Exhibit 12.1
Apollo Commercial Real Estate Finance, Inc.
Statement of Computation of Ratio of Earnings to Fixed Charges
(in thousands, except ratios)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | For the
six months
ended
June 30, 2014 | | | For the year
ended
December 31,
2013 | | | For the year
ended
December 31,
2012 | | | For the year
ended
December 31,
2011 | | | For the year
ended
December 31,
2010 | | | For the period
September 29,
2009
(commencement
of operations) to
December 31,
2009(1) | |
Fixed Charges | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-Expensed | | $ | 3,840 | | | $ | 3,727 | | | $ | 7,753 | | | $ | 15,416 | | | $ | 10,198 | | | $ | 101 | |
Interest-Capitalized | | $ | 5,122 | | | $ | 566 | | | $ | 597 | | | $ | 680 | | | $ | 3,380 | | | $ | — | |
Interest-Capitalized TALF | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 357 | | | $ | 256 | |
Total Fixed Charges | | $ | 8,962 | | | $ | 4,293 | | | $ | 8,350 | | | $ | 16,095 | | | $ | 13,934 | | | $ | 358 | |
Earnings | | | | | | | | | | | | | | | | | | | | | | | | |
Net Income | | $ | 37,819 | | | $ | 45,045 | | | $ | 37,102 | | | $ | 25,883 | | | $ | 10,999 | | | $ | (2,172 | ) |
Add Back: | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed Charges | | $ | 8,962 | | | $ | 4,293 | | | $ | 8,350 | | | $ | 16,095 | | | $ | 13,934 | | | $ | 358 | |
Amortization of Capitalized Interest | | $ | 662 | | | $ | 866 | | | $ | 1,962 | | | $ | 1,455 | | | $ | 1,173 | | | $ | 2 | |
Less: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest Capitalized | | $ | (5,122 | ) | | $ | (566 | ) | | $ | (597 | ) | | $ | (680 | ) | | $ | (3,737 | ) | | $ | (256 | ) |
Total Earnings (Loss) | | $ | (42,321 | ) | | $ | 49,638 | | | $ | 46,817 | | | $ | 42,753 | | | $ | 22,370 | | | $ | (2,069 | ) |
Ratio of Earnings to Fixed Charges | | | 4.72x | | | | 11.56x | | | | 5.61x | | | | 2.66x | | | | 1.61x | | | | (5.79x | )(2) |
| (1) | The Company was formed on June 29, 2009 and completed the initial public offering of its Common Stock on September 29, 2009. |
| (2) | The coverage deficiency for total fixed charges for this period was approximately $2,400 to arrive at a one-to-one ratio. |
Apollo Commercial Real Estate Finance, Inc.
Statement of Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
(in thousands, except ratios)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | For the
six months
ended
June 30, 2014 | | | For the year
ended
December 31,
2013 | | | For the year
ended
December 31,
2012 | | | For the year
ended
December 31,
2011 | | | For the year
ended
December 31,
2010 | | | For the period
September 29,
2009
(commencement
of operations) to
December 31,
2009(1) | |
Fixed Charges | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-Expensed | | $ | 3,840 | | | $ | 3,727 | | | $ | 7,753 | | | $ | 15,416 | | | $ | 10,198 | | | $ | 101 | |
Interest-Capitalized | | $ | 5,122 | | | $ | 566 | | | $ | 597 | | | $ | 680 | | | $ | 3,380 | | | $ | — | |
Interest-Capitalized TALF | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 357 | | | $ | 256 | |
Preferred Stock Dividends | | $ | 3,720 | | | $ | 7,440 | | | $ | 3,079 | | | $ | — | | | $ | — | | | $ | — | |
Total Fixed Charges | | $ | 12,682 | | | $ | 11,733 | | | $ | 11,428 | | | $ | 16,095 | | | $ | 13,934 | | | $ | 358 | |
Earnings | | | | | | | | | | | | | | | | | | | | | | | | |
Net Income | | $ | 37,819 | | | $ | 45,045 | | | $ | 37,102 | | | $ | 25,883 | | | $ | 10,999 | | | $ | (2,172 | ) |
Add Back: | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed Charges | | $ | 12,682 | | | $ | 11,733 | | | $ | 11,428 | | | $ | 16,095 | | | $ | 13,934 | | | $ | 358 | |
Amortization of Capitalized Interest | | $ | 662 | | | $ | 866 | | | $ | 1,962 | | | $ | 1,455 | | | $ | 1,173 | | | $ | 2 | |
Less: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest Capitalized | | $ | (5,122 | ) | | $ | (566 | ) | | $ | (597 | ) | | $ | (680 | ) | | $ | (3,737 | ) | | $ | (256 | ) |
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| | | | | | | | | | | | | | | | | | | | | | | | |
| | | For the
six months
ended
June 30, 2014 | | | For the year
ended
December 31,
2013 | | | For the year
ended
December 31,
2012 | | | For the year
ended
December 31,
2011 | | | For the year
ended
December 31,
2010 | | | For the period
September 29,
2009
(commencement
of operations) to
December 31,
2009(1) | |
Total Earnings (Loss) | | $ | (46,041 | ) | | $ | 57,078 | | | $ | 49,896 | | | $ | 42,753 | | | $ | 22,370 | | | $ | (2,069 | ) |
Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends | | | 3.63x | | | | 4.86x | | | | 4.37x | | | | 2.66x | | | | 1.61x | | | | (5.79x | )(2) |
| (1) | The Company was formed on June 29, 2009 and completed the initial public offering of its Common Stock on September 29, 2009. |
| (2) | The coverage deficiency for total fixed charges for this period was approximately $2,400 to arrive at a one-to-one ratio. |
Apollo Commercial Real Estate Finance, Inc.
Statement of Computation of Pro Forma Ratio of Earnings to Fixed Charges
(in thousands, except ratios)
| | | | | | | | |
| | | For the
six months
ended
June 30, 2014 | | | For the year
ended
December 31,
2013(1) | |
Fixed Charges | | | | | | | | |
Interest-Expensed | | $ | 3,840 | | | $ | 3,727 | |
Interest-Capitalized | | $ | 5,122 | | | $ | 566 | |
Interest Savings – JPMorgan Facility | | $ | (762 | ) | | $ | (90 | ) |
Interest Additional – 5.50% Convertible Senior Notes due 2019 | | $ | 3,133 | | | $ | 6,265 | |
Total Fixed Charges | | $ | 11,333 | | | $ | 10,468 | |
Earnings | | | | | | | | |
Net Income | | $ | 37,819 | | | $ | 45,045 | |
Add Back: | | | | | | | | |
Fixed Charges | | $ | 11,333 | | | $ | 10,468 | |
Amortization of Capitalized Interest | | $ | 662 | | | $ | 866 | |
Less: | | | | | | | | |
Interest Capitalized | | $ | (5,122 | ) | | $ | (566 | ) |
Total Earnings (Loss) | | $ | 44,692 | | | $ | 55,814 | |
Pro Forma Ratio of Earnings to Fixed Charges | | | 3.94x | | | | 5.33x | |
| (1) | In calculating the pro forma ratio of earnings to fixed charges, we have assumed that the notes were issued on the first day of the applicable period and no exercise by the underwriters of their option to purchase additional notes. For purposes of these pro forma calculations, we have also assumed the repayment of all of our outstanding borrowings under the repurchase facility, or the JPMorgan Facility, with JPMorgan Chase Bank, N.A. (approximately $146.7 million as of June 30, 2014) with the net proceeds from this offering; therefore, the pro forma ratio excludes the effect of the amount of the related interest expense under the JPMorgan Facility for the period. In addition, we have calculated the pro forma ratios incorporating the amortization of the underwriting discount and deferred financing costs as well as cash interest payments that we would have paid on the notes, assuming they were issued on the first day of the applicable period. Accordingly, the pro forma ratios do not reflect the additional interest expense we would incur for accounting purposes as a result of separating the notes into a liability and an equity component and amortizing the deemed debt discount into interest expense over the term of the notes in accordance with ASC 470-20. |
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Apollo Commercial Real Estate Finance, Inc.
Statement of Computation of Pro Forma Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
(in thousands, except ratios)
| | | | | | | | |
| | | For the
six months
ended
June 30, 2014 | | | For the year
ended
December 31,
2013(1) | |
Fixed Charges | | | | | | | | |
Interest-Expensed | | $ | 3,840 | | | $ | 3,727 | |
Interest-Capitalized | | $ | 5,122 | | | $ | 566 | |
Preferred Stock Dividends | | $ | 3,720 | | | $ | 7,440 | |
Interest Savings – JPMorgan Facility | | $ | (762 | ) | | $ | (90 | ) |
Interest Additional – 5.50% Convertible Senior Notes due 2019 | | $ | 3,133 | | | $ | 6,265 | |
Total Fixed Charges | | $ | 15,053 | | | $ | 17,908 | |
Earnings | | | | | | | | |
Net Income | | $ | 37,819 | | | $ | 45,045 | |
Add Back: | | | | | | | | |
Fixed Charges | | $ | 15,053 | | | $ | 17,908 | |
Amortization of Capitalized Interest | | $ | 662 | | | $ | 866 | |
Less: | | | | | | | | |
Interest Capitalized | | $ | (5,122 | ) | | $ | (566 | ) |
Total Earnings (Loss) | | $ | 48,412 | | | $ | 63,253 | |
Pro Forma Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends | | | 3.22x | | | | 3.53x | |
| (1) | In calculating the pro forma ratio of earnings to combined fixed charges and preferred stock dividends, we have assumed that the notes were issued on the first day of the applicable period and no exercise by the underwriters of their option to purchase additional notes. For purposes of these pro forma calculations, we have also assumed the repayment of all of our outstanding borrowings under the JPMorgan Facility (approximately $146.7 million as of June 30, 2014) with the net proceeds from this offering; therefore, the pro forma ratio excludes the effect of the amount of the related interest expense under the JPMorgan Facility for the period. In addition, we have calculated the pro forma ratios incorporating the amortization of the underwriting discount and deferred financing costs as well as cash interest payments that we would have paid on the notes, assuming they were issued on the first day of the applicable period. Accordingly, the pro forma ratios do not reflect the additional interest expense we would incur for accounting purposes as a result of separating the notes into a liability and an equity component and amortizing the deemed debt discount into interest expense over the term of the notes in accordance with ASC 470-20. |
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