Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Q2 2019 Earnings Presentation
20 slides from Apollo Commercial Real Estate Finance's earnings presentation, Jul 24, 2019
Slide 1: Supplemental Financial Information Q2 2019
Exhibit 99.2 A P O L L O C O M M E R C I A L R E A L E S T A T E F I N A N C E , I N C . Supplemental Financial Information Q2 2019 July 24, 2019 Information is as of June 30, 2019, except as otherwise noted. It should not be assumed that investments made in the future will be profitable or will equ
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: Q2 Highlights
Q2 Highlights • Net income available to common stockholders of $56.5 million, or $0.37 per diluted share of common stock 1 • Operating Earnings , excluding the realized loss on investment, of $69.1 million, or $0.47 per diluted share of common stock Financial Results • Net interest income of $85.0 m
Slide 4: Financial Summary
Financial Summary Income Statement Three months ended Six months ended ($ and shares in mm, except for per share data) 6/30/2019 6/ 30 /2 01 8 % Cha n g e 6/ 30 /2 01 9 6/ 30 /2 01 8 % Cha nge Net interest income $85.0 $70.8 20.1% $167.8 $134.0 25.2% Net income available to common stockholders 56.5
Slide 5: Q2 Investment Activity
Q2 Investment Activity Q2 19 Investment Summary Outstanding Portfolio (QTD) ($ in mm) Loans Closed 5 Commitments to New Loans $554 3 Weighted Average Unlevered All-in Yield - First Mortgage 4.6% 3 Weighted Average Unlevered All-in Yield - Subordinate 13.8% 12 Weighted Average Loan-to-Value (“LTV”) 5
Slide 6: YTD Investment Activity
YTD Investment Activity YTD Investment Summary Outstanding Portfolio (YTD) ($ in mm) Loans Closed 9 Commitments to New Loans $1,003 3 Weighted Average Unlevered All-in Yield - First Mortgage 5.5% 3 Weighted Average Unlevered All-in Yield - Subordinate 12.3% 12 Weighted Average Loan-to-Value (“LTV”)
Slide 7: Q2 Investment and Repayment Activity
Q2 Investment and Repayment Activity Summary of New Investments 17 17 • €199.6 million ($226.9 million) of a €391.3 million floating-rate senior mortgage loan (€171.7 million ($195.2 million) of which was funded at closing) for the acquisition of an 88,438 square meter office complex in Berlin, Germ
Slide 8: Commercial Real Estate Loan Portfolio Overview
Commercial Real Estate Loan Portfolio Overview Loan Position at Amortized Cost Loan Position by Invested Net Equity at Amortized Cost ($ in mm) 6/30/2019 3/31/2019 Number of Loans 71 Loans 69 Loans Amortized Cost $5,444 $5,187 6 Invested Net Equity at Cost $3,643 $3,027 14 Unfunded Loan Commitments
Slide 9: Commercial Real Estate Loan Portfolio Diversification
Commercial Real Estate Loan Portfolio Diversification Geographic Diversification by Amortized Cost Property Type by Amortized Cost 18 ($ in mm) Mid- United Other Manhattan, NY Brooklyn, NY Northeast West Midwest Southeast Southwest Total Property Type Atlantic Kingdom International Hotel $454 / 8% -
Slide 10: Senior Loan Portfolio Overview
Senior Loan Portfolio Overview ($ in mm) Origination Amortized Unfunded Construction Fully-extended 14 20 Property Type Risk rating Date Cost Commitments Loan Maturity Location Hotel 3 9/2016 $210 - 1/2022 Manhattan, NY Residential-for-sale: inventory 3 3/2018 206 - 3/2021 London, UK Urban Predevelo
Slide 11: Subordinate Loan Portfolio Overview
Subordinate Loan Portfolio Overview ($ in mm) Origination Amortized Unfunded Construction Fully-extended 14 20 Property Type Risk rating Date Cost Commitments Loan Maturity Location 23 Residential-for-sale: construction 3 6/2015 $196 - Y 2/2021 Manhattan, NY Office 3 1/2019 99 - 12/2025 Manhattan, N
Slide 12: Loan Portfolio Maturity Profile
Loan Portfolio Maturity Profile 24,25,26 ($ in mm) Fully Extended Loan Maturities and Estimated Future Fundings See footnotes on page 19 11Loan Portfolio Maturity Profile 24,25,26 ($ in mm) Fully Extended Loan Maturities and Estimated Future Fundings See footnotes on page 19 11
Slide 13: Capital Structure Overview
Capital Structure Overview ~$5.9 Billion Total Capitalization Capital Structure Composition Capital Structure Detail ($ in mm, except per share data) ($ in mm) $169 W.A. 27 W.A. Rate Amount $575 Credit Facilities Capacity Maturity 2 Five Jun 2022 $2,859 USD L+2.10% / $1,801 28 Counterparties GBP L+2
Slide 14: Liquidity
Liquidity ($ in mm) 30 32 31 See footnotes on page 19 13Liquidity ($ in mm) 30 32 31 See footnotes on page 19 13
Slide 15: Interest Rate Sensitivity
Interest Rate Sensitivity 24 33 Net Interest Income Sensitivity to USD LIBOR Rate Profile of Loan Portfolio See footnotes on page 19 14Interest Rate Sensitivity 24 33 Net Interest Income Sensitivity to USD LIBOR Rate Profile of Loan Portfolio See footnotes on page 19 14
Slide 16: Financials
Financials APOLLO Real Estate Finance
Slide 17: Consolidated Balance Sheets
Consolidated Balance Sheets (in thousands - except share data) June 30, 2019 December 31, 2018 Assets: Cash and cash equivalents $116,472 $109,806 Commercial mortgage loans, net (includes $3,638,419 and $3,197,900 pledged as collateral under secured debt arrangements in 2019 and 2018, respectively)
Slide 18: Consolidated Statements of Operations
Consolidated Statements of Operations (in thousands - except share data and per share data) Three months ended Six months ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Net interest income: Interest income from commercial mortgage loans $77,458 $65,141 $155,744 $117,255 Interest incom
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 Six months ended 1 Operating Earnings : June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Net income available to common stockholders $56,505 $48,512 $117,428 $91,110 A
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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