Apollo Commercial Real Estate Finance 8K Entry into a Material Definitive Agreement | ARI 21 Aug 17

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 Year Ended December 31,
	Six Months Ended 6/30/2017			2016			2015			2014			2013			2012
Fixed Charges
Interest-Expensed	$	25,513		$	42,985		$	30,149		$	15,129		$	3,727		$	7,753
Interest-Expensed Convert		7,006			14,011			14,011			8,493			—			—
Interest-Capitalized		5,343			4,043			2,900			8,795			566			597
Interest-Capitalized TALF		—			—			—			—			—			—

Total Fixed Charges	$	37,862		$	61,039		$	47,060		$	32,417		$	4,293		$	8,350
Earnings
Net Income	$	83,360		$	157,875		$	91,372		$	75,300		$	45,045		$	37,102
Less: Equity Investments Income		2,847			96			(3,464	)		157			—			—
Adjusted Net Income		86,207			157,971			87,908			75,457			45,045			37,102
Add Back:
Fixed Charges		37,862			61,039			47,060			32,417			4,293			8,350
Amortization of Capitalized Interest		3,716			6,503			4,700			2,918			866			1,962
Interest Capitalized		(5,343	)		(4,043	)		(2,900	)		(8,795	)		(566	)		(597	)

Total Earnings	$	122,442		$	221,470		$	136,768		$	101,997		$	49,638		$	46,817
Ratio of earnings to fixed charges		3.23	x		3.63	x		2.91	x		3.15	x		11.56	x		5.61	x

-1-

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 Year Ended December 31,
	Six Months Ended 6/30/2017			2016			2015			2014			2013			2012
Fixed Charges
Interest-Expensed	$	25,513		$	42,985		$	30,149		$	15,129		$	3,727		$	7,753
Interest-Expensed Convert		7,006			14,011			14,011			8,493			—			—
Interest-Capitalized		5,343			4,043			2,900			8,795			566			597
Interest-Capitalized TALF		—			—			—			—			—			—
Preferred Stock Dividends		18,620			30,295			11,884			7,440			7,440			3,079

Total Fixed Charges	$	56,482		$	91,334		$	58,945		$	39,857		$	11,733		$	11,428
Earnings
Net Income	$	83,360		$	157,875		$	91,372		$	75,300		$	45,045		$	37,102
Less: Equity Investments Income		2,847			96			(3,464	)		157			—			—
Adjusted Net Income		86,207			157,971			87,908			75,457			45,045			37,102
Add Back:
Fixed Charges		56,482			91,334			58,945			39,857			11,733			11,428
Amortization of Capitalized Interest		3,716			6,503			4,700			2,918			866			1,962
Interest Capitalized		(5,343	)		(4,043	)		(2,900	)		(8,795	)		(566	)		(597	)

Total Earnings	$	141,062		$	251,764		$	148,653		$	109,437		$	57,078		$	49,895
Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends		2.50	x		2.76	x		2.52	x		2.75	x		4.86	x		4.37	x

-2-

Apollo Commercial Real Estate Finance, Inc.

Statement of Computation of Ratio of Pro Forma Ratio of Earnings to Fixed Charges

(in thousands, except ratios)


				For the Year Ended December 31,
	Six Months Ended 6/30/2017			2016			2015			2014			2013			2012
Fixed Charges
Interest-Expensed	$	25,513		$	42,985		$	30,149		$	15,129		$	3,727		$	7,753
Interest-Expensed Convert		7,006			14,011			14,011			8,493			—			—
Interest-Capitalized		5,343			4,043			2,900			8,795			566			597
Interest-Capitalized TALF		—			—			—			—			—			—
Interest Additional – 4.75% Convertible Senior Notes⁽¹⁾		5,200			10,400			NA			NA			NA			NA
Interest Savings – JPMorgan Facility		(3,436	)		(6,872	)

Total Fixed Charges	$	39,626		$	64,567		$	47,060		$	32,417		$	4,293		$	8,350
Earnings
Net Income	$	83,360		$	157,875		$	91,372		$	75,300		$	45,045		$	37,102
Less: Equity Investments Income		2,847			96			(3,464	)		157			—			—
Adjusted Net Income		86,207			157,971			87,908			75,457			45,045			37,102
Add Back:
Fixed Charges		39,626			64,567			47,060			32,417			4,293			8,350
Amortization of Capitalized Interest		3,716			6,503			4,700			2,918			866			1,962
Interest Capitalized		(5,343	)		(4,043	)		(2,900	)		(8,795	)		(566	)		(597	)

Total Earnings	$	124,206		$	224,998		$	136,768		$	101,997		$	49,638		$	46,817
Pro Forma Ratio of earnings to fixed charges⁽²⁾		3.13	x		3.48	x		NA			NA			NA			NA

(1)	Includes deferred financing costs.

(2)

In calculating the pro forma ratios of earnings to fixed charges and 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. For purposes of these pro forma calculations, we have assumed proceeds are used to partially repay outstanding borrowings under our master repurchase agreement with JPMorgan Chase Bank, N.A., or the JP Morgan Facility, (approximately $794.4 million as of June 30, 2017); 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.

-3-

Apollo Commercial Real Estate Finance, Inc.

Statement of Computation of Ratio of Pro Forma Ratio of Earnings to Combined Fixed Charges and

Preferred Stock Dividends

(in thousands, except ratios)


				For the Year Ended December 31,
	Six Months Ended 6/30/2017			2016			2015			2014			2013			2012
Fixed Charges
Interest-Expensed	$	25,513		$	42,985		$	30,149		$	15,129		$	3,727		$	7,753
Interest-Expensed Convert		7,006			14,011			14,011			8,493			—			—
Interest-Capitalized		5,343			4,043			2,900			8,795			566			597
Interest-Capitalized TALF		—			—			—			—			—			—
Preferred Stock Dividends		18,620			30,295			11,884			7,440			7,440			3,079
Interest Additional – 4.75% Convertible Senior Notes⁽¹⁾		5,200			10,400			NA			NA			NA			NA
Interest Savings – JPMorgan Facility		(3,436	)		(6,872	)

Total Fixed Charges	$	58,246		$	94,862		$	58,945		$	39,857		$	11,733		$	11,428
Earnings
Net Income	$	83,360		$	157,875		$	91,372		$	75,300		$	45,045		$	37,102
Less: Equity Investments Income		2,847			96			(3,464	)		157			—			—
Adjusted Net Income		86,207			157,971			87,908			75,457			45,045			37,102
Add Back:
Fixed Charges		56,482			94,862			58,945			39,857			11,733			11,428
Amortization of Capitalized Interest		3,716			6,503			4,700			2,918			866			1,962
Interest Capitalized		(5,343	)		(4,043	)		(2,900	)		(8,795	)		(566	)		(597	)

Total Earnings	$	142,826		$	255,292		$	148,653		$	109,437		$	57,078		$	49,895
Pro Forma Ratio of earnings to fixed charges and Preferred Stock Dividends⁽²⁾		2.45	x		2.69	x		NA			NA			NA			NA

(1)	Includes deferred financing costs.

(2)

In calculating the pro forma ratios of earnings to fixed charges and 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. For purposes of these pro forma calculations, we have assumed proceeds are used to partially repay outstanding borrowings under the JP Morgan Facility, (approximately $794.4 million as of June 30, 2017); 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.

-4-

Apollo Commercial Real Estate Finance (ARI) 8-KEntry into a Material Definitive Agreement