SOURCE: Apollo Commercial Real Estate Finance, Inc.

Apollo Commercial Real Estate Finance, Inc.

March 30, 2010 09:15 ET

Apollo Commercial Real Estate Finance, Inc. Announces Additional Capital Deployment

NEW YORK, NY--(Marketwire - March 30, 2010) -  Apollo Commercial Real Estate Finance, Inc. (the "Company" or "ARI") (NYSE: ARI) announced today that it has completed the origination of a $26.0 million first mortgage secured by a well-located nationally-flagged full-service hotel in the greater Washington D.C. area. The $26.0 million loan is a five-year fixed-rate loan with an interest rate of 9.00% amortizing on a 25-year schedule and represents an approximate loan-to-value of 58%.

The Company also announced the purchase of additional AAA-rated CMBS totaling $104.7 million during March 2010. The securities were financed through the Term Asset-Backed Securities Loan Facility ("TALF") program on March 29, 2009, resulting in loan proceeds of $85.3 million and a net equity investment of $19.4 million. The securities acquired are A2 tranches from four securitizations with a weighted average coupon of 5.6%. The TALF financing is three year non-cross defaulted, non-recourse and non-mark-to-market financing with an interest rate of 2.72%, resulting in a levered current cash yield of approximately 17.9%.

The Company has completed investments totaling $507.7 million and deployed approximately $201.1 million, or approximately 96%, of the equity capital raised in the Company's initial public offering. To date, the Company's portfolio is comprised of the following assets:

  • Newly originated first mortgage loans totaling $86.0 million
  • Newly originated mezzanine loans totaling $50.0 million
  • Commercial mortgage-backed securities ("CMBS") totaling $371.7 million

Stuart Rothstein, Chief Financial Officer of the Company, commented, "We are proud to announce that with the completion of these investments, ARI has fully-deployed the equity capital raised in its initial public offering. ARI has a portfolio of investments that includes assets in each of its target asset classes and expected returns are at or better than original projections."

Mr. Rothstein added, "It is important to note that as we continue to see attractive investment opportunities, the Company's $100 million financing facility will enable the Company to moderately lever the balance sheet and add accretive investments to the portfolio."

About Apollo Commercial Real Estate Finance, Inc.
Apollo Commercial Real Estate Finance, Inc. (NYSE: ARI) is a commercial real estate finance company focused primarily on originating, investing in, acquiring and managing senior performing commercial real estate mortgage loans, CMBS, and other commercial real estate-related debt investments in the U.S. The Company is externally managed and advised by ACREFI Management, LLC, a Delaware limited liability company, an indirect subsidiary of Apollo Global Management, LLC.

Additional information can be found on the Company's website at www.apolloreit.com.

Forward-Looking Statements
This press release may contain statements that are forward-looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission in its rules, regulations and releases. These statements include, but are not limited to, discussions related to ARI's expectations regarding the performance of its business, its liquidity and capital resources and the other non-historical statements in the discussion and analysis. These forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. When used in this release, the words "believe," "anticipate," "estimate," "expect," "intend" and similar expressions are intended to identify forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct.