Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Investor Presentation (February 2025)
22 slides from Apollo Commercial Real Estate Finance's investor presentation, February 2025
Slide 1: Apollo Commercial Real Estate Finance Investor Presentation
Apollo Commercial Real Estate Finance Investor Presentation February 2025 Unless otherwise noted, information as of December 31, 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,2025022
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 High-growth global alternativ
Slide 5: Differentiated Origination and Asset Management Platform
Differentiated Origination and Asset Management Platform ARI has benefited 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 50+ investment professionals in across a
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) $7.1 billion/45 Loans 95% First Mortgage 8.1% W/A Remaining Fully-Extended W/A Portfolio Risk Rating8 W/A Portfolio Loan-to-Value(b) Term8,9 2.5 Years 3.0 57% Collateral Diversi
Slide 7: Loan Portfolio Overview (cont'd)
Loan Portfolio Overview (cont’d) ($ in mm) United New Other 10 Property Type Kingdom York City Europe Midwest Southeast West Other (d) Total Office $634 / 9% $482 / 7% $468 / 7% $173 / 2% - - - $1,757 / 25% Hotel 7 / 0% 246 / 3% 496 / 7% 141 / 2% 354 / 5% 212 / 3% 120 / 2% 1,575 / 22% Residential(a)
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% 50% Loans with 3rd Party Largest commitment 100% W/A Risk Rating8 Subordinate Debt leased to credit tenant(c) 2.9 3 Loans $690 million Origination Vintage8 Location8 Fully
Slide 9: Loan Maturities and Future Funding Profile
Loan Maturities and Future Funding Profile Fully-Extended Loan Maturities and Expected Future Fundings by Net Equity9,(a),(b) ($ in mm) $577 $507 $448 $389 $408 $65 $0 $17 $1 $0 2025 2026 2027 2028 2029 & Beyond (c) Fully-Extended Maturities (Net Equity)(c) Expected Net Future Fundings Note: Assumes
Slide 10: Non-Performing and REO Assets: Path to Resolution
Non-Performing and REO Assets: Path to Resolution ARI remains focused on proactive asset management and targeting resolution on focus assets as we seek to maximize value recovery and convert non-accrual and underperforming capital into capital generating an ROE consistent with recently originated lo
Slide 11: Capital Structure Overview
Capital Structure Overview Capital Structure Composition Conservative Capital Management Strategy ($ in mm) No Corporate Debt ~70% W/A Available Advance Maturities until May 2026 Rate(e) Secured Debt Arrangements(a),(b),(c) 3.2x Debt to Equity Ratio5 1.3x Fixed Charge Coverage12 $4,824 (58%) Corpora
Slide 12: 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 Dec-31 SOFR 1M 4.33% EURIBOR 2.71% SONIA ON 4.71% +$0.02 Net Interest In
Slide 13: Investment Highlights
Investment Highlights 1 Sixteen-Year Track Record as an Innovative, Creative Global CRE Debt Provider 2 “First Call Relationships” with Real Estate Sponsors, Brokers and Capital Partners 3 Power of Apollo Sponsorship 4 Stable and Diverse Portfolio 5 Tailwinds from Elevated Base Rates 6 9.9% Dividend
Slide 14: Appendix
Appendix 14 GWMS,20250221-4256339-13461131
Slide 15: Consolidated Balance Sheets
Consolidated Balance Sheets ($ in thousands - except share data) December 31, 2024 December 31, 2023 Assets: Cash and cash equivalents $317,396 $225,438 Commercial mortgage loans, net (a)(c) 6,715,347 7,925,359 Subordinate loans, net (b)(c) 388,809 432,734 Real estate owned, held for investment, net
Slide 16: Consolidated Statement of Operations
Consolidated Statement of Operations ($ in thousands - except share and per share data) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Net interest income: Interest income from commercial mortgage loans $156,364 $180,290 $699,389 $701,002 Interest income from subordinate
Slide 17: Reconciliation of GAAP Net Income to Distributable Earnings
Reconciliation of GAAP Net Income to Distributable Earnings14 ($ in thousands - except share and per share data) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 14 Distributable Earnings : Net income (loss) available to common stockholders: $37,584 $43,472 ($131,908) $45,
Slide 18: Senior Loan Portfolio
Senior Loan Portfolio ($ in mm) Property Origination Amortized Unfunded Construction 3rd Party Fully-extended 9 Office Type Date Cost Commitments Loan Subordinate Debt Maturity Location (a) London, UK Loan 1 Office 02/2022 $463 $223 Y 12/2028 Loan 2 Office 03/2022 256 11 Y 04/2027 Manhattan, NY Loan
Slide 19: Senior Loan Portfolio (cont'd)
Senior Loan Portfolio (cont’d) Property Origination Amortized Unfunded Construction 3rd Party Fully-extended 9 Residential Type Date Cost Commitments Loan Subordinate Debt Maturity Location Loan 20 Residential 12/2021 $226 $11 12/2026 Various, UK Loan 21 Residential 07/2024 187 - 07/2029 Various, UK
Slide 20: Senior Loan Portfolio (cont'd)
Senior Loan Portfolio (cont’d) Property Origination Amortized Unfunded Construction 3rd Party Fully-extended 9 Mixed Use Type Date Cost Commitments Loan Subordinate Debt Maturity Location Loan 34 Mixed Use 12/2019 $209 - Y 11/2025 London, UK Loan 35 Mixed Use 03/2022 154 24 Y 03/2027 Brooklyn, NY Su
Slide 21: Subordinate Loan & Other Lending Assets Portfolio
Subordinate Loan & Other Lending Assets Portfolio ($ in mm) Property Origination Amortized Unfunded Construction 3rd Party Fully-extended Type Date Cost Commitments Loan Subordinate Debt Maturity 9 Location 16 Manhattan, NY Loan 42 Residential 06/2015 $288 - 11/2025 16 Loan 43 Residential 08/2022 74
Slide 22: Footnotes
Footnotes 1. Reflects closing share price on February 18, 2025 and for equity market capitalization, includes preferred stock outstanding as of December 31, 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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