Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Q3 2018 Earnings Presentation
20 slides from Apollo Commercial Real Estate Finance's earnings presentation, Oct 25, 2018
Slide 1: Supplemental Financial Information Q3 2018
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 Q3 2018 October 24, 2018 Information is as of September 30, 2018, except as otherwise noted. It should not be assumed that investments made in the future will be profitable or
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: Q3 Highlights
Q3 Highlights • Net income available to common stockholders of $55.4 million, or $0.40 per diluted share of common stock 1 • Operating Earnings, excluding loss on early extinguishment of debt, of $60.9 million, or $0.47 per diluted share of common stock Financial Results • Net interest income of $77
Slide 4: Financial Summary
Financial Summary Income Statement 3Q18 2Q18 1Q18 ($ mm, except in per share data) Net interest income $77.5 $70.8 $63.2 Net income available to common stockholders 55.4 48.5 42.6 Diluted weighted average shares of common stock outstanding 153.9 124.6 111.9 Net income per diluted share of common sto
Slide 5: Q3 Investment Activity
Q3 Investment Activity 3Q18 Investment Summary Outstanding Portfolio ($ mm) Loans Closed 2 Commitments to New Loans $285 9 Add-on Fundings $97 3 Weighted Average Unlevered All-in-Yield 7.7% 12 10 Weighted Average Loan-to-Value (“LTV”) 49% See footnotes on page 19 4Q3 Investment Activity 3Q18 Investm
Slide 6: YTD Investment Activity
YTD Investment Activity YTD Investment Summary Outstanding Portfolio ($ mm) Loans Closed 21 Commitments to New Loans $2,175 13 Add-on Fundings $175 3 Weighted Average Unlevered All-in-Yield 8.3% 12 10 Weighted Average Loan-to-Value (“LTV”) 58% See footnotes on page 19 5YTD Investment Activity YTD In
Slide 7: Q3 Investment Activity: Summary of New Investments
Q3 Investment Activity Summary of New Investments 14 • £154.5 million ($198.0 million) floating-rate senior mortgage loan (none of which was funded at closing) for the redevelopment and repositioning of a ~275,000 square ft. office tower located in London, U.K. • $87.0 million floating-rate senior m
Slide 8: Commercial Real Estate Loan Portfolio Overview
Commercial Real Estate Loan Portfolio Overview Loan Position at Amortized Cost Loan Position by Invested Net Equity at Amortized Cost ($ mm) 9/30/2018 6/30/2018 Number of Loans 68 Loans 70 Loans Amortized Cost $4,828 $4,867 5 Invested Net Equity at Cost $2,814 $2,886 11 Unfunded Loan Commitments $88
Slide 9: Commercial Real Estate Loan Portfolio Diversification
Commercial Real Estate Loan Portfolio Diversification Geographic Diversification by Amortized Cost Property Type by Amortized Cost ($ mm) Mid United Other Manhattan, NY Brooklyn, NY Northeast Midwest Southeast West Atlantic Southwest Kingdom International Property Type Total Hotel $433 / 9% - - $86
Slide 10: Senior Loan Portfolio Overview
Senior Loan Portfolio Overview Unfunded Fully-extended Property Type Risk Rating Origination Date Amortized Cost Commitment Construction Loan Maturity Location 1/2016 $222 - 7/2019 Miami, FL Urban Predevelopment 3 3/2018 220 - 3/2021 London, UK Residential-for-sale: inventory 3 Hotel 3 9/2016 215 -
Slide 11: Subordinate Loan Portfolio Overview
Subordinate Loan Portfolio Overview Unfunded Fully-extended Property Type Risk Rating Origination Date Amortized Cost Commitment Construction Loan Maturity Location 19 6/2015 $177 - Y 7/2020 Manhattan, NY Residential-for-sale: construction 3 10/2016 112 - 10/2021 Various Healthcare 3 6/2018 95 - 5/2
Slide 12: Loan Portfolio Maturity Profile
Loan Portfolio Maturity Profile 20,21,22 ($ mm) Fully Extended Loan Maturities and Estimated Future Fundings See footnotes on page 19 11Loan Portfolio Maturity Profile 20,21,22 ($ mm) Fully Extended Loan Maturities and Estimated Future Fundings See footnotes on page 19 11
Slide 13: Capital Structure Overview
Capital Structure Overview ~$5.3 billion Total Capitalization Capital Structure Composition Capital Structure Detail ($mm, except per share data) Amount ($) Capacity W.A. Rate Maturity Outstanding 23,24 2 Credit Facilities $3,001 USD L+2.26%/ Jan 2021 $2,014 GBP L+2.27% Convertible Notes 2019 Notes
Slide 14: Liquidity
Liquidity ($ mm) 25 See footnotes on page 19 13Liquidity ($ mm) 25 See footnotes on page 19 13
Slide 15: Interest Rate Sensitivity
Interest Rate Sensitivity 20 26 Net Interest Income Sensitivity to LIBOR Rate Profile of Loan Portfolio See footnotes on page 19 14Interest Rate Sensitivity 20 26 Net Interest Income Sensitivity to LIBOR Rate Profile of Loan Portfolio See footnotes on page 19 14
Slide 16: Financials
FinancialsFinancials
Slide 17: Consolidated Balance Sheets
Consolidated Balance Sheets (in thousands - except share data) September 30, 2018 December 31, 2017 Assets: Cash $99,188 $77,671 Commercial mortgage loans, net (includes $3,245,600 and $2,148,368 pledged as collateral under secured debt arrangements in 2018 and 2017, respectively) 3,723,550 2,653,82
Slide 18: Consolidated Statements of Operations
Consolidated Statements of Operations (in thousands - except share data and per share data) Three months ended Nine months ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Net interest income: Interest income from commercial mortgage loans $71,179 $41,203 $188,434 $1
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 Nine months ended 1 Operating Earnings : September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Net income available to common stockholders $55,381 $57,2
Slide 20: Footnotes
Footnotes 1. Operating Earnings is a non-GAAP financial measure that is used by the Company to approximate cash available for distribution and is defined by the Company as net income available to common stockholders, computed in accordance with GAAP, adjusted for (i) equity-based compensation expens
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