Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Q1 2022 Earnings Presentation
19 slides from Apollo Commercial Real Estate Finance's earnings presentation, Apr 25, 2022
Slide 1: Q1 2022 Financial Results
APOLLO COMMERCIAL REAL ESTATE FINANCE, INC. Q1 2022 Financial Results April 25, 2022 Information is as of March 31, 2022, except as otherw ise noted. It should not be assumed that investments made in the future w ill be profitable or w ill equal the performance of the investments in this document.
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 Q1 2022 Highlights
ARI Q1 2022 Highlights Strong Distributable Earnings1,a TTMb Dividend Coverage $0.35 1.02x Distributable Earnings1 per Diluted Share of Common Stock Coverage Ratio for Dividend per Share of Common Stock2 Robust Originations Activity Durable Balance Sheet $1.8 Billion $1.8 Billion New Mortgage Commit
Slide 4: Summary Results
Summary Results Net interest income of $55.1 million Q1 Net income available to common stockholders of $12.2 million, or $0.08 per diluted share of common stock Financial Results Distributable Earnings1,a of $49.5 million, or $0.35 per diluted share of common stock Declared a common stock di
Slide 5: Portfolio Activity
Portfolio Activity Q1 Portfolio Activity ($ in mm) 8 9 Key Highlights Q1’22 $1.8 billion 100% 5.6% 50% Commitments to Floating Rate Weighted Average Weighted Average New Mortgage Loans Mortgages Unlevered All-in Yield a Loan-to-Valueb a) Includes benefit of forw ard points on currency hedges related
Slide 6: Book Value per Share
Book Value per Share Book Value per Share10 Book Value per Share10 Roll Forward General CECL BVPS excl. General CECL BVPS Allowance & Depreciation Allowance & Depreciation 12/31/2021 $15.19 ($0.28) $15.47 (-) Specific CECL Allowance ($0.22) - ($0.22) (-) Vesting and delivery of RSUs ($0.12) - ($0.12
Slide 7: Capital Structure Overview
Capital Structure Overview Capital Structure Composition Conservative Capital Management Strategy ($ in mm) Seven Secured Debt Counterparties and One Private Securitization Borrowings denominated in USD, GBP, EUR, and SEK Secured Debt Obligationsa to reduce currency risk $4,582 (52%) ~71% Weighted A
Slide 8: Loan Portfolio Overview
Loan Portfolio Overview W/A Unlevered All-in Yield on Number of Loans Carrying Value Loan Portfolio6,a 67 ~$8.4 billion 5.0% W/A Remaining Fully- W/A Portfolio Loan-to- W/A Portfolio Risk Rating14 Extended Term14,17 Value14,b 3.0 Years 3.1 58% Collateral Diversification Loan Position 15 c a) Exclude
Slide 9: Loan Portfolio Overview (cont'd)
Loan Portfolio Overview (cont’d) ($ in mm) New United Other Property Type York City Kingdom Europe Southeast Midwest Northeast West Othera Total9 Office $726 / 9% $476 / 6% $557 / 7% - $223 / 3% - - - $1,981 / 24% Hotel 145 / 2% 175 / 2% 565 / 7% 548 / 7% 61 / 1% 7 / 0% 272 / 3% 176 / 2% 1,949 / 23%
Slide 10: Q1 Business Update
Q1 Business Update Committed $1.8 billion ($1.2 billion funded) to new floating-rate mortgage loan commitments Completed $1455 million of gross add-on fundings during the quarter New Fundings Portfolio Total Q1 repayments of $0.7 billion (including $0.6 billion of full satisfactions) Repayment
Slide 11: Senior Loan Portfolio Overview (Page 1 of 2)
Senior Loan Portfolio Overview (Page 1 of 2) ($ in mm) Origination Amortized Unfunded Construction 3rd Party Fully-extended 14, 17 Hotel Date Cost Commitments Loan Subordinate Debt Maturity Location Loan 1 10/2019 $327 $46 Y 8/15/2024 Various, Spain Loan 2 11/2021 215 24 Y 11/2/2026 Various, UK/Irel
Slide 12: Senior Loan Portfolio Overview (Page 2 of 2)
Senior Loan Portfolio Overview (Page 2 of 2) ($ in mm) Origination Amortized Unfunded Construction 3rd Party Fully-extended Retail Center Date Cost Commitments Loan Subordinate Debt Maturity 14, 17 Location Loan 33 10/2021 $403 - 10/11/2026 Various, UK Loan 34 18 11/2014 105 - 9/30/2022 Cincinnati,
Slide 13: Subordinate Loan Portfolio Overview
Subordinate Loan15 Portfolio Overview ($ in mm) Amortized Unfunded Construction 3rd Party Fully-extended Residential-for-sale Cost Commitments Loan Subordinate Debt Maturity 14, 17 Location Loan 56 a 6/2015 $242 - Y 5/1/2022 Manhattan, NY Loan 57 a 5/2020 179 - Y 5/1/2022 Manhattan, NY Loan 58 a, 18
Slide 14: Loan Maturities and Future Fundings Profile
Loan Maturities and Future Fundings Profile Fully-Extended Loan Maturities and Expected Future Fundings by Net Equity17,19,20 ($ in mm) a a Net Interest Income Sensitivity to Benchmark Rates21,b Note: Assumes future financing, in certain cases, against mortgages that are not currently financed a) Ne
Slide 15: Appendix
A P Oo LL O Commercial Real Estate Finance 14
Slide 16: Consolidated Balance Sheets
Consolidated Balance Sheets (in thousands - except share data) March 31, 2022 December 31, 2021 f Assets: Cash and cash equivalents $215,749 $343,106 Commercial mortgage loans, net a,b 7,586,554 7,012,312 Subordinate loans and other lending assets, net b 763,488 844,948 Assets related to real estate
Slide 17: Consolidated Statements of Operations
Consolidated Statements of Operations (in thousands - except share and per share data) Three months ended March 31, 2022 2021 Net interest income: Interest income from commercial mortgage loans $84,424 $75,356 Interest income from subordinate loans and other lending assets 15,835 31,459 Interest exp
Slide 18: Reconciliation of GAAP Net Income to Distributable Earnings
Reconciliation of GAAP Net Income to Distributable Earnings1 (in thousands - except share and per share data) Three months ended March 31, Distributable Earnings1 : 2022 2021 Net income available to common stockholders: $12,170 $54,950 Adjustments: Equity-based compensation expense 4,698 4,387 Gain
Slide 19: Footnotes
Footnotes 1. Distributable Earnings, formerly know n as Operating Earnings, is a non-GAAP financial measure that w e define as net income available to common stockholders, computed in accordance w ith GAAP, adjusted for (i) equity-based compensation expense (a portion of w hich may become cash-based
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