EX-12.1 3 d172997dex121.htm EX-12.1

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 |
|  | $ | 46,201 |  |  | $ | 44,215 |
Net income/(loss) (from continuing operations) |  | $ | (11,595 | )(1) |  | $ | 96,055 | (2)
Fixed charges |  |  | 46,201 |  |  |  | 44,215 |
Earnings as adjusted |  | $ | 34,606 |  |  | $ | 140,270 |
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.