Exhibit 12.1
Apollo Commercial Real Estate Finance, Inc. Ratio of Earnings to Combined Fixed Charges
(in thousands, except ratios)
For the year ended December 31, | ||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||
Fixed Charges | ||||||||||||||||||||
Interest-Expensed | $ | 30,149 | $ | 15,123 | $ | 3,727 | $ | 7,753 | $ | 15,416 | ||||||||||
Interest-Expensed Convert | $ | 14,011 | $ | 8,493 | $ | — | $ | — | $ | — | ||||||||||
Interest-Capitalized | $ | 2,900 | $ | 8,795 | $ | 566 | $ | 597 | $ | 680 | ||||||||||
Interest-Capitalized TALF | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Preferred Dividends | $ | 11,884 | $ | 7,440 | $ | 7,440 | $ | 3,079 | $ | — | ||||||||||
Total Fixed Charges | $ | 58,945 | $ | 39,857 | $ | 11,733 | $ | 11,428 | $ | 16,095 | ||||||||||
Earnings | ||||||||||||||||||||
Net Income | $ | 91,372 | $ | 75,300 | $ | 45,045 | $ | 37,102 | $ | 25,883 | ||||||||||
Less: Equity Investments Income | $ | (3,464 | ) | $ | 157 | — | — | — | ||||||||||||
Adjusted Net Income | $ | 87,908 | $ | 75,457 | $ | 45,045 | $ | 37,102 | $ | 25,883 | ||||||||||
Add Back: | ||||||||||||||||||||
Fixed Charges | $ | 58,945 | $ | 39,857 | $ | 11,733 | $ | 11,428 | $ | 16,095 | ||||||||||
Amortization of Capitalized Interest | $ | 4,700 | $ | 2,918 | $ | 866 | $ | 1,962 | $ | 1,455 | ||||||||||
Less: | ||||||||||||||||||||
Interest Capitalized | $ | (2,900 | ) | $ | (8,795 | ) | $ | (566 | ) | $ | (597 | ) | $ | (680 | ) | |||||
Total Earnings | $ | 148,653 | $ | 109,437 | $ | 57,078 | $ | 49,896 | $ | 42,753 | ||||||||||
Ratio of Earnings to Fixed Charges | 2.91x | 3.15x | 11.56x | 5.61x | 2.66x | |||||||||||||||
Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends | 2.52x | 2.75x | 4.86x | 4.37x | 2.66x |
Apollo Residential Mortgage, Inc.
Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
(Dollars in thousands) | For the Year Ended December 31, | |||||||
2015 | 2014 | |||||||
Fixed Charges: | ||||||||
Interest expense on repurchase agreement borrowings | $ | 30,984 | $ | 28,746 | ||||
Expenses capitalized as deferred financing costs in the period, net of amortization | 43 | 29 | ||||||
Interest expense on securitized debt | 1,374 | 1,640 | ||||||
Preferred stock dividends | 13,800 | 13,800 | ||||||
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$ | 46,201 | $ | 44,215 | |||||
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Net income/(loss) (from continuing operations) | $ | (11,595 | )(1) | $ | 96,055 | (2) | ||
Fixed charges | 46,201 | 44,215 | ||||||
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Earnings as adjusted | $ | 34,606 | $ | 140,270 | ||||
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Ratio of earnings to combined fixed charges and preferred stock dividends(3) | 0.75 | x | 3.17 | x |
(1) | Includes realized gain on sales of residential mortgage-backed securities, net of $16,998, realized gain on sales of other investment securities of $102 and other than temporary impairments of $12,089. The deficiency in the earnings to fixed charges ratio was driven by $76,345 of net unrealized losses recognized in earnings, comprised of the following: (i) unrealized net loss on residential mortgage-backed securities of $64,027; (ii) unrealized net gain on securitized debt of $1,031; (ii) unrealized loss on securitized mortgage loans of $1,958; (iv) unrealized loss of $6,376 on other investment securities; and (v) unrealized loss on derivative instruments of $5,015. |
(2) | Includes realized net loss on sale of residential mortgage-backed securities of $8,821 and other than temporary impairments of $14,891. In addition, includes unrealized net gain on residential mortgage-backed securities of $102,942; unrealized net loss on securitized debt of $124; unrealized gain on securitized mortgage loans of $4,813, unrealized loss of $9 on mortgage loans, unrealized loss of $96 on other investment securities and unrealized loss on derivative instruments of $39,379. |
(3) | For the year ended December 31, 2015, earnings, as adjusted, were not sufficient to cover fixed charges and preferred dividends, reflecting a deficiency of $11,595. This deficiency was driven by net unrealized losses, as discussed in note (1) above. |