Equity Subordinate loans include CMBS, held-to-maturity and are net of participations sold of $116,952. ARI presents the participations sold as
Slide 10: Commercial Real Estate Loan Portfolio – Maturity and Type
Commercial Real Estate Loan Portfolio – Maturity and Type ($ in Millions) Fully Extended Loan Maturities and Future Fundings (1)(2)(3)(4) Based upon face amount of loans; does not include CMBS, but does include CMBS, held-to-maturity. Maturities reflect the fully funded amounts of the loans. Subordi
Slide 11: Loan Portfolio – Loan Level LTV (Senior Loans)
Loan Portfolio – Loan Level LTV (Through Last Invested Dollar) This includes three first mortgage loans with outstanding balances of $85,770, $23,000 and $5,910 respectively, secured by cross collateralized retail parcels. LTV is based upon fully committed loan amount of $121,410. This whole loan in
Slide 12: Loan Portfolio – Loan Level LTV (Subordinate Loans)
Loan Portfolio – Loan Level LTV (Through Last Invested Dollar) Subordinate Loans LTV is based upon the fully committed loan amount of $105,000; Both loans are secured by the same property. The $30,000 loan is structured as a corporate loan and has additional collateral. Based upon £55.0 million face
Slide 13: CMBS Portfolio
CMBS Portfolio(1) Face Amortized Cost Remaining Weighted Average Life with Extensions (years) Estimated Fair Value Debt Net Equity at Cost(2) CMBS – Total $ 505,134 $ 498,630 1.4 Years $ 472,464 $ 410,767 $ 143,644 CUSIP Description 92978PAJ8 WBCMT 2006-C29 AJ 07388QAH2 BSCMS 2007-PW17 AJ 07401DAH4
Slide 14: Portfolio Metrics – Quarterly Migration Summary
Portfolio Metrics – Quarterly Migration Summary Subordinate loans include CMBS, held-to-maturity and are net of participations sold of $116,952. ARI presents the participations sold as both assets and non-recourse liabilities because the participation does not qualify as a sale according to GAAP. Th
Slide 15: Financing Overview and Interest Rate Sensitivity
Financing Overview and Interest Rate Sensitivity Facility ($000s) Debt Balance Weighted Average Remaining Maturity(1) Weighted Average Rate UBS Facility $ 133,899 2.5 Years 2.8% Deutsche Bank Facility 276,868 2.0 Years 3.7% JPMorgan Facility (2) 635,676 2.8 Years 2.6% Goldman Sachs Loan 44,873 3.1 Y
Slide 16: Financials
Financials
Slide 17: Consolidated Balance Sheets
Consolidated Balance Sheets
Slide 18: Consolidated Statements of Operations
Consolidated Statements of Operations
Slide 19: Reconciliation of Operating Earnings to Net Income
Reconciliation of Operating Earnings to Net Income
Slide 20: Financial Metrics – Quarterly Migration Summary
Financial Metrics – Quarterly Migration Summary Operating Earnings is a non-GAAP financial measure that is used by the Company to approximate cash available for distribution and is defined by the Company as net income available to common stockholders, computed in accordance with GAAP, adjusted for (
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