Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Q1 2021 Earnings Presentation
19 slides from Apollo Commercial Real Estate Finance's earnings presentation, Apr 23, 2021
Slide 1: Q1 2021 Financial Results
Q1 2021 Financial Results April 22, 2021 Exhibit 99.2
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 2021 Highlights
ARI Q1 2021 Highlights See footnotes on page 18 Strong Distributable Earnings1 $0.39 Distributable Earnings1 per Diluted Share of Common Stock Diversified Financing Sources $300 Million Upsized Term Loan B with Seven-Year Term Increased Originations Activity $528 Million New Mortgage Commitments Clo
Slide 4: Q1 Summary Results, Capitalization and Loan Portfolio
Liquidity Summary Results See footnotes on page 18 Excludes benefit of forward points on currency hedges related to loans denominated in currencies other than USD Excludes loans on non-accrual Financial Results Capitalization Loan Portfolio Net interest income of $71 million Net income available to
Slide 5: Q1 Portfolio Activity
Q1 Portfolio Activity Outstanding Portfolio 5 ($ in mm) Includes benefit of forward points on currency hedges related to loans denominated in currencies other than USD; Weighted Average Unlevered All-in Yield is based on the applicable benchmark rates as of period and includes accrual of origination
Slide 6: Book Value per Share Roll Forward
Book Value per Share6 Roll Forward Quarterly Book Value per Share6 Book Value per Share See footnotes on page 18 7
Slide 7: Capital Structure Overview
Capital Structure Overview See footnotes on page 18 ($ in mm) Secured Debt Obligationsa Common Equity Book Valueb Convertible Notes Term Loan B Preferred Stock $3,430 (48%) $791 (11%) $575 (8%) $169 (3%) Prudent Management of ARI’s Balance Sheet Results in Low Leverage and Diverse Capital Sources Ca
Slide 8: Loan Portfolio Overview
Loan Portfolio Overview See footnotes on page 18 Diversified Loan Portfolio Secured by Predominately Institutional Properties in Global Gateway Cities Collateral Diversification Loan Position W/A Unlevered All-in Yield on Loan Portfolio4,a 6.2% W/A Remaining Fully-Extended Term10 2.8 Years W/A Portf
Slide 9: Loan Portfolio Overview (cont'd)
Loan Portfolio Overview (cont’d) See footnotes on page 18 ($ in mm) a 7, 12 New York City 35% West 9% Midwest 8% Southeast 8% Southwest 3% Northeast 1% Geographically Diverse Note: Map does not show locations where percentages are 1% or lower Italy 2% United Kingdom 22% Spain 4% Germany 3% 7 Other g
Slide 10: Senior Loan Portfolio Overview (Page 1 of 2)
See footnotes on page 18 Senior Loan Portfolio Overview (Page 1 of 2) ($ in mm) 10, 13 Includes £17.4 million ($24.0 million converted to USD) subordinate participating interest a
Slide 11: Senior Loan Portfolio Overview (Page 2 of 2)
See footnotes on page 18 Senior Loan Portfolio Overview (Page 2 of 2) ($ in mm) 10, 13 14,a 14 14,a 7 Property type was changed from urban predevelopment during the quarter ended March 31, 2021
Slide 12: Subordinate Loan Portfolio Overview
Subordinate Loan11 Portfolio Overview In the form of a single-asset, single-borrower CMBS Includes $26.7 million subordinate participating interest See footnotes on page 18 16, a b 15 7 15 a 16 15 7, 12 10, 13 ($ in mm)
Slide 13: Q1 Business Update
Q1 Business Update Summary of Repayments and Sales $175 million of full loan repayments: $139 million repayment of a floating-rate mortgage secured by an office property in Renton, WA $36 million repayment of a floating-rate subordinate loan secured by a residential for-sale inventory property in Ma
Slide 14: Loan Maturities and Future Fundings Profile
Loan Maturities and Future Fundings Profile See footnotes on page 18 Fully-Extended Loan Maturities and Expected Future Fundings by Net Equity13, 17, 18 ($ in mm) Note: Assumes future financing, in certain cases, against mortgages that are not currently financed Net of expected secured credit facili
Slide 15: Apollo Commercial Real Estate Finance
APOLLO | commercial Real Estate Finance 4
Slide 16: Consolidated Balance Sheets
(in thousands - except share data) March 31, 2021 December 31, 2020 f Assets: Cash and cash equivalents $294,060 $325,498 Commercial mortgage loans, net a,b 5,754,258 5,451,084 Subordinate loans and other lending assets, net b 1,065,816 1,045,893 Other assets 68,882 74,640 Real estate owned, held fo
Slide 17: Consolidated Statements of Operations
(in thousands - except share and per share data) Three Months Ended March 31, 2021 2020 Net interest income: Interest income from commercial mortgage loans $75,356 $81,855 Interest income from subordinate loans and other lending assets 31,459 34,018 Interest expense (35,664 ) (41,205 ) Net interest
Slide 18: Distributable Earnings Reconciliation
(in thousands - except share and per share data) Three Months Ended March 31, Distributable Earnings1: 2021 2020 Net income (loss) available to common stockholders: $54,950 ($131,227) Adjustments: Equity-based compensation expense 4,387 4,263 Unrealized loss on interest rate swap — 35,548 Gains on f
Slide 19: Footnotes
Footnotes Distributable Earnings, formerly known as 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 f
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