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SEC Filings
8-K
APOLLO COMMERCIAL REAL ESTATE FINANCE, INC. filed this Form 8-K on 02/28/2017
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Fourth Quarter and Full Year 2016 Operating Results

The Company reported net income available to common stockholders of $49.7 million, or $0.60 per diluted share of common stock, for the three months ended December 31, 2016 as compared to net income available to common stockholders of $21.4 million, or $0.32 per diluted share of common stock, for the three months ended December 31, 2015. Operating Earnings were $41.0 million, or $0.49 per diluted share of common stock, for the three months ended December 31, 2016 as compared to Operating Earnings of $32.4 million, or $0.48 per diluted share of common stock, for the three months ended December 31, 2015.

The Company reported net income available to common stockholders of $127.6 million, or $1.74 per diluted share of common stock, for the twelve months ended December 31, 2016, as compared to net income available to common stockholders of $91.4 million, or $1.54 per diluted share of common stock, for the twelve months ended December 31, 2015.

The Company reported Operating Earnings of $137.0 million, or $1.87 per diluted share of common stock, for the twelve months ended December 31, 2016. Excluding expenses associated with the acquisition of AMTG in 2016, which totaled approximately $11.4 million, the Company reported Operating Earnings of $148.3 million, or $2.02 per diluted share of common stock, as compared to Operating Earnings of $112.7 million, or $1.90 per diluted share of common stock, for the twelve months ended December 31, 2015.

Fourth Quarter 2016 Investment Activity

New Investments – During the fourth quarter, ARI closed the following commercial real estate debt investments:

 

    $330.0 million of first mortgage loans ($295.3 million of which were funded during the quarter), which were underwritten to generate a levered weighted average IRR(1) of approximately 14.7%; and

 

    $217.4 million of subordinate loans ($217.4 million of which were funded at closing), which were underwritten to generate a weighted average IRR(1) of approximately 13.1%.

Funding of Previously Closed Loans – During the fourth quarter, ARI funded approximately $28.1 million for previously closed loans.

Loan Repayments – During the fourth quarter, ARI received approximately $130.5 million from loan repayments.

Quarter End Commercial Real Estate Debt Portfolio Summary

The following table sets forth certain information regarding the Company’s commercial real estate debt portfolio at December 31, 2016 ($ amounts in thousands):

 

Description

   Amortized
Cost
     Weighted
Average
Yield
    Debt      Cost
of
Funds
    Equity at
Cost(2)
     Current
Weighted
Average
Underwritten
IRR (1)
    Fully-
Levered
Weighted
Average
Underwritten
IRR(1)(3)
 

First mortgage loans

   $ 1,641,856        8.1   $ 835,464        3.0   $ 806,392        12.8     15.4

Subordinate loans(4)

     1,112,609        13.2       —          n/a       1,112,609        13.2       13.2  

CMBS

     368,247        6.0       311,102        3.3       119,602        8.4       8.4  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total/Weighted Average

   $ 3,122,712        9.7   $ 1,146,566        3.0   $ 2,038,603        12.8     13.8
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Please see chart footnotes at the end of the press release.

Loan-to-Value

At December 31, 2016, the Company’s commercial real estate loan portfolio, which includes CMBS, held-to-maturity, had a weighted average loan-to-value (“LTV”) of 63%. Within the commercial real estate loan portfolio, the first mortgage loans had a weighted average LTV of 62% and the subordinate loans (including CMBS, held-to-maturity) had a weighted average LTV of 64%.

 

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