Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Apollo Commercial Real Estate Finance, Inc. | d342289d8k.htm |
| EX-99.1 - EARNINGS RELEASE - Apollo Commercial Real Estate Finance, Inc. | d342289dex991.htm |
 May 4, 2012
Supplemental Financial Information Presentation
Q1 2012
Information is as of March 31, 2012 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.
*
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Exhibit 99.2 |
 1
COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)
Legal Disclaimer
We
make
forward-looking
statements
in
this
presentation
and
other
filings
we
make
with
the
SEC
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
covered
by
the
safe
harbor
provided
by
the
same.
Forward-looking
statements
are
subject
to
substantial
risks
and
uncertainties,
many
of
which
are
difficult
to
predict
and
are
generally
beyond
our
control.
These
forward-looking
statements
include
information
about
possible
or
assumed
future
results
of
our
business,
financial
condition,
liquidity,
results
of
operations,
plans
and
objectives.
When
we
use
the
words
“believe,”
“expect,”
“anticipate,”
“estimate,”
“plan,”
“continue,”
“intend,”
“should,”
“may”
or
similar
expressions,
we
intend
to
identify
forward-looking
statements.
Statements
regarding
the
following
subjects,
among
others,
may
be
forward-looking:
our
business
and
investment
strategy;
our
operating
results;
our
ability
to
obtain
and
maintain
financing
arrangements;
the
return
on
equity,
the
yield
on
investments
and
risks
associated
with
investing
in
real
estate
assets,
including
changes
in
business
conditions
and
the
general
economy.
The
forward-looking
statements
are
based
on
our
beliefs,
assumptions
and
expectations
of
our
future
performance,
taking
into
account
all
information
currently
available
to
us.
Forward-looking
statements
are
not
predictions
of
future
events.
These
beliefs,
assumptions
and
expectations
can
change
as
a
result
of
many
possible
events
or
factors,
not
all
of
which
are
known
to
us.
Some
of
these
factors
are
described
under
“Risk
Factors,”
and
“Management’s
Discussion
and
Analysis
of
Financial
Condition
and
Results
of
Operations”
as
included
in
ARI’s
Annual
Report
on
Form
10-K
for
the
fiscal
year
ended
December
31,
2011.
If
a
change
occurs,
our
business,
financial
condition,
liquidity
and
results
of
operations
may
vary
materially
from
those
expressed
in
our
forward-looking
statements.
Any
forward-looking
statement
speaks
only
as
of
the
date
on
which
it
is
made.
New
risks
and
uncertainties
arise
over
time,
and
it
is
not
possible
for
us
to
predict
those
events
or
how
they
may
affect
us.
Except
as
required
by
law,
we
are
not
obligated
to,
and
do
not
intend
to,
update
or
revise
any
forward-looking
statements,
whether
as
a
result of new information, future events or otherwise.
This
presentation
may
contain
statistics
and
other
data
that
in
some
cases
has
been
obtained
from
or
compiled
from
information
made
available
by third-party service providers. |
 2
COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)
Apollo Commercial Real Estate Finance, Inc.
2012 First Quarter Earnings Call
May 4, 2012
Joseph Azrack
Chairman
Stuart Rothstein
Chief Executive Officer, President and Chief Financial Officer
Scott Weiner
Chief Investment Officer of the Manager
Megan Gaul
Controller of the Manager
Hilary Ginsberg
Investor Relations Manager |
 3
COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)
ARI –
Financial Summary
(1)
Fixed rate debt refers to the TALF borrowings which were refinanced with
the Wells repurchase facility during January 2012. (2)
Debt service coverage is EBITDA divided by interest expense.
Income Statement
2012
2011
% Change
14,429
$
10,938
$
31.9%
(3,242)
$
(3,339)
$
-2.9%
Net interest income (in thousands)
11,187
$
7,599
$
47.2%
0.42
$
0.29
$
44.8%
20,966,426
17,551,828
19.5%
March 31,
December 31,
Balance sheet
2012
2011
% Change
666,005
$
860,247
$
-22.6%
338,377
$
336,978
$
0.4%
2.8 Years
2.2 Years
1.1x
1.6x
-
$
251,327
$
355,257
$
290,700
$
5.4x
3.9x
Three Months Ended March 31,
Interest income (in thousands)
Interest expense (in thousands)
Operating earnings per share
Basic and diluted weighted average common shares
outstanding
Investments at amortized cost (in thousands)
Net equity (in thousands)
Investments - Weighted average Duration
Debt to equity
Fixed rate debt (in thousands)
(1)
Debt service coverage
(2)
Floating rate debt (in thousands) |
 4
COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)
ARI –
Overview
Operating Earnings per Share
*
For
the
period
from
ARI’s
initial
public
offering
on
September
23,
2009
through
December
31,
2009.
(1)
Return on equity is calculated as annualized operating income for the
quarter as a percentage of average equity. -$0.17
$1.09
$1.47
$0.42
-$0.20
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
2009*
2010
2011
Q1 2012
$1.50
$1.60
$0.40
$0.00
$0.40
$0.80
$1.20
$1.60
$2.00
2009*
2010
2011
Q1 2012
$491
$21,771
$38,464
$11,187
$0
$10,000
$20,000
$30,000
$40,000
2009*
2010
2011
Q1 2012
Dividends per Share
Net Interest Income ($000s)
Return
on
Equity
Based
on
Operating
Income
(1)
9.6%
9.3%
9.8%
10.4%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
Q2 2011
Q3 2011
Q4 2011
Q1 2012 |
 5
COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)
ARI –
Q1 Highlights
Financial Results & Earnings Per Share
Operating Earnings for the quarter ended March 31, 2012 of $8.8
million, or $0.42 per diluted common share
(1)
–
A per share increase of 45% as compared with Operating Earnings per
share for the same period in 2011 –
Net interest income of $11.2 million for Q1 2012
–
Total expenses of $3.3 million, comprised of management fees of $1.3
million, G&A of $0.9 million and non-cash, stock based
compensation of $1.1 million GAAP net income for the quarter
ended March 31, 2012 of $9.1 million, or $0.43 per diluted
common share
Dividend
Declared a dividend of $0.40 per share of common stock for the quarter
ended March 31, 2012 Declared a dividend of $0.40 per share of
common stock for the quarter ended June 30, 2012 –
10.1%
annualized
dividend
yield
based
on
$15.87
closing
price
on
May
2,
2012
(1)
Operating Earnings is a non-GAAP financial measure that is used to
approximate cash available for distribution and is defined by the Company as net income, computed in accordance with GAAP, adjusted for (i) non-cash
equity compensation expense and (ii) any unrealized gains or losses or
other non-cash items included in net income. Please see slide 19 for a reconciliation of operating earnings and operating earnings per diluted common
share to GAAP net income and GAAP net income per diluted common
share. |
 6
COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)
ARI –
Q1 Highlights
Investment and Portfolio Activity
New Investments
–
$15 million mezzanine loan on a 165-room hotel and commercial
space in New York, NY with an underwritten internal
rate
of
return
(“IRR”)
of
approximately
14.0%
(1)
–
$15 million mezzanine loan on a 226-room hotel in New York, NY
with an underwritten IRR of approximately 12.8%
(1)
CMBS Sale
–
Sold $137.4 million of CMBS, which resulted in approximately $262,000
of net realized gains, generated approximately $14.6 million of
equity proceeds for reinvestment and lowered the Company’s debt to equity
ratio to 1.1x
Portfolio Summary
Total investments with an amortized cost of $666 million at March 31,
2012 Weighted
average
underwritten
IRR
of
approximately
14.7%
(1)
Financing Overview
TALF Refinancing
–
Refinanced TALF debt with Wells Facility; Increased advance rate
generated approximately $14.1 million of
additional investable capital, lowered cost of funds by approximately
70 basis points and extended the term of the debt through
August 2013 (1)
The
internal
rates
of
return
(“IRR”)
for
the
investments
listed
reflect
the
returns
underwritten
by
the
Manager,
calculated
on
a
weighted
average
basis
assuming
no
dispositions,
early
prepayments
or
defaults
but
assumes
extensions
as
well
as
the
cost
of
borrowings
and
derivative
instruments
under
the
Company’s
master
repurchase
agreement
with
Wells
Fargo
Bank,
N.A.
(“Wells
Facility”).
There
can
be
no
assurance
the
actual
IRRs
will
equal
the
underwritten
IRRs
shown.
See
“Risk
Factors”
in
the
Company’s
Annual
Report
on
Form
10-K
for
the
year
ended
December
31,
2011
for
a
discussion
of
some
of
the
factors
that
could
adversely
impact
the
returns
received
by
the
Company
from
the
investments
over
time. |
 7
COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)
ARI –
Q1 Highlights and Subsequent Events
Book Value
GAAP book value of $16.46 per share as of March 31, 2012
–
ARI closed at $15.87 on May 2, 2012 or at a 3.6% discount to book
value per share Fair
value
of
$17.04
per
share
as
of
March
31,
2012
(1)
Subsequent Events
New Investments
–
Acquired two senior sub-participation interests with an aggregate
face value of $23.8 million, part of a $120 million first
mortgage loan secured by 20 acres of land in the South Boston Waterfront District, which is
entitled for over 5.8 million buildable square feet and is currently
used as parking with approximately 3,325 spaces. The
aggregate purchase price of the senior sub-participation interests was $17.8 million (75% of face
value)
and
they
are
expected
to
generate
an
IRR
of
approximately
21.9%,
after
the
payment
of
expenses
(2)
Amended Facility
–
Amended
the
JP
Morgan
repurchase
facility
to
reduce
the
interest
rate
spread
by
50
basis
points
(LIBOR +
2.50%); Based upon the Company’s current usage projections, the
Company expects the reduced spread should result in an annual
interest expense reduction of approximately $250,000 Loan
Repayment –
Received repayment from a $24 million first mortgage loan on a hotel
in midtown Manhattan, which generated $8.6 million of equity
for reinvestment after repayment of $15.4 million of borrowings
(1)
The Company carries loans at amortized cost and its CMBS securities are
marked to market. Management has estimated that the fair value of the Company’s financial assets at March 31, 2012 was approximately $11.9 million greater than the carrying value of the Company’s
investment
portfolio
as
of
the
same
date.
This
represents
a
premium
of
$0.58
per
share
over
the
Company's
GAAP
book
value
as
of
March
31,
2012.
(2)
The internal rates of return (“IRR”) for the investments
listed reflect the returns underwritten by the Manager,
calculated on a weighted average basis assuming no dispositions,
early prepayments or defaults but assumes extensions as well as the cost of borrowings and derivative
instruments under the Wells Facility. There can be no assurance the
actual IRRs will equal the underwritten IRRs shown. See “Risk Factors”
in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2011 for a discussion of some of the factors that could
adversely impact the returns received by the Company from the
investments over time. |
 8
COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)
ARI –
Portfolio Overview
Asset Type
($000s)
Amortized
Cost
Borrowings
Equity
at Cost
Remaining
Weighted
Average
Life
(years )
(1)
Weighted
Average
IRR
(2)(3)
First Mortgage Loans
(2)
$108,817
$68,607
$40,210
2.4
17.8%
Subordinate Loans
179,336
-
179,336
5.5
13.9%
Repurchase Agreements
47,439
-
47,439
2.0
13.7%
AAA CMBS
330,413
286,650
43,763
1.5
16.1%
Investments at March 31, 2012
$666,005
$355,257
$310,748
2.8 Years
14.7%
As of March 31, 2012.
(1)
Remaining Weighted Average Life assumes all extension options are
exercised. (2)
Borrowings
under
the
Company’s
master
repurchase
facility
with
JPMorgan
bear
interest
at
LIBOR
plus
300
basis
points,
or
3.2%
at
March
31,
2012.
The
IRR
calculation
further
assumes
the
JPM
repurchase
facility
will
remain available over the life of these investments.
(3)
The
IRR
for
the
investments
shown
in
the
above
table
reflect
the
returns
underwritten
by
the
Manager,
calculated
on
a
weighted
average
basis
assuming
no
dispositions,
early
prepayments
or
defaults
but
assumes
extensions
as
well
as
the
cost
of
borrowings
and
derivative
instruments
under
the
Wells
Facility.
There
can
be
no
assurance
the
actual
IRRs
will
equal
the
underwritten
IRRs
shown
in
the
table.
See
“Risk
Factors”
in
the
Company’s
Annual
Report
on
Form
10-K
for
the
year
ended
December
31,
2011
for
a
discussion
of
some
of
the
factors
that
could
adversely
impact
the
returns
received
by
the
Company
from
the
investments
shown
in
the
table
over
time. |
 9
COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)
ARI –
Portfolio Overview
Diversified Investment Portfolio with Amortized Cost Basis of $666
million Weighted
Average
IRR
of
Approximately
14.7%
(1)
Net Invested Equity at Amortized Cost Basis ($000s)
Gross Assets at Amortized Cost Basis ($000s)
As of March 31, 2012.
(1)
The
IRR
for
the
investments
shown
in
the
above
charts
reflect
the
returns
underwritten
by
the
Manager,
calculated
on
a
weighted
average
basis
assuming
no
dispositions,
early
prepayments
or
defaults
but
assumes
extensions
as
well
as
the
cost
of
borrowings
and
derivative
instruments
under
the
Wells
Facility.
There
can
be
no
assurance
the
actual
IRRs
will
equal
the
underwritten
IRRs
shown
in
the
charts.
See
“Risk
Factors”
in
the
Company’s
Annual
Report
on
Form
10-K
for
the
year
ended
December
31,
2011
for
a
discussion
of
some
of
the
factors
that
could
adversely
impact
the
returns
received
by
the
Company
from
the
investments
over
time.
AAA CMBS
50%
First Mortgages
16%
Subordinate
Loans
27%
Repurchase
Agreements
7%
AAA CMBS
14%
First Mortgages
13%
Subordinate
Loans
58%
Repurchase
Agreements
15% |
 10
COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)
ARI –
Loan Portfolio Diversification
As of March 31, 2012, first mortgages and subordinate loans represented
71% of ARI’s investment portfolio’s net equity
The loan portfolio is diversified by property type and geographic
location Loan Portfolio -
Geographic Diversification by Net
Equity
(1)
Loan Portfolio -
Property Type by Net Equity
(1)
(1)
Does
not
include
CMBS
or
repurchase
agreement
investment
secured
by
CDO
bond.
(2)
Other category includes the subordinate financing on a ski resort.
Hotel
47%
Office
13%
Retail
26%
Other (2)
14%
Northeast
50%
Southeast
5%
Mid-Atlantic
5%
Midwest
22%
West
18% |
 11
COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)
ARI –Loan Portfolio -
Maturity and Type
$24.0
$0
$47.4
$99.8
$65.4
$40.0
$0
$50.0
$8.9
$0
$20
$40
$60
$80
$100
$120
2012
2013
2014
2015
2016
2017
2018
2019
2020
Fully
Extended
Loan
Maturity
Schedule
($000s)
(1)
(1)
Based upon Amortized Cost; Does not include CMBS or repurchase agreement
investment secured by CDO bond. Loan Position and Rate Type
(1)
ARI’s Loan Portfolio had an amortized cost basis of $288 million
at March 31, 2012 Senior Fixed
46%
Mezzanine/
Preferred
Equity Fixed
30%
Mezzanine
Floating
12%
Subordinate
Loan Fixed
12% |
 12
COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)
ARI –
Loan Portfolio –
Loan Level LTV (Through Last Invested Dollar)
(1)
Ending LTV represents the loan-to-value as of the date of
investment for all loans except the $32,000 New York, NY hotel loan, which is as of March 2011.
Description ($ in thousands)
Location
Balance at
March 31, 2012
LTV (Senior
Mortgage)
Ending LTV
(1)
First Mortgage - Hotel
New York
31,739
$
0%
40%
First Mortgage - Office
New York
27,587
$
0%
54%
First Mortgage - Hotel
Maryland
25,491
$
0%
58%
First Mortgage - Hotel
New York
24,000
$
0%
40%
Subordinate - Ski Resort
California
40,000
$
32%
64%
Subordinate - Retail
Various
30,000
$
58%
69%
Subordinate - Retail
Virginia
25,397
$
60%
74%
Subordinate - Hotel Portfolio
New York
25,000
$
40%
60%
Subordinate -Retail
Various
20,000
$
58%
74%
Subordinate - Hotel
New York
15,000
$
51%
63%
Subordinate - Hotel
New York
15,000
$
51%
65%
Subordinate - Office
Michigan
8,939
$
53%
70%
Total
288,153
$
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100% |
 13
COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)
ARI –
Senior Loan Portfolio
Description ($000’s)
Date of
Investment
Maturity
Date
(1)
Original
Face
Amount
Current
Face
Amount
Coupon
Amortization
Schedule
Property
Size
Current
Loan
Amount
Appraised
LTV
(2)
Hotel
New York, NY
Jan-10
Feb-15
$32,000
$31,739
8.25%
30 year
151
rooms
$210/
key
40%
Office Condo (Headquarters)
New York, NY
Feb-10
Feb-15
28,000
27,587
8.00
30 year
73,419
sq. ft.
$377/
sq. ft.
54%
Hotel
Silver Spring, MD
Mar-10
Apr-15
26,000
25,491
9.00
25 year
263
rooms
$97/
key
58%
Hotel
New York, NY
Aug-10
Aug-12
24,000
24,000
8.00
Interest
only
155
rooms
$155/
key
40%
Total
.
.
$110,000
$108,817
8.31%
(1)
Maturity date assumes all extension options are exercised.
(2)
Appraised LTV represents the loan to value as of the date of investment
for all loans except the $32,000 New York, NY hotel loan, which is as of March 2011.
(3)
Interest rate includes 10% current payment with a 3% accrual.
Description ($000’s)
Date of
Investment
Maturity
Date
Original
Face
Amount
Current
Face
Amount
Coupon
Amortization
Schedule
Property
Size
Current
Loan
Amount
Appraised
LTV
(2)
Repurchase Agreement
(3)
Sept-10
Mar-14
$47,439
$47,439
13.00%
Interest
only
N/A
N/A
N/A
Total
$47,439
$47,439
13.00% |
 14
COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)
ARI –
Subordinate Loan Portfolio
Description ($000’s)
Date of
Investment
Maturity
Date
(1)
Original
Face
Amount
Current
Face
Amount
Coupon
Amortization
Schedule
Current
Loan
Amount
Appraised
LTV
(2)
Senior Mezz –
Retail
Various
Dec-09
Dec-19
(3)
$30,000
$30,000
12.24%
Interest
only
$86/
sq. ft.
69%
Junior Mezz –
Retail
Various
Dec-09
Dec-19
(3)
20,000
20,000
14.00
Interest
only
$91/
sq. ft.
74%
Office
Michigan
May-10
Jun-20
9,000
8,939
13.00
25 year
$82/
sq. ft.
70%
Ski Resort
California
Apr-11
May-17
(4)
40,000
40,000
13.25
Interest
only
$356/
key
64%
Hotel Portfolio
New York
(5)
Aug-11
July-16
(6)
25,000
25,000
11.49
(L+10.49%)
Interest
only
$339/
key
60%
Retail Center
Virginia
(7)
Oct-11
Oct-16
(7)
25,000
25,397
14.00
Interest
only
$281/
sq. ft.
74%
Hotel
(8)
New York
Jan-12
Jan-15
15,000
15,000
12.00
Interest
only
$484/
key
63%
Hotel
(9)
New York
Mar-12
Feb-16
15,000
15,000
11.50
(L+11.00%)
Interest
only
$310/
key
65%
Total
.
.
$179,000
$179,336
12.76%
(1) Maturity date assumes all extension options are
exercised (2) Appraised LTV represents the loan to value as
of the date of investment. (3) Prepayments are prohibited prior to
the fourth year of the loan and any prepayments thereafter are subject to prepayment penalties ranging from 5% to 1%.
(4) Prepayments are prohibited prior to the third year of the loan and
any prepayments thereafter are subject to prepayment penalties ranging from 5% to 1%.
(5) Includes a LIBOR floor of 1% and three one-year extension
options subject to certain conditions and the payment of a 0.25% fee for the fourth and fifth year extensions.
(6) Prepayments are prohibited prior to February 2013 and any
prepayments thereafter are subject to spread maintenance premiums.
(7) Interest rate of 14.0% includes a 10.0% current payment with
a 4.0% accrual. There are two one-year extension options
subject to certain conditions. (8) Includes a 1.00% origination
fee, a one-year extension option subject to certain conditions and a 0.50% extension fee as well as a 1.50% exit fee.
(9) Includes a LIBOR floor of 0.50%, two one-year extension options
subject to certain conditions and the payment of a 0.50% fee for the second extension. |
 15
COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)
ARI –
CMBS Portfolio
Face
Amortized
Cost
Remaining Weighted
Average Life with
Extensions (months)
Estimated
Fair Value
Debt
Net
Equity at
Cost
TOTAL CMBS
$324,798
$330,413
18
$330,896
$286,650
$44,246
AAA CMBS
CUSIP
Description
07388YAB8
BSCMS 07-PW16 A2
07401DAB7
BSCMS 2007-PW18 A2
12513YAC4
CD 2007-CD4 A2B
46629MAB1
JPMCC 2006-LDP8 A2
61754KAC9
MSC 07-IQ14 A2
92978YAB6
WBCMT 07-C32 A2
AAA CMBS
CUSIP
Description
07401DAB7
BSCMS 2007-PW18 A2
36246LAB7
GSMS 2007-GG10 A2
46630JAK5
JPMCC 2007-LDPX A2S
61751NAD4
MSC 2007-HQ11 A31
92978TAB7
WBCMT 2007-C31 A2 |
 16
COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)
Financials |
 17
COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)
Consolidated Balance Sheets
(in thousands—except share and per share data)
March 31, 2012
December 31, 2011
Assets:
Cash and cash equivalents
31,452
$
21,568
$
Securities available-for-sale,
at estimated fair value 151,964
302,543
Securities, at estimated fair
value 178,932
251,452
Commercial mortgage loans, held for
investment 108,817
109,006
Subordinate loans, held for
investment 179,336
149,086
Repurchase agreements, held for
investment 47,439
47,439
Principal and interest
receivable 5,959
8,075
Deferred
financing costs, net 1,308
2,044
Other
assets 14
17
Total Assets
705,221
$
891,230
$
Liabilities and Stockholders' Equity
Liabilities:
Borrowings under repurchase agreements
355,257
$
290,700
$
TALF Borrowings
-
251,327
Derivative instruments, net
483
478
Accounts payable and accrued expenses
1,126
1,746
Payable
to related party 1,289
1,298
Dividends
payable 8,553
8,703
Deferred
revenue 136
-
Total Liabilities
366,844
554,252
Stockholders' Equity:
Common stock, $0.01 par value, 450,000,000 shares authorized 20,561,032 shares issued and
outstanding in 2012 and 2011, respectively
206
206
Preferred stock, $0.01 par value, 50,000,000 shares authorized and no shares outstanding
-
-
Additional paid-in-capital
337,789
336,209
Accumulated other comprehensive
income 382
563
Total Stockholders' Equity
338,377
336,978
Total Liabilities and Stockholders'
Equity 705,221
$
891,230
$
|
 18
COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)
Consolidated Statement of Operations
2012
2011
Net interest income:
Interest income from securities
5,323
$
6,656
$
Interest income from commercial mortgage loans
2,234
2,313
Interest income from subordinate loans
5,313
1,909
Interest income from repurchase agreements
1,559
60
Interest
expense (3,242)
(3,339)
Net interest income
11,187
7,599
Operating expenses:
General and administrative expenses (includes $1,083 and $351 of non-cash
stock based compensation in 2012 and 2011, respectively)
(2,036)
(1,380)
Management fees to related party
(1,289)
(1,088)
Total operating expenses
(3,325)
(2,468)
Interest income from cash balances
1
5
Realized gain on sale of securities
262
-
Unrealized gain on securities
1,385
$
26
$
Gain (loss) on derivative
instruments (includes $(5) and $459 of unrealized gains (losses) in 2012 and 2011,
respectively) (417)
$
18
$
Net income
9,093
$
5,180
$
Basic and diluted net income per share of common
stock 0.43
$
0.29
$
Basic and diluted weighted average common shares
outstanding 20,966,426
17,551,828
Dividend declared per share of common stock
0.40
$
0.40
$
Three months ended March 31,
|
 19
COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)
Reconciliation of Operating Earnings to Net Income
Three
Months Ended
March 31, 2012
Earnings Per Share
(Diluted)
Three
Months Ended
March 31, 2011
Earnings Per Share
(Diluted)
Operating Earnings:
Net income
$9,093
$0.43
$5,180
$0.29
Adjustments:
Unrealized gains on securities
(1,385)
(0.06)
(26)
-
Unrealized gains on derivative instruments
5
-
(459)
(0.02)
Non-cash stock-based compensation expense
1,083
0.05
351
0.02
Total adjustments:
(297)
(0.01)
(134)
-
Operating Earnings
$8,796
$0.42
$5,046
$0.29
Basic and diluted weighted average common shares outstanding
20,966,426
17,551,828 |