Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Q3 2016 Earnings Presentation
21 slides from Apollo Commercial Real Estate Finance's earnings presentation, Oct 27, 2016
Slide 1: Supplemental Financial Information Package – Q3 2016
Information is as of September 30, 2016, except as otherwise noted. It should not be assumed that investments made in the future will be profitable or will equal the performance of investments in this document. Supplemental Financial Information Package – Q3 2016 October 27, 2016 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 Q3 2016 Earnings Call
ARI Q3 2016 Earnings Call October 27, 2016 Stuart Rothstein Chief Executive Officer and President Scott Weiner Chief Investment Officer of the Manager Jai Agarwal Chief Financial Officer, Treasurer and Secretary Hilary Ginsberg Investor Relations Manager
Slide 4: Financial Summary
Financial Summary 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 e
Slide 5: Q3 Financial Highlights
Q3 Financial Highlights Financial Results & Earnings Per Share Net income available to common stockholders of $60.6 million, or $0.83 per diluted share of common stock for the three months ended September 30, 2016 Operating Earnings(1) of $32.7 million, or $0.45 per diluted share of common stock for
Slide 6: Q3 Financial Highlights (cont.) – Book Value
Book Value GAAP book value per share of common stock of $15.94 as of September 30, 2016 as compared to GAAP book value per share of common stock of $15.51 as of June 30, 2016 Q3 Financial Highlights (cont.) Book Value Roll Forward
Slide 7: Q3 – New Investments and Funding
Q3 – New Investments and Funding Summary of New Investments Based upon committed amount of loan. Internal rate of return ("IRR") is the annualized effective compounded return rate that accounts for the time-value of money and represents the rate of return on an investment over a holding period expre
Slide 8: Commercial Real Estate Debt Portfolio Overview
Commercial Real Estate Debt Portfolio Overview CMBS includes $62,324 of restricted cash related to the Company’s master repurchase agreements with UBS AG (the “UBS Facility”) and Deutsche Bank (the “DB CMBS Facility”). Remaining Weighted Average Life assumes all extension options are exercised. Inte
Slide 9: Commercial Real Estate Debt Portfolio Overview
Commercial Real Estate Debt Portfolio Overview Net Invested Equity at Amortized Cost Basis(1) Geographic Diversification by Net Equity Property Type by Net Equity Subordinate loans include CMBS, held-to-maturity and are net of participations sold of $110.9 million. ARI presents the participations so
Slide 10: Commercial Real Estate Loan Portfolio – Maturity and Type
Commercial Real Estate Loan Portfolio – Maturity and Type ($ in Millions) Fully Extended Loan Maturities and Future Fundings (1)(2)(3)(4) Based upon face amount of loans; does not include CMBS, but does include CMBS, held-to-maturity. Maturities reflect the fully funded amounts of the loans. Subordi
Slide 11: Loan Portfolio – Loan Level LTV: Senior Loans
Loan Portfolio – Loan Level LTV (Through Last Invested Dollar) Senior Loans LTV is based upon the fully committed loan amount of $133,000. This includes four first mortgage loans with outstanding balances of $85,770, $23,000, $7,500 and $5,910, respectively, secured by cross collateralized retail pa
Slide 12: Loan Portfolio – Loan Level LTV: Subordinate Loans
Loan Portfolio – Loan Level LTV (Through Last Invested Dollar) Subordinate Loans LTV is based upon the fully committed loan amount of $105,000; both loans are secured by the same property. The $30,000 loan is structured as a corporate loan and has additional collateral. Based upon £55.0 million face
Slide 13: CMBS Portfolio
CMBS Portfolio(1) Face Amortized Cost Remaining Weighted Average Life with Extensions (years) Estimated Fair Value Debt Net Equity at Cost(2) CMBS – Total $ 402,392 $ 395,160 2.0 Years $ 347,456 $ 330,155 $ 127,329 CUSIP Description 14986DAJ9 CD 2006-CD3 AJ 17311QBN9 CGCMT 2007-C6 AJ 17313KAK7 CGCMT
Slide 14: Portfolio Metrics – Quarterly Migration Summary
Portfolio Metrics – Quarterly Migration Summary Subordinate loans include CMBS, held-to-maturity and are net of participations sold of $110,924. ARI presents the participations sold as both assets and non-recourse liabilities because the participation does not qualify as a sale according to GAAP. In
Slide 15: Financing Overview and Interest Rate Sensitivity
Financing Overview and Interest Rate Sensitivity Variable Rate Investments & Liabilities ($000s) Variable Rate Liabilities ARI anticipates a 0.5% increase in LIBOR results in approximately a $0.07 per diluted share of common stock increase in Operating Earnings annually(4) Assumes extension options
Slide 16: Financials
Financials
Slide 17: Consolidated Balance Sheets
Consolidated Balance Sheets
Slide 18: Consolidated Statements of Operations
Consolidated Statements of Operations
Slide 19: Reconciliation of Operating Earnings to Net Income
Reconciliation of Operating Earnings to Net Income In order to evaluate the effective yield of the portfolio, the Company uses Operating Earnings to reflect the net investment income of the Company’s portfolio as adjusted to include the net interest expense related to the Company’s derivative instru
Slide 20: Reconciliation of Operating Earnings to Net Income
Reconciliation of Operating Earnings to Net Income
Slide 21: Financial Metrics – Quarterly Migration Summary
Financial Metrics – Quarterly Migration Summary 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 (
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