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Information is as of December 31, 2019, except as otherwise noted.

It should not be assumed that investments made in the future will be profitable or will equal the performance of the investments in this document.

A P O L L O C O M M E R C I A L R E A L E S T A T E F I N A N C E , I N C .

Supplemental Financial Information Q4 2019February 13, 2020

Forward Looking Statements and Other Disclosures

1

This presentation may contain forward-looking statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the SecuritiesExchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. Forward-looking statements are subject to substantial risksand uncertainties, many of which are difficult to predict and are generally beyond management’s control. These forward-looking statements may include information about possible orassumed future results of Apollo Commercial Real Estate Finance, Inc.’s (the “Company,” “ARI,” “we,” “us” and “our”) business, financial condition, liquidity, results of operations, plansand objectives. When used in this presentation, the words “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “should,” “may” or similar expressions, are intendedto identify forward-looking statements. Statements regarding the following subjects, among others, may be forward-looking: ARI’s business and investment strategy; ARI’s operatingresults; ARI’s ability to obtain and maintain financing arrangements; and the return on equity, the yield on investments and risks associated with investing in real estate assets includingchanges in business conditions and the general economy.

The forward-looking statements are based on management’s beliefs, assumptions and expectations of future performance, taking into account all information currently available to ARI.Forward-looking statements are not predictions of future events. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which areknown to ARI. Some of these factors are described under “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included inARI’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and other filings with the Securities and Exchange Commission (“SEC”), which are accessible on theSEC’s website at www.sec.gov. If a change occurs, ARI’s business, financial condition, liquidity and results of operations may vary materially from those expressed in ARI’s forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for management topredict those events or how they may affect ARI. Except as required by law, ARI is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as aresult of new information, future events or otherwise.

This presentation contains information regarding ARI’s financial results that is calculated and presented on the basis of methodologies other than in accordance with accounting principlesgenerally accepted in the United States (“GAAP”), including Operating Earnings and Operating Earnings per share. Please refer to slide 19 for a definition of “Operating Earnings” andthe reconciliation of the applicable GAAP financial measures to non-GAAP financial measures set forth on slide 18.

This presentation may contain statistics and other data that in some cases has been obtained from or compiled from information made available by third-party service providers. ARImakes no representation or warranty, expressed or implied, with respect to the accuracy, reasonableness or completeness of such information.

Past performance is not indicative nor a guarantee of future returns.

Index performance and yield data are shown for illustrative purposes only and have limitations when used for comparison or for other purposes due to, among other matters, volatility,credit or other factors (such as number and types of securities). Indices are unmanaged, do not charge any fees or expenses, assume reinvestment of income and do not employ specialinvestment techniques such as leveraging or short selling. No such index is indicative of the future results of any investment by ARI.

Q4 Highlights

2

See footnotes on page 19

Financial Results

• Net income available to common stockholders of $68.5 million, or $0.42 per diluted share of common stock • Operating Earnings1 of $70.9 million, or $0.46 per diluted share of common stock • Net interest income of $81.4 million • Book value per share of common stock of $16.03

Dividend• Common stock dividend of $0.46 per share in Q4 2019, with an announced dividend of $0.40 per share in Q1 2020• 8.7% annualized yield based upon announced Q1 2020 dividend and closing stock price on February 12, 2020

Loan Originations

• Committed capital to $2.2 billion of commercial real estate loans, $1.2 billion of which was funded during the fourth quarter• Funded $143.3 million for loans closed prior to the fourth quarter• For the full year ended December 31, 2019, committed capital to $4.2 billion of commercial real estate loans, $3.0 billion of which has

been funded

Loan Portfolio• Total loan portfolio of $6.4 billion • Weighted average unlevered all-in yield2,a of 7.4% • 95% of loans have floating interest rates

Capitalization• Entered into a repurchase agreement with Barclays Bank PLC, bringing total financing capacity to $4.3 billion with six counterparties• Total common equity market capitalization3 of $2.8 billion at December 31, 2019

a) Excludes benefit of forward points on currency hedges related to loans denominated in currencies other than USD

Balance Sheet($ in mm, except for per share data) 12/31/19 12/31/18 Change Investments at Amortized Cost, net $6,375 $4,928 29.4%Invested Net Equity at Cost5 3,280 3,031 8.2%Common Stockholders' Equity 2,461 2,168 13.5%Preferred Stockholders' Equity (liquidation preference) 169 342 (50.6%)Convertible Senior Notes, net 562 592 (5.1%)Senior Secured Term Loan, net6 488 - NASecured Debt Arrangements, net7 3,078 1,880 63.7%Debt to Equity8 1.4x 0.9x 0.5xFixed Charge Coverage9 2.5x 2.7x (7.4%)Book Value per share of common stock10 $16.03 $16.20 (1.0%)

Income StatementThree months ended Twelve months ended

($ and shares in mm, except for per share data) 12/31/19 12/31/18 % Change 12/31/19 12/31/18 % Change

Net interest income $81.4 $77.8 4.6% $334.5 $289.3 15.6%

Net income available to common stockholders 68.5 46.2 48.3% 211.6 192.6 9.9%

Diluted weighted average shares of common stock outstanding 182.1 163.9 11.1% 175.8 153.8 14.3%

Net income per diluted share of common stock4 $0.42 $0.34 23.5% $1.40 $1.48 (5.4%)

Operating Earnings1 70.9 61.9 14.5% 268.4 223.4 20.1%Diluted weighted average shares of common stock outstanding –Operating Earnings 155.3 135.5 14.6% 148.7 125.8 18.2%

Operating Earnings1 per diluted share of common stock $0.46 $0.46 0.0% $1.80 $1.78 1.1%Operating Earnings1, excluding realized loss on investments and loss on early extinguishment of debt 70.9 61.9 14.5% 280.9 226.0 24.3%

Operating Earnings1, excluding realized loss on investments and loss on early extinguishment of debt, per diluted share of common stock $0.46 $0.46 0.0% $1.89 $1.80 5.0%

Financial Summary

3


First Mortgage Loans100%

$6,115 $6,375

$1,073 $1,232 ($1,194) $79$1,953

$143

3Q19 Fundings Repayments Other 4Q19

Add-onFunding12

Unfunded Commitment13


New Loans

Q4 Investment Activity

4


Q4 19 Investment Summary Outstanding Portfolio (QTD)

Loans Closed 9

Commitments to New Loans (100% Mortgages) $2,242

Weighted Average Unlevered All-in Yield2,a 5.6%

Weighted Average Loan-to-Value (“LTV”)11 65%

Add-on Fundings12 $143

($ in mm)

14

($ in mm)


$4,928

$6,375

$1,096

$3,019

($2,037)$49

$1,953

$416

4Q18 Fundings Repayments Other 4Q19


Add-onFunding16


New Loans


Subordinate Loans / Other

16%

2019 2018

Loans Closed 26 27

Commitments to New Loans $4,207 $2,972

Weighted Average Unlevered All-in Yield2,a - First Mortgage 5.6% 7.8%

Weighted Average Unlevered All-in Yield2,a -Subordinate 10.6% 10.9%

Weighted Average Loan-to-Value (“LTV”)11 63% 58%

Add-on Fundings16 $416 $281

2019 Investment Activity

5


2019 Investment Summary Outstanding Portfolio (YTD)

($ in mm)

14

($ in mm)

15


Summary of New Investments

Q4 Investment and Repayment Activity

6See footnotes on page 19

• £675.5 million ($877.7 million)17 of a senior mortgage, which is part of a £725.5 million ($942.7 million)17 floating-rate senior mortgage (none of which was funded at closing) for the development of a residential and hotel-led, mixed-use property in Central London, U.K., and £62.2 million ($80.9 million)17 of a mezzanine loan (all of which was funded at closing), which is part of an £124.5 million ($161.7 million)17 floating-rate mezzanine loan. These loans repaid our existing £160.0 million ($208.1 million)17 pre-development loan from 2017 for the same property. Subsequent to quarter end, the £62.2 million mezzanine loan was sold at cost

• £250.0 million ($328.3 million)17 of a £310.0 million floating-rate senior mortgage loan (all of which was funded at closing) secured by a retail and office building on Oxford Circus in Central London, U.K.

• €266.5 million ($295.1 million)17 of a €1.6 billion floating-rate senior mortgage loan (€217.1 million ($241.3 million)17 of which was funded at closing) secured by a portfolio of hotels located throughout Spain

• £195.5 million ($253.4 million)17 of a £251.5 million floating-rate senior mortgage loan (£172.9 million ($224.1 million)17 of which was funded at closing) secured by a portfolio of senior care homes located across the United Kingdom. The loan repaid our £37.6 million ($48.7 million)17 mezzanine loan from 2015

• $150.0 million floating-rate senior mortgage construction loan ($108.2 million of which was funded at closing) secured by a condominium building located in the Beacon Hill section of Boston, MA

• $82.2 million floating-rate senior mortgage condo inventory loan (all of which was funded at closing) secured by a condominium building located on the Upper East Side of New York, NY. A portion of the loan repaid our $25.0 million mezzanine loan from 2017 for the same property

• £59.0 million ($76.6 million)17 floating-rate senior mortgage loan (£57.8 million ($75.1 million)17 of which was funded at closing) secured by a mixed use property in Central London, U.K. The loan repaid our £33.0 million ($42.9 million)17 senior mortgage loan from 2017 for the same property

• $60.0 million floating-rate senior mortgage loan (all of which was funded at closing) secured by a hotel in Tucson, AZ

• £28.7 million ($37.7 million)17 floating-rate senior pre-development loan (£24.0 million ($31.5 million)17 of which was funded at closing) secured by an office and data center complex in Edinburgh, Scotland

Summary of Repayments

• $221.3 million floating-rate senior construction loan secured by an office building in New York, NY

• $210.2 million floating-rate senior mortgage loan secured by a hotel in New York, NY

• Two mezzanine loans aggregating to $152.6 million secured by an urban retail condominium in New York, NY

• $83.4 million floating-rate senior mortgage loan secured by a residential, for-sale condo property in Brooklyn, NY

• $72.2 million floating-rate mezzanine loan secured by a portfolio of water park resorts

• $19.6 million floating-rate mezzanine loan secured by a hotel in Burbank, CA

• $109.7 million in partial repayments (aside from the full loan repayments as part of New Investments above), $109.3 million of which were from first mortgage loans and $0.4 million of which were from subordinate loans


Subordinate Loans32%


Subordinate Loans16%

($ in mm) 12/31/2019 9/30/2019 12/31/2018

Number of Loans 72 Loans 74 Loans 69 Loans

Amortized Cost $6,375 $6,115 $4,928

Invested Net Equity at Cost5 $3,280 $3,555 $3,031

Unfunded Loan Commitments13 $1,953 $1,073 $1,096

Weighted Average Unlevered All-in Yield on Loan Portfolio2,a 7.4% 8.2% 9.3%

Weighted average remaining fully-extended term18 3.3 Years 3.1 Years 2.8 Years

Loan Position by Invested Net Equity at Amortized Cost

Commercial Real Estate Loan Portfolio Overview

7


Loan Position at Amortized Cost

1515


Property Type Manhattan, NY Brooklyn, NYUnited

KingdomOther Europe West Midwest Southeast Other US

Other International

Total

Hotel $315 / 5% - - $375 / 6% $279 / 4% $138 / 2% $305 / 5% $206 / 3% $42 / 1% $1,660 / 26%

Office 414 / 6% - 353 / 6% 191 / 3% 192 / 3% 252 / 4% - - - 1,401 / 22%

Residential-for-sale: construction 480 / 8% - - - 79 / 1% - 27 / 0% 107 / 2% - 693 / 11%

Residential-for-sale: inventory 180 / 3% - 130 / 2% - - - - 12 / 0% - 322 / 5%

Urban Retail 316 / 5% - 328 / 5% - - - - - - 644 / 10%

Urban Predevelopment - 154 / 2% - - 73 / 1% - 183 / 3% - - 410 / 6%

Healthcare - - 227 / 4% - 35 / 1% 26 / 0% 31 / 0% 53 / 1% - 371 / 6%

Multifamily 88 / 1% - 50 / 1% - 58 / 1% 21 / 0% 9 / 0% 6 / 0% 31 / 0% 262 / 4%

Mixed Use - 24 / 0% 187 / 3% - - 42 / 1% 7 / 0% - - 259 / 4%

Industrial - 196 / 3% - - 13 / 0% 10 / 0% 4 / 0% 5 / 0% - 228 / 4%

Retail Center - - - - - 125 / 2% - - - 125 / 2%

Total $1,794 / 28% $374 / 6% $1,274 / 20% $566 / 9% $728 / 11% $614 / 10% $564 / 9% $388 / 6% $73 / 1% $6,375 / 100%

Manhattan, NY, 28%

Brooklyn, NY, 6%

United Kingdom, 20%Other Europe, 9%

West, 11%

Midwest, 10%

Southeast, 9%

Other US, 6% Other International, 1%

Hotel, 26%

Office, 22%Residential-for-sale: construction, 11%

Residential-for-sale: inventory, 5%

Urban Retail, 10%

Urban Predevelopment,

6%

Healthcare, 6%

Other, 14%

Commercial Real Estate Loan Portfolio Diversification

8


Geographic Diversification by Amortized Cost

($ in mm)

19

Property Type by Amortized Cost

a

a

a) Other US includes the following geographies: Southwest, Northeast, and Mid-Atlantic

b

b) Other includes the following property types: Multifamily, Mixed Use, Industrial, Retail Center

Origination Amortized Unfunded Construction Fully-extendedProperty Type Risk rating Date Cost Commitments Loan Maturity LocationUrban Retail 3 12/2019 $328 - 12/2023 London, UKUrban Retail 3 8/2019 316 - 9/2024 Manhattan, NYHotel 3 10/2019 242 54 8/2024 VariousHealthcare 3 10/2019 227 30 10/2024 VariousIndustrial 3 1/2019 196 7 2/2024 Brooklyn, NYOffice 3 6/2019 191 31 11/2026 Berlin, GermanyOffice 3 10/2018 189 11 10/2021 Manhattan, NYOffice 3 9/2019 183 - 9/2023 London, UKUrban Predevelopment 4 1/2016 183 - 9/2021 Miami, FLOffice 3 11/2017 161 - 1/2023 Chicago, ILUrban Predevelopment 3 3/2017 154 11 12/2020 Brooklyn, NYHotel 3 4/2018 151 2 4/2023 Honolulu, HIHotel 3 9/2015 140 - 6/2023 Manhattan, NYHotel 3 5/2018 139 - 6/2023 Miami, FLHotel 3 8/2019 133 - 8/2024 Puglia, ItalyResidential-for-sale: inventory 2 3/2018 130 - 3/2021 London, UKOffice 3 1/2018 127 62 1/2022 Renton, WARetail center 5 11/2014 125 - 9/2020 Cincinnati, OHOffice 3 10/2018 112 74 Y 10/2023 Manhattan, NYResidential-for-sale: construction 3 12/2019 107 42 Y 1/2023 Boston, MAHotel 3 3/2017 105 - 3/2022 Atlanta, GAHotel 3 11/2018 99 - 12/2023 Vail, COHotel 3 12/2017 89 - 12/2022 Manhattan, NYHotel 3 7/2018 87 - 8/2021 Detroit, MIOffice 3 3/2018 84 7 4/2023 Chicago, ILResidential-for-sale: inventory 3 12/2019 82 - 7/2021 Manhattan, NYOffice 3 12/2017 79 48 7/2022 London, UKMixed Use 3 12/2019 76 2 12/2024 London, UKMixed Use 3 12/2019 73 896 Y 6/2025 London, UKUrban Predevelopment 3 12/2016 73 - 6/2020 Los Angeles, CAResidential-for-sale: construction 3 12/2018 70 107 Y 12/2023 Manhattan, NYMultifamily 3 4/2014 70 - 7/2023 VariousHotel 3 8/2019 67 - 9/2022 Manhattan, NYOffice 3 4/2019 65 95 Y 9/2025 Culver City, CAHotel 3 4/2018 63 - 5/2023 Scottsdale, AZHotel 3 9/2019 60 - 10/2024 Miami, FLHotel 3 12/2019 59 - 1/2025 Tuscon, AZMultifamily 3 11/2014 54 - 11/2021 VariousResidential-for-sale: construction 3 1/2018 53 27 Y 1/2023 Manhattan, NYHotel 3 5/2019 52 - 6/2024 Chicago, ILMultifamily 2 6/2018 50 - 6/2020 London, UKHotel 3 12/2015 42 - 8/2024 St. Thomas, USVIHotel 3 2/2018 38 - 3/2023 Pittsburgh, PAResidential-for-sale: inventory 2 6/2018 38 - 6/2020 Manhattan, NYOffice 3 4/2019 31 45 Y 8/2022 Birmingham, UKOffice 3 12/2019 31 6 12/2022 Edinburgh, ScotlandOffice 3 8/2018 27 175 Y 12/2022 London, UKResidential-for-sale: construction 3 12/2018 27 75 Y 1/2024 Hallandale Beach, FLResidential-for-sale: inventory 2 5/2018 24 - 4/2021 Manhattan, NYResidential-for-sale: construction 3 3/2018 13 101 Y 3/2023 San Francisco, CAResidential-for-sale: inventory 5 2/2014 12 - 4/2020 Bethesda, MDSubtotal/W.A. - Senior Loans 3.0 $5,327 $1,908 11% 3.4 Years


Weighted Average All-in Yield2,a on Senior Loans – 6.0%

Senior Loan Portfolio Overview

9

($ in mm)

22

21

22

13 20


$

Origination Amortized Unfunded Construction Fully-extendedProperty Type Risk rating Date Cost Commitments Loan Maturity LocationResidential-for-sale: construction 3 6/2015 $210 - Y 2/2021 Manhattan, NYOffice 3 1/2019 99 - 12/2025 Manhattan, NYResidential-for-sale: construction 3 12/2017 97 17 Y 6/2022 Manhattan, NYHealthcare 3 1/2019 93 - 1/2024 VariousMultifamily 3 10/2015 68 - 3/2020 Manhattan, NYResidential-for-sale: construction 3 12/2017 66 - Y 4/2023 Los Angeles, CAHealthcare 3 7/2019 51 - 6/2024 VariousResidential-for-sale: construction 3 11/2017 51 - Y 2/2021 Manhattan, NYMixed Use 3 1/2017 42 - 2/2027 Cleveland, OHMixed Use 3 2/2019 39 - Y 12/2022 London, UKResidential-for-sale: inventory 2 10/2016 36 - 10/2020 Manhattan, NYIndustrial 2 5/2013 32 - 5/2023 VariousHotel 2 6/2015 24 - 7/2025 Phoenix, AZMixed Use 3 12/2018 24 28 Y 12/2023 Brooklyn, NYHotel 3 6/2015 20 - 12/2022 Washington, DCHotel 3 6/2018 20 - 6/2023 Las Vegas, NVHotel 3 9/2015 20 - 6/2023 Manhattan, NYMultifamily 3 5/2018 19 - 5/2028 Cleveland, OHOffice 2 7/2013 14 - 7/2022 Manhattan, NYHotel 3 5/2017 8 - 6/2027 Anaheim, CAOffice 3 8/2017 8 - 9/2024 Troy, MIMixed Use 3 7/2012 7 - 8/2022 Chapel Hill, NCSubtotal/W.A. - Subordinate Loans and Other Lending Assets 2.9 $1,048 $45 46% 3.1 YearsTotal/W.A. 3.0 $6,375 $1,953 17% 3.3 Years

Subordinate Loan15 Portfolio Overview

10


Weighted Average All-in Yield2,a on Subordinate Loans15 – 14.1%

TOTAL PORTFOLIO WEIGHTED AVERAGE:All-in Yield2,a – 7.4%

($ in mm)

21

23

23

13 20


$

$619

$1,014$1,094

$2,376

$1,702

$1,323

$224

$50 $19

$861

$615

$258$205

$14

2020 2021 2022 2023 2024 2025 2026 2027 2028

Fully Extended Maturity Future Funding

Loan Portfolio Maturity Profile

11


Fully Extended Loan Maturities and Estimated Future Fundings24,25,26($ in mm)

($ in millions, except per share data)

Credit Facilities Capacity W.A. RateW.A.

Maturity Amount27

USD L+2.07% /

GBP L+1.75% /

EUR L+1.36%

Senior Secured Term Loan

Term Loan B 4.87% May 2026 $498

Convertible Notes

2022 Notes 4.75% Aug 2022 $345

2023 Notes 5.38% Oct 2023 230

Total Convertible Debt 5.00% $575

Total Debt $4,169

Preferred Stock

Series B Preferred (callable Sept 2020) 8.00% $169

Common Equity Market CapitalizationStock Price as of 12/31/19 $18.29

Shares Outstanding (in millions) 154

Common Equity Market Capitalization $2,808

Total Capitalization $7,146

SixCounterparties28 $4,331 Sept 202218 $3,096

43%

39%

8%

7%3%

Repo FacilitiesEquity Market CapConvertible NotesTerm Loan BPreferred Stock

Capital Structure Overview

12


Debt to Equity Ratio8: 1.4xFixed Charge Coverage9: 2.5x

~$7.1 Billion Total Capitalization

Capital Structure DetailCapital Structure Composition($ in mm)

29

$2,808

$3,096

$498

$575

$169

a) After September 2020, rate changes to the greater of: 8.00% and a floating rate equal to 3-month LIBOR + 6.46%

a

3

Unallocated Credit

Approved and Undrawn Credit

Capacity

Cash

13


Liquidity($ in mm)

30

3132

Total Available Capital

Total Potential Liquidity

+$0.03+$0.01 $0.00 $0.00 $0.00

+$0.01+$0.03

+$0.06

+$0.09

-1.00% -0.75% -0.50% -0.25% 0.00% 0.25% 0.50% 0.75% 1.00%N

et In

tere

st In

com

e Pe

r Sha

re

Change in USD LIBOR

Interest Rate Sensitivity

14


Rate Profile of Loan Portfolio24 Net Interest Income Sensitivity to USD LIBOR33

LIBOR floors partially offset impact from decline in USD LIBOR

Increasing LIBORincreases earnings

Financials

(in thousands - except share data) December 31, 2019 December 31, 2018Assets:

Cash and cash equivalents $452,282 $109,806Commercial mortgage loans, net (includes $4,852,087 and $3,197,900 pledged as collateral under secured debt arrangements in 2019 and 2018, respectively) 5,326,967 3,878,981Subordinate loans and other lending assets, net 1,048,126 1,048,612Other assets 52,716 33,720Loan proceeds held by servicer 8,272 1,000Derivative assets, net — 23,700

Total Assets $6,888,363 $5,095,819Liabilities and Stockholders' EquityLiabilities:

Secured debt arrangements, net (net of deferred financing costs of $17,190 and $17,555 in 2019 and 2018, respectively) $3,078,366 $1,879,522Convertible senior notes, net 561,573 592,000Senior secured term loan, net (net of deferred financing costs of $7,277 and $0 in 2019 and 2018, respectively) 487,961 —Accounts payable, accrued expenses and other liabilities 100,712 104,746Derivative liabilities, net 19,346 —Payable to related party 10,430 9,804

Total Liabilities 4,258,388 2,586,072Stockholders’ Equity:

Preferred stock, $0.01 par value, 50,000,000 shares authorized:Series B preferred stock, 6,770,393 shares issued and outstanding ($169,260 liquidation preference) 68 68Series C preferred stock, 0 and 6,900,000 shares issued and outstanding ($0 and $172,500 liquidation preference in 2019 and 2018), respectively — 69Common stock, $0.01 par value, 450,000,000 shares authorized, 153,537,296 and 133,853,565 shares issued and outstanding in 2019 and 2018, respectively 1,535 1,339Additional paid-in-capital 2,825,317 2,638,441Accumulated deficit (196,945) (130,170)

Total Stockholders’ Equity 2,629,975 2,509,747Total Liabilities and Stockholders’ Equity $6,888,363 $5,095,819

Consolidated Balance Sheets

16

(in thousands - except share data and per share data) Three months ended Year endedDecember 31,

2019December 31,

2018December 31,

2019December 31,

2018Net interest income:

Interest income from commercial mortgage loans $85,595 $75,275 $322,475 $263,709Interest income from subordinate loans and other lending assets 39,630 34,944 164,933 140,180Interest expense (43,779) (32,413) (152,926) (114,597)

Net interest income $81,446 $77,806 $334,482 $289,292Operating expenses:

General and administrative expenses (includes equity-based compensation of $3,813 and $15,897 in 2019 and $2,184 and $13,588 in 2018, respectively) (5,533) (3,977) (24,097) (20,470)Management fees to related party (10,428) (9,804) (40,734) (36,424)

Total operating expenses ($15,961) ($13,781) ($64,831) ($56,894)

Other income 682 465 2,113 1,438

Provision for loan losses and impairments, net of reversals — (15,000) (20,000) (20,000)

Realized loss on investments — — (12,513) —

Foreign currency gain (loss) 39,830 (6,761) 19,818 (30,335)

Loss on early extinguishment of debt — — — (2,573)Gain (loss) on foreign currency forwards (includes unrealized gains (losses) of $(40,605) and $(28,576) in 2019 and $8,359 and $29,345 in 2018, respectively) (43,044) 10,261 (14,425) 39,058

Unrealized gain (loss) on interest rate swap 8,950 — (14,470) —

Net income $71,903 $52,990 $230,174 $219,986Preferred dividends (3,386) (6,835) (18,525) (27,340)

Net income available to common stockholders $68,517 $46,155 $211,649 $192,646

Net income per basic share of common stock $0.44 $0.34 $1.41 $1.52

Net income per diluted share of common stock $0.42 $0.34 $1.40 $1.48

Basic weighted-average shares of common stock outstanding 153,537,074 133,852,915 146,881,231 124,147,073

Diluted weighted-average shares of common stock outstanding 182,070,345 163,900,633 175,794,896 153,821,515

Dividend declared per share of common stock $0.46 $0.46 $1.84 $1.84

Consolidated Statements of Operations

17

(in thousands - except share and per share data) Three months ended Year ended

Operating Earnings1: December 31, 2019

December 31, 2018

December 31, 2019

December 31,2018

Net income available to common stockholders $68,517 $46,155 $211,649 $192,646Adjustments:

Equity-based compensation expense 3,813 2,184 15,897 13,588Unrealized (gain) loss on interest rate swap (8,950) — 14,470 —(Gain) loss on foreign currency forwards 43,044 (10,261) 14,425 (39,058)Foreign currency (gain) loss, net (39,830) 6,761 (19,818) 30,335Realized gains relating to interest income on foreign currency hedges, net34 290 535 1,904 867Realized gains relating to forward points on foreign currency hedges, net 3,237 635 6,789 1,068Amortization of the convertible senior notes related to equity reclassification 743 934 3,105 3,958Provision for loan losses and impairments, net of reversal — 15,000 20,000 20,000

Total adjustments: 2,347 15,788 56,772 30,758Operating Earnings1 $70,864 $61,943 $268,421 $223,404

Realized loss on investments — — 12,513 —Loss on early extinguishment of debt — — — 2,573

Operating Earnings1 excluding realized loss on investments and loss on early extinguishment of debt $70,864 $61,943 $280,934 $225,976Weighted-average diluted shares - Operating Earnings

Weighted-average diluted shares – GAAP 182,070,345 163,900,633 175,794,896 153,821,515Weighted-average unvested RSUs 1,809,871 1,598,665 1,836,210 1,612,676Reversal of hypothetical conversion of the Notes (28,533,271) (30,047,718) (28,913,665) (29,674,442)

Weighted-average diluted shares - Operating Earnings 155,346,945 135,451,580 148,717,441 125,759,749

Operating Earnings1 Per Share $0.46 $0.46 $1.80 $1.78Operating Earnings,1 excluding realized loss on investments and loss on early extinguishment of debt, Per Share $0.46 $0.46 $1.89 $1.80

Computation of Share Count for Operating Earnings1

Basic weighted-average shares of common stock outstanding 153,537,074 133,852,915 146,881,231 124,147,073

Weighted-average unvested RSUs 1,809,871 1,598,665 1,836,210 1,612,676

Weighted-average diluted shares - Operating Earnings 155,346,945 135,451,580 148,717,441 125,759,749

Reconciliation of GAAP Net Income to Operating Earnings1


18

Footnotes

19

1. Operating Earnings is a non-GAAP financial measure that we define as net income available to common stockholders, computed in accordance with GAAP, adjusted for (i) equity-based compensation expense (a portion of which may become cash-based upon final vesting and settlement of awards should the holder elect net share settlement to satisfy income tax withholding), (ii) any unrealized gains or losses or other non-cash items included in net income available to common stockholders, (iii) unrealized income from unconsolidated joint ventures, (iv) foreign currency gains (losses), other than (a) realized gains/(losses) related to interest income, and (b) forward point gains/(losses) realized on our foreign currency hedges, (v) the non-cash amortization expense related to the reclassification of a portion of our convertible senior notes to stockholders’ equity in accordance with GAAP, and (vi) provision for loan losses and impairments. Please see slide 18 for a reconciliation of GAAP net income to Operating Earnings and Operating Earnings excluding realized loss on investments and loss on early extinguishment of debt. Beginning with the quarter ended December 31, 2018, we modified our definition of Operating Earnings to include the impact from forward points on our foreign currency hedges, which reflect the interest rate differentials between the applicable base rate for our foreign currency investments and USD LIBOR. These forward contracts effectively convert the rate exposure to USD LIBOR, resulting in additional interest income earned in U.S. dollar terms. These amounts may not be included in GAAP net income in the same period as this adjustment. Generally these amounts would be included in prior period GAAP net income as unrealized gains on forward currency contracts.

2. Weighted Average Unlevered All-in Yield on the loan portfolio is based on the applicable benchmark rates as of December 31, 2019 on the floating rate loans and includes accrual of origination, extension, and exit fees. For non-US deals, yield excludes incremental forward points impact from currency hedging.

3. Common equity market capitalization represents shares of common stock outstanding times the closing stock price on December 31, 2019.4. Refer to our 10-K financials for the calculation of our net income per diluted share of common stock.5. Invested Net Equity at Cost is the amortized cost of loans less principal balance of secured debt arrangements; does not include debt secured by proceeds held by servicer.6. Total secured term loan balance less $7,277 at December 31, 2019 in deferred financing costs.7. Total debt balance less $17,190 and $17,555 at December 31, 2019 and December 31, 2018, respectively, in deferred financing costs.8. Represents total debt, less cash and loan proceeds held by servicer divided by total stockholders’ equity.9. Fixed charge coverage is EBITDA divided by interest expense and preferred stock dividends.10. Book value per share of common stock is common stockholders’ equity divided by shares of common stock outstanding.11. Reflects LTV as of date loans were originated or acquired.12. For loans closed prior to Q4 2019.13. Unfunded loan commitments are primarily funded to finance property improvements or lease-related expenditures by the borrowers. These future commitments are funded over the term of each loan, subject in certain cases to an

expiration date.14. Includes foreign currency appreciation/depreciation, PIK interest, loan loss reserves, and the accretion of loan costs and fees.15. Includes two subordinate risk retention interests in securitization vehicles classified as Subordinate Loans.16. For loans closed prior to 2019.17. Conversion to USD on date of funding.18. Assumes exercise of all extension options.19. Amounts and percentages may not foot due to rounding.20. Weighted-average construction loan percentage is based on the amortized cost of the loans.21. Both loans are secured by the same property.22. Amortized cost for these loans is net of the recorded provisions for loan losses and impairments.23. Both loans are secured by the same property.24. Based upon face amount of loans.25. Maturities reflect the fully funded amounts of the loans.26. Future funding dates are based upon the Manager’s estimates based upon the best information available to the Manager at the time. There is no assurance that the payments will occur in accordance with these estimates or at all,

which could affect our operating results.27. Unless otherwise noted, represents outstanding principal balance or liquidation preference.28. Debt balance includes GBP & EUR converted to USD using applicable December 31, 2019 spot rate.29. In connection with the Term Loan B, we entered into a swap to fix LIBOR at 2.12% effectively fixing our all-in coupon at 4.87%. 30. Cash includes loan proceeds held by servicer.31. Represents amounts approved and undrawn under repurchase facilities. While these amounts were previously contractually approved and/or drawn, in certain cases, the lender’s consent is required for us to (re)borrow these amounts. 32. Subject to availability of qualifying collateral assets and approval of lenders.33. Any such hypothetical impact on interest rates on our variable rate borrowings does not consider the effect of any change in overall economic activity that could occur in a rising interest rate environment. Further, in the event of a

change in interest rates of that magnitude, we may take actions to further mitigate our exposure to such a change. However, due to the uncertainty of the specific actions that would be taken and their possible effects, this analysis assumes no changes in our financial structure. The analysis incorporates movements in USD LIBOR only.

34. In order to conform to the 2019 presentation of the reconciliation from net income available to common stockholders to Operating Earnings, $0.5 million and $0.9 million was reclassified from Foreign currency gains, net for the three months and year ended December 31, 2018, respectively.

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