Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Q4 2018 Earnings Presentation
20 slides from Apollo Commercial Real Estate Finance's earnings presentation, Feb 13, 2019
Slide 1: Supplemental Financial Information Q4 2018
APOLLO COMMERCIAL REAL ESTATE FINANCE, INC. Supplemental Financial Information Q4 2018 February 13, 2019 Information is as of December 31, 2018, except as otherwise noted. It should not be assumed that investments made in the future will be profitable or will equal the performance of the investments
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: Q4 Highlights
Q4 Highlights Net income available to common stockholders of $46.2 million, or $0.34 per diluted share of common stock Financial Results Operating Earnings, 1 of $61.9 million, or $0.46 per diluted share of common stock Net interest income of $77.8 million Book value per share of common stock of $16
Slide 4: Financial Summary
Financial Summary Income Statement ($ in mm, except in per share data) 4Q 18 3Q 18 2Q 18 1Q 18 FY18 Net interest income $77.8 $77.5 $70.8 $63.2 $289.3 Net income available to common stockholders $46.2 55.4 48.5 42.6 192.6 Diluted weighted average shares of common stock outstanding 163.9 153.9 124.6
Slide 5: Q4 Investment Activity
Q4 Investment Activity Q4 18 Investment Summary Outstanding Portfolio ($ in mm) ($ in mm) Loans Closed 6 Commitments to New Loans $797 Add-on Fundings9 $134 Weighted Average Unlevered All-in Yield3 7.2% 12 Weighted Average Loan-to-Value (“LTV”)10 60% See footnotes on page 19 4
Slide 6: 2018 Investment Activity
2018 Investment Activity 2018 Investment Summary Outstanding Portfolio ($ in mm) ($ in mm) 2018 2017 Loans Closed 27 28 Commitments to New Loans $2,972 $2,045 Add-on Fundings 13 $281 $193 Weighted Average Unlevered All-in Yield3 8.1% 9.1% 12 Weighted Average Loan-to-Value (“LTV”)10 58% 64% See footn
Slide 7: Q4 Investment Activity: Summary of New Investments
Q4 Investment Activity Summary of New Investments $200.0 million ($176.2 million of which was funded at closing) of a $652.0 million floating-rate senior mortgage loan for the redevelopment of an ~1.1 million square ft. office building in the West Chelsea neighborhood of New York, NY $187.0 million
Slide 8: Commercial Real Estate Loan Portfolio Overview
Commercial Real Estate Loan Portfolio Overview Loan Position at Amortized Cost Loan Position by Invested Net Equity at Amortized Cost ($ in mm) 12/31/2018 9/30/2018 12/31/2017 Number of Loans 69 Loans 68 Loans 59 Loans Amortized Cost $4,928 $4,828 $3,680 Invested Net Equity at Cost 5 $3,031 $2,814 $
Slide 9: Commercial Real Estate Loan Portfolio Diversification
Commercial Real Estate Loan Portfolio Diversification Geographic Diversification by Amortized Cost Property Type by Amortized Cost 15 ($ in mm) United Other Property Type Manhattan, NY Brooklyn, NY Northeast Midwest West Southeast Mid Atlantic Southwest Kingdom International Total Hotel $439 / 9% —
Slide 10: Senior Loan Portfolio Overview
Senior Loan Portfolio Overview ($ in mm) Unfunded Fully-extended Property Type Risk Rating Origination Date Amortized Cost Commitment Construction Loan Maturity Location Urban Predevelopment 3 1/2016 $222—7/2019 Miami, FL Residential-for-sale: inventory 3 3/2018 216—3/2021 London, UK Hotel 3 9/2016
Slide 11: Subordinate Loan Portfolio Overview
Subordinate Loan Portfolio Overview ($ in mm) Unfunded Fully-extended Property Type Risk Rating Origination Date Amortized Cost Commitment Construction Loan Maturity Location Residential-for-sale: construction 19 3 6/2015 $183—Y 7/2020 Manhattan, NY Healthcare 3 10/2016 109—10/2021 Various Residenti
Slide 12: Loan Portfolio Maturity Profile
Loan Portfolio Maturity Profile ($ in mm) Fully Extended Loan Maturities and Estimated Future Fundings 20,21,22 See footnotes on page 19 11
Slide 13: Capital Structure Overview
Capital Structure Overview ~$5.1 billion Total Capitalization Capital Structure Composition Capital Structure Detail ($ in mm, except per share data) Amount ($) Credit Facilities Capacity W.A. Rate Maturity Amount 23 Five Counterparties 24,25 $3,125 USD L+2.17%/ Dec 20202 $1,897 GBP L+2.28% Converti
Slide 14: Liquidity
Liquidity ($ in mm) Cash 26 Approved and Total Available Unallocated Total Potential Undrawn Credit Capital Credit 27 Liquidity Capacity See footnotes on page 19 13
Slide 15: Interest Rate Sensitivity
Interest Rate Sensitivity Rate Profile of Loan Portfolio 20 Net Interest Income Sensitivity to LIBOR 28 See footnotes on page 19 14
Slide 16: Financials
Financials APOLLO
Slide 17: Consolidated Balance Sheets
Consolidated Balance Sheets (in thousands—except share data) December 31, 2018 December 31, 2017 Assets: Cash $109,806 $77,671 Commercial mortgage loans, net (includes $3,197,900 and $2,148,368 pledged as collateral under secured debt arrangements in 2018 and 2017, respectively) 3,878,981 2,653,826
Slide 18: Consolidated Statements of Operations
Consolidated Statements of Operations (in thousands—except share data and per share data) Three months ended Year ended December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Net interest income: Interest income from commercial mortgage loans $75,275 $45,942 $263,709 $158,632 Intere
Slide 19: Reconciliation of GAAP Net Income to Operating Earnings
Reconciliation of GAAP Net Income to Operating Earnings 1 (in thousands—except share and per share data) Three months ended Year ended Operating Earnings 1: December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Net income available to common stockholders $46,155 $34,322 $192,646 $1
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
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