Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Q3 2017 Earnings Presentation
21 slides from Apollo Commercial Real Estate Finance's earnings presentation, Nov 1, 2017
Slide 1: Supplemental Financial Information Package – Q3 2017
Information is as of September 30, 2017, 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 – Q3 2017 November 1, 2017 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: Q3 Highlights
Q3 Highlights Net income available to common stockholders of $57.2 million, or $0.54 per diluted share of common stock Operating earnings(1) of $49.8 million, or $0.47 per diluted share of common stock Net interest income of $71.2 million Total operating expenses of $12.9 million, comprised of manag
Slide 4: Financial Summary
Financial Summary 3Q17 3Q16 % Change Net Interest Income $71.2 $53.3 33.6% Net Income Available to Common Stockholders $57.2 $60.6 (5.6%) W.A. Diluted Shares Outstanding 107 73 46.6% Net Income Available to Common Stockholders per Diluted Share $0.54 $0.83 (34.9%) Operating Earnings(1) $49.8 $32.7 5
Slide 5: Q3 Investment Activity
Q3 Investment Activity Weighted Average Unlevered All-in-Yield(3) 10.3% Weighted Average LTV 63% Commitments to New Loans $423 Loans Closed 6 3Q17 Investment Highlights Outstanding Portfolio ($ in millions) Add-on Fundings $46 See footnotes on page 20 $281mm net portfolio growth Funding of New Loans
Slide 6: YTD 9/30 Investment Activity
YTD 9/30 Investment Activity Weighted Average Unlevered All-in-Yield(3) 9.2% Weighted Average LTV 62% Funding of New Loans Commitments to New Loans $911 Loans Closed 16 YTD Investment Highlights Outstanding Portfolio ($ in millions) Add-on Funding $191 See footnotes on page 20 $866mm net portfolio g
Slide 7: Summary of New Investments
Summary of New Investments Q3 Investment Activity $125.0 million floating-rate first mortgage loan (all of which was funded at closing) and a $37.5 million mezzanine loan for the refinancing of a mixed-use property comprised of a 468-key all-suite hotel, a theater and 9,000 sq. ft. of electronic sig
Slide 8: Commercial Real Estate Loan Portfolio Overview
Number of Loans Amortized Cost Net Equity at Cost Unfunded Loan Commitments(9) Weighted Average Unlevered All-in Yield on Floating-Rate Loans(3) Weighted Average Unlevered All-in-Yield(3) Weighted Average Remaining Term(2) Weighted Average LTV 56 Loans $3,559 $2,418 $80 L+8.2% 9.5% 2.5 Years 62% 52
Slide 9: Commercial Real Estate Loan Portfolio Overview
Commercial Real Estate Loan Portfolio Overview Geographic Diversification by Amortized Cost Property Type by Amortized Cost See footnotes on page 20 ($ in millions) (10) (10)
Slide 10: Senior Loan Portfolio Overview
Senior Loan Portfolio Overview See footnotes on page 20 Weighted Average Floating Rate Yield(3) - L+6.0%Weighted Average All-in Yield(3) – 7.3% Weighted Average LTV - 61%
Slide 11: Subordinate Loan Portfolio Overview
Subordinate Loan Portfolio Overview See footnotes on page 20 Weighted Average Floating Rate Yield(3) - L+12.0%Weighted Average All-in Yield(3) – 13.1% Weighted Average LTV - 64% TOTAL PORTFOLIO WEIGHTED AVERAGE: Floating Rate Yield(3) – L+8.2% All-in-Yield(3) – 9.5% LTV – 62%
Slide 12: Loan Maturities, Future Fundings and LTV Profiles
($ in millions) Fully Extended Loan Maturities and Future Fundings(12)(13)(14) Commercial Real Estate Loan Portfolio Maturity and LTV Profiles See footnotes on page 20 Loan Portfolio at Amortized Cost Across LTVs(15) ($ in millions) Weighted Average LTV - 62%
Slide 13: CMBS Portfolio
CMBS Portfolio Face Amortized Cost Remaining Weighted Average Life with Extensions (years) Estimated Fair Value Debt Net Equity at Cost(16) CMBS – Total $222.5 $217.2 2.0 Years $191.9 $149.3 $68.0 CUSIP Description 14986DAJ9 CD 2006-CD3 AJ 17313KAK7 CGCMT 2008-C7 AJ 50180CAG5 LBUBS 2006-C7 AJ 60688C
Slide 14: Capital Structure Overview
Secured Credit Facilities $1.3 Billion Outstanding 3.55% W/A Rate 5.50% Convertible Notes $251 Million Series B & Series C Cumulative Preferred Stock $372.5 Million Equity Market Capitalization(17) $1.9 Billion 5.50% notes - convertible to common stock –ratio of 57.3034 ($17.45 effective conversion
Slide 15: Interest Rate Sensitivity
Interest Rate Sensitivity Variable Rate Investments and Liabilities(22) Net Interest Income Sensitivity to LIBOR(23) ($ in millions) Net Interest Income Increases with LIBOR Increase See footnotes on page 20
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 GAAP Net Income to Operating Earnings
Reconciliation of GAAP Net Income to Operating Earnings(1) See footnotes on page 20
Slide 20: Reconciliation of GAAP Net Income to Operating Earnings
Reconciliation of GAAP Net Income to Operating Earnings(1) See footnotes on page 20
Slide 21: Footnotes
Footnotes 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 expense (
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