Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Q3 2020 Earnings Presentation
19 slides from Apollo Commercial Real Estate Finance's earnings presentation, Oct 26, 2020
Slide 1: Q3 2020 Financial Results
Q3 2020 Financial Results October 26, 2020 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 Q3 2020 Highlights at a Glance
ARI Q3 2020 Highlights at a Glance See footnotes on page 18 $0.36 Operating Earnings1 per share of Common Stock $6.4 Billion Global CRE Debt Portfolio 84% First Mortgage Loans 1.7x Debt / Equity Ratio2 0.6x Price / Book Ratio3 $450 Million Liquidity 15.5% Dividend Yield4 $0.35 Dividend per share of
Slide 4: Summary Results
Liquidity Summary Results See footnotes on page 18 Excludes benefit of forward points on currency hedges related to loans denominated in currencies other than USD Excludes loans on non-accrual Financial Results Capitalization Loan Portfolio Net interest income of $68.6 million Net income available t
Slide 5: Dividend Coverage and Growth in Book Value per Share
Book Value per Share7 Growth Dividend Coverage and Growth in Book Value per Share See footnotes on page 18 Represents Operating Earnings1 per share to common dividends declared per share Dividend Coverage Ratioa Book Value per Share7 Roll Forward
Slide 6: Capital Structure Overview
Capital Structure Overview See footnotes on page 18 Capital Structure Detail Capital Stack Composition ($ in mm) 11 12 10 13 ~64% W.A. Advance Rate Across Secured Debt Obligations 1.7x Debt-to-Equity Ratio2 2.1x Fixed Charge Coverage8 Secured Debt Obligations Common Equity Book Value Convertible Not
Slide 7: Liquidity
See footnotes on page 18 Liquidity ($ in mm) Cash on hand Approved & Undrawn Credit Capacity Represents amounts approved and undrawn under secured credit facilities. While these amounts were previously contractually approved and/or drawn, in certain cases, the lender’s consent is required for us to
Slide 8: Loan Portfolio Overview
($ in mm) 9/30/2020 6/30/2020 Number of Loans 70 Loans 71 Loans Carrying value, net $6,437 $6,388 Invested Net Equity, at Cost15 $2,959 $2,948 Weighted Average Unlevered All-in Yield on Loan Portfolio6,a 6.2% 6.7% Weighted Average Remaining Fully-Extended Term16 2.9 Years 3.1 Years Weighted Average
Slide 9: Loan Portfolio Diversification
New York City 37% West 11% Midwest 9% Southeast 9% Southwest 3% Northeast 2% Loan Portfolio Diversification See footnotes on page 18 ($ in mm) Other geographies include: Southwest (3%), Northeast (2%), Mid-Atlantic (1%), and Other International (<1%) Other property types include: Multifamily (3%), M
Slide 10: Senior Loan Portfolio Overview (Page 1 of 2)
See footnotes on page 18 Senior Loan Portfolio Overview (Page 1 of 2) ($ in mm) 18 11, 16
Slide 11: Senior Loan Portfolio Overview (Page 2 of 2)
See footnotes on page 18 Senior Loan Portfolio Overview (Page 2 of 2) ($ in mm) 11, 16 18 18 18 13 18
Slide 12: Subordinate Loan Portfolio Overview
Subordinate Loan14 Portfolio Overview Sold a subordinate position subsequent to quarter end In the form of a single-asset, single-borrower CMBS ($ in mm) See footnotes on page 18 18 20,b b 19 19 12 11, 16 18 a 13,17 13 20
Slide 13: Q3 Business Update
Q3 Business Update Summary of Repayments and Sales Subsequent Events In July, sold a £97.5 million mortgage loan secured by a residential for-sale property in London, UK to a third party; resulted in net sale proceeds of $36.6 millionb (99.5% of par) after repayment of associated Credit Suisse secur
Slide 14: Future Fundings and Maturities Profile
Future Fundings and Maturities Profile See footnotes on page 18 Fully Extended Loan Maturities11,22 ($ in mm) Expected Future Fundings21 Rest of Year Future Fundings (as of October 23rd) Net of expected secured credit facility advances and carry costs in the form of interest (net of advances) payabl
Slide 15: Apollo Commercial Real Estate Finance
APOLLO | commercial Real Estate Finance 4
Slide 16: Consolidated Balance Sheets
(in thousands - except share data) September 30, 2020 December 31, 2019 f Assets: Cash and cash equivalents $438,234 $452,282 Commercial mortgage loans, net a,b 5,427,945 5,326,967 Subordinate loans and other lending assets, net b 1,009,092 1,048,126 Derivative assets, net 13,654 — Other assets 43,6
Slide 17: Consolidated Statements of Operations
(in thousands - except share and per share data) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Net interest income: Interest income from commercial mortgage loans $74,522 $81,136 $232,018 $236,880 Interest income from subordinate loans and other lending assets
Slide 18: Operating Earnings Reconciliation
(in thousands - except share and per share data) Three months ended September 30 Nine months ended September 30 Operating Earnings1: 2020 2019 2020 2019 Net income (loss) available to common stockholders: $45,953 $25,704 ($28,458 ) $143,132 Adjustments: Equity-based compensation expense 4,212 3,889
Slide 19: Footnotes
Footnotes 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 shoul
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