Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Investor Presentation (November 2024)
21 slides from Apollo Commercial Real Estate Finance's investor presentation, November 2024
Slide 1: Apollo Commercial Real Estate Finance Investor Presentation
Apollo Commercial Real Estate Finance Investor Presentation November 2024 Unless otherwise noted, information as of September 30, 2024. It should not be assumed that investments made in the future will be profitable or will equal the performance of the investments shown in this document. GWMS,202411
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: Apollo Commercial Real Estate Finance
Apollo Commercial Real Estate Finance Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI) is a LEADING COMMERCIAL MORTGAGE REIT focused on originating SENIOR MORTGAGES and SUBORDINATE LOANS collateralized by a variety of property types and geographies throughout the UNITED STATES, the UNITED KING
Slide 4: A History of Success Centered on Four Key Factors
A History of Success Centered on Four Key Factors ARI has a Reputation as an Innovative, Creative Global CRE Debt Provider 1 2 3 4 APOLLO 2 DIFFERENTIATED STABLE AND DIVERSE PRUDENT BALANCE SPONSORSHIP ORIGINATION & ASSET PORTFOLIO SHEET MANAGEMENT MANAGEMENT PLATFORM 9 High-growth global alternativ
Slide 5: Differentiated Origination and Asset Management Platform
Differentiated Origination and Asset Management Platform ARI benefits from being part of Apollo’s leading global CRE debt franchise PREMIER GLOBAL LEADING ASSET MANAGER ORIGINATION Market intelligence, asset level PLATFORM insight and information sharing 42 investment professionals in 4 across a glo
Slide 6: Loan Portfolio Overview
Loan Portfolio Overview Carrying Value/ W/A Unlevered All-in Yield Loan Position8 Number of Loans on Loan Portfolio7,8,(a) $7.8 billion/45 Loans 95% First Mortgage 8.5% W/A Remaining Fully-Extended W/A Portfolio Risk Rating8 W/A Portfolio Loan-to-Value(b) Term8,9 2.5 Years 3.0 58% Collateral Diversi
Slide 7: Loan Portfolio Overview (cont'd)
Loan Portfolio Overview (cont’d) ($ in mm) United New Other Property Type Kingdom York City Europe Southeast West Midwest Northeast Other(b) Total10 Office $643 / 8% $472 / 6% $501 / 6% - - $176 / 2% - - $1,792 / 23% Hotel 7 / 0% 245 / 3% 508 / 6% 450 / 6% 208 / 3% 57 / 1% 9 / 0% 137 / 2% 1,621 / 21
Slide 8: Office Loan Portfolio Overview
Office Loan Portfolio Overview Number of Loans (a) Carrying Value First Mortgage8 W/A Loan-to-Value(b) 10 Loans $1.8 Billion 100% 51% Loans with 3rd Party Largest commitment 100% W/A Risk Rating8 Subordinate Debt leased to credit tenant(c) 2.9 3 Loans $673 million Origination Vintage8 Location8 Full
Slide 9: Capital Structure Overview
Capital Structure Overview Capital Structure Composition Conservative Capital Management Strategy ($ in mm) No Corporate Debt ~71% Weighted Average Available Maturities until May 2026 Advance Rate(e) Secured Debt Arrangements(a),(b),(c) 3.5x Debt to Equity Ratio5 1.3x Fixed Charge Coverage12 $5,525
Slide 10: Continued Tailwinds from Elevated Base Interest Rates
Continued Tailwinds from Elevated Base Interest Rates Predominately floating rate portfolio with low leverage and global geographic diversification NET INTEREST INCOME SENSITIVITY TO BENCHMARK RATES 13,(a) Benchmark Rates Index Sep-30 SOFR 1M 4.85% EURIBOR 3.28% SONIA ON 4.97% +$0.01 +$0.01 +$0.01 +
Slide 11: Investment Highlights
Investment Highlights 1 Fourteen-Year Track Record as an Innovative, Creative Global CRE Debt Provider 2 “First Call Relationships” with Real Estate Sponsors, Brokers and Capital Partners 3 Power of Apollo Sponsorship 4 Stable and Diverse Portfolio 5 Tailwinds from Elevated Base Rates 6 11.3% Divide
Slide 12: Appendix
Appendix 12 GWMS,20241115-4013757-12757811-SR-[No]
Slide 13: Corporate Responsibility
Corporate Responsibility ARI is committed to responsible investing ARI recognizes the importance of environmental, social and governance (“ESG”) issues and incorporates ESG considerations into investment analysis and decision- making processes. ARI strives to make a positive impact on all of the Com
Slide 14: Consolidated Balance Sheets
Consolidated Balance Sheets ($ in thousands - except share data) 6HSWHPEHU£ 'HFHPEHU£ Assets: Cash and cash equivalents $194,287 $225,438 Commercial mortgage loans, net (a)(c) 7,456,389 7,925,359 Subordinate loans, net (b)(c) 374,222 432,734 Real estate owned, held for investment, net(d) (net of $20
Slide 15: Consolidated Statement of Operations
Consolidated Statement of Operations ($ in thousands - except share and per share data) 7KUHH0RQWKV(QGHG6HSWHPEHU£ 1LQH0RQWKV(QGHG6HSWHPEHU£ 2024 2023 2024 2023 Net interest income: Interest income from commercial mortgage loans $179,921 $180,441 $543,025 $520,712 Interest income from subordinate lo
Slide 16: Reconciliation of GAAP Net Income to Distributable Earnings
Reconciliation of GAAP Net Income to Distributable Earnings14 ($ in thousands - except share and per share data) Three Months Ended September 30, Nine Months Ended September 30, Distributable Earnings : 14 2024 2023 2024 2023 Net income (loss) available to common stockholders: ($94,617) $43,003 ($16
Slide 17: Senior Loan Portfolio (1 of 3)
Senior Loan Portfolio (1 of 3) ($ in mm) Origination Amortized Unfunded Construction 3rd Party Fully-extended 9 Office Property Type Date Cost Commitments Loan Subordinate Debt Maturity Location (a) London, UK Loan 1 Office 02/2022 $461 $209 Y 02/2027 Loan 2 Office 03/2022 249 17 Y 04/2027 Manhattan
Slide 18: Senior Loan Portfolio (2 of 3)
Senior Loan Portfolio (2 of 3) Origination Amortized Unfunded Construction 3rd Party Fully-extended Retail Property Type Date Cost Commitments Loan Subordinate Debt Maturity 9 Location Loan 20 Retail 04/2022 $510 $24 04/2027 Various, UK Loan 21 Retail 10/2021 435 - 10/2026 Various, UK Loan 22 Retail
Slide 19: Senior Loan Portfolio (3 of 3)
Senior Loan Portfolio (3 of 3) Origination Amortized Unfunded Construction 3rd Party Fully-extended 9 Industrial Property Type Date Cost Commitments Loan Subordinate Debt Maturity Location Loan 34 Industrial 03/2021 $243 - 05/2026 Various, Sweden Loan 35 Industrial 08/2024 128 127 Y 08/2029 Various,
Slide 20: Subordinate Loan Portfolio
Subordinate Loan Portfolio ($ in mm) Origination Amortized Unfunded Construction 3rd Party Fully-extended Property Type Date Cost Commitments Loan Subordinate Debt Maturity 9 Location Loan 4216 Residential 06/2015 $273 - 11/2025 Manhattan, NY 16 Loan 43 Residential 08/2022 74 - 11/2025 Manhattan, NY
Slide 21: Footnotes
Footnotes 1. Reflects closing share price on October 29, 2024 and for equity market capitalization, includes preferred stock outstanding as of September 30, 2024. 2. Apollo refers to Apollo Global Management, Inc. and its consolidated subsidiaries. 3. Assets Under Management (“AUM”) - The assets of
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