Information is as of June 30, 2020, 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 .

Q2 2020 Financial Results

July 30, 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: the macro- and micro-economic impact of the COVID-19pandemic; the severity and duration of the COVID-19 pandemic; actions taken by governmental authorities to contain the COVID-19 pandemic or treat its impact; the impact of theCOVID-19 pandemic on our financial condition, results operations, liquidity and capital resources; ARI’s business and investment strategy; ARI’s operating results; ARI’s ability to obtainand maintain financing arrangements; the timing and amounts of expected future fundings of unfunded commitments; and the return on equity, the yield on investments and risksassociated with investing in real estate assets including changes 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, Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2020 and June 30, 2020 andother filings with the Securities and Exchange Commission (“SEC”), which are accessible on the SEC’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 ismade. New risks and uncertainties arise over time, and it is not possible for management to predict those events or how they may affect ARI. Except as required by law, ARI is notobligated to, and does not intend to, update or revise any forward-looking statements, whether as a result 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 page 18 for a definition of “Operating Earnings” andthe reconciliation of the applicable GAAP financial measures to non-GAAP financial measures set forth on page 17.

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.

Unless the context requires otherwise, references in this presentation to “Apollo” refer to Apollo Global Management, Inc., together with its subsidiaries, and references in this presentationto the “Manager” refer to ACREFI Management, LLC, an indirect subsidiary of Apollo Global Management, Inc.

Liquidity

Summary Results

2

See footnotes on page 18a) Excludes benefit of forward points on currency hedges related to loans denominated in currencies other than USD

$511 millionCurrent Liquidity

Financial Results

Capitalization

Loan Portfolio

1.7xDebt-to-Equity Ratio1

$1.0 billionCurrent Unencumbered Loan Assets2

Net interest income of $70.8 million

Net income available to common stockholders of $56.8 million, or $0.36 per diluted share of common stock

Operating Earnings3 excluding realized loss on investments and interest rate swap of $59.0 million, or $0.38per diluted share of common stock

Declared a common stock dividend of $0.35 per share for Q2 2020, resulting in a 92% payout ratio

Refinanced existing secured credit facility with Barclays into a private securitization with $782 million of senior notes outstanding

Repurchased a total of 5.5 million shares of common stock for $43.8 million at a weighted average price of $7.96 per share

Long duration liabilities with nearest corporate debt maturity of August 2022

Total loan portfolio of $6.4 billion

Weighted average unlevered all-in yield4,a of 6.7%

95% of loans have floating interest rates

90% of US floating-rate loans have in-the-money LIBOR floors

Ended quarter with $487 million in cash on hand and $31 million of approved and undrawn credit capacity

Sold three construction loans, generating $122 million in proceeds and eliminating over $250 million of future funding obligations

As of July 29, 2020, $480 million of cash on hand and $31 million of approved and undrawn credit capacity

As of July 29, 2020, unencumbered loan assets of $1.0 billion

Income Statement

($ and shares in millions, except for per share data)

Net interest income

Net income available to common stockholders

Net income per diluted share of common stock5

Operating Earnings3 excluding realized loss on investments and interest rate swap

Operating Earnings3 excluding realized loss on investments and interest rate swap perdiluted share of common stock

Financial Summary

3

See footnotes on page 18

Book Value per Share6 Roll Forward

Three Months ended June 30, 2020

$70.8

56.8

$0.36

59.0

$0.38

BVPS excludingBVPS General CECL Reserve General CECL Reserve

3/31/2020 $14.52 ($0.42) $14.94

Changes:

(+) Impact of share repurchases $0.24 - $0.24

(-) Interest rate hedging instruments ($0.02) - ($0.02)

(-) Specific CECL reserve ($0.04) - ($0.04)

Change in General CECL reserve $0.11 $0.11 -

Change during quarter $0.29 $0.11 $0.18

6/30/2020 $14.81 ($0.31) $15.12

a) Excludes loans on non-accrualb) Conversion to USD on date of fundingc) Assuming 1-Month LIBOR is held at current levels

Business Update

4

Portfolio Update

Strong second quarter collections of interest payments due (99.8%a received) with July expected to be 99.8%a

Completed $112.0 million of add-on fundings during the quarter

Sold three construction loans to entities managed by affiliates of the Manager during the quarter at a weighted average price of ~97.7% of par; generated $122 millionb of liquidity, eliminated over $250 million of future funding commitments, and recorded a realized loss of $1.4 million

In July, sold a £97.5 million mortgage loan secured by a residential for-sale property in London, UK to a third party; resulted in net sale proceeds of $36.6 millionb (99.5% of par) after repayment of associated Credit Suisse secured credit facility

Continue to maintain constructive, ongoing dialogue with borrowers

• A sponsor of a NYC hotel loan recently contributed ~$15 million of cash equity to cover shortfalls; ARI simultaneously reduced the loan amount by $15 million to $143 million, in line with previously recorded reserves; the loan was upgraded from a risk rating of 5 to 3

Pro-Active Capital

Management

Continue to maintain strong liquidity position; ended quarter with $487 million in cash on hand, $31 million of approved and undrawn credit capacity, and $1.1 billion of unencumbered loan assets

Repurchased a total of 5.5 million shares of common stock for $43.8 million at a weighted average price of $7.96 per share

Refinanced existing secured credit facility with Barclays into a private securitization with $782 million of senior notes outstanding; key features include:

‒ Elimination of daily margining provisions; annual (third-party) credit valuations with increased LTVcushion

‒ LTV covenant holiday for six months through December 2020

Terminated interest rate swap with notional amount of $500 million, resulting in interest expense savings of ~$10 million per annumc

($ in millions, except per share data)

Secured Debt Obligations CapacityW.A.

Advance W.A. RateW.A.

Maturity Amount

Credit Facilities $3,615 $2,658Private Securitization 782 782

USD 64% USD L+2.13%

GBP 69% GBP L+1.87%

EUR 62% EUR L+1.46%

Senior Secured Term Loan

Term Loan B L+2.75% May 2026 $495

Convertible Notes

2022 Notes 4.75% Aug 2022 $345

2023 Notes 5.38% Oct 2023 230

Total Convertible Debt 5.00% $575

Total Debt $4,510

Preferred Stock

Series B Preferred (Callable Sept. 2020) 8.00% $169

Book Value Capitalization

Book Value per share as of 6/30/20 (excl. General CECL Reserve) $15.12

Shares of Common Stock Outstanding (in millions) 148

Common Equity Book Value Capitalization $2,243

Total Capitalization $6,922

Total Secured Debt Obligations $4,397 May 2023 $3,440

Capital Structure Overview

5

See footnotes on page 18

Capital Structure DetailCapital Structure Composition

($ in mm)

$2,243

$3,440

$495

$575

$169

10

11

9

12

~65%W.A. Advance Rate AcrossSecured Debt Obligations

1.7xDebt to Equity Ratio1

2.3xFixed Charge Coverage7

Secured Debt Obligations

Common Equity Book Value

Convertible Notes

Term Loan B

Preferred Stock

a) Book Value per share as of 6/30/20 including General CECL Reserve was $14.81

8

a

50%

32%

8%

7%3%

6

See footnotes on page 18

Liquidity($ in mm)

Cash on hand Approved & Undrawn Credit Capacity

a) Represents amounts approved and undrawn under secured credit 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

a

Additional Sources of Liquidity

Operating cash flow

$1.0 billion of unencumbered loan assets

Loan repayments and amortization($1.4 billion of final maturities through 202110)

Liquidity as of 3/31/20

Current Liquidityas of 7/29/20

Liquidity as of 6/30/2012

$582

$487 $480

$8

$31 $31

$590

$519 $511

Q2 Repayment Activity & Subsequent Events

7

See footnotes on page 18

Summary of Repayments

and Sales

Subsequent Events

£36.8 million ($45.4 million)14 repayment of a floating-rate mortgage loan secured by a multifamily property in London, UK

Sold three construction loans to entities managed by affiliates of the Manager during the quarter at a weighted average price of ~97.7% of par; generated $122 million14 of liquidity, eliminated over $250 million of future funding commitments, and recorded a realized loss of $1.4 million

$19.1 million in partial loan repayments from a combination of deleveraging and condo sales proceeds

In July, sold a £97.5 million mortgage loan secured by a residential for-sale property in London, UK to a third party; resulting in net sale proceeds of $36.6 million14 (99.5% of par) after repayment of associated Credit Suisse secured credit facility

In July, refinanced an existing $68.0 million mezzanine loan into $68.0 million of a $110.8 million mortgage loan, and subsequently financed the unencumbered loan asset, resulting in proceeds of $44.2 million

$26.7 million in add-on fundings, $24.7 million of which were for mortgage loans and $2.0 million of which were for subordinate loans, with $9.0 million in expected secured credit facility advances (34% of fundings)a

a) Subject to, in certain cases, approval of lender

First Mortgage64%

Subordinate36%

First Mortgage83%

Subordinate17%

($ in mm) 6/30/2020 3/31/2020

Number of Loans 71 Loans 75 Loans

Total Investments, net $6,388 $6,431

Invested Net Equity, at Cost16 $2,948 $2,874

Weighted Average Unlevered All-in Yield on Loan Portfolio4,a 6.7% 6.7%

Weighted Average Remaining Fully-Extended Term13 3.1 Years 3.3 Years

Weighted Average Portfolio Risk Rating13 3.1 3.1

Loan Position by Invested Net Equity at Amortized Cost

Loan Portfolio Overview

8

See footnotes on page 18

Loan Position at Amortized Cost

1515

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

Property Type New York City United Kingdom West Other Europe Midwest Southeast Other USa Other

InternationalTotal

Office $612 / 10% $485 / 8% $218 / 3% $195 / 3% $253 / 4% - - - $1,764 / 27%

Hotel 301 / 5% - 280 / 4% 382 / 6% 52 / 1% 305 / 5% 190 / 3% 42 / 1% 1,551 / 24%

Residential-for-sale: construction 533 / 8% - 70 / 1% - - 52 / 1% 128 / 2% - 783 / 12%

Residential-for-sale: inventory 158 / 2% 121 / 2% - - - - 3 / 0% - 282 / 4%

Urban Retail 316 / 5% 307 / 5% - - - - - - 623 / 10%

Healthcare - 211 / 3% 35 / 0% - 26 / 0% 31 / 0% 53 / 1% - 355 / 5%

Urban Predevelopment 127 / 2% - 53 / 1% - - 115 / 2% - - 294 / 5%

Other 312 / 5% 112 / 2% 70 / 1% - 226 / 3% 19 / 0% 10 / 0% 30 / 0% 779 / 12%

Total $2,359 / 37% $1,237 / 19% $726 / 11% $577 / 9% $557 / 9% $522 / 8% $384 / 6% $72 / 1% $6,432 / 100%

General CECL Reserve $45

Total Investments, net $6,388

New York City37%

West11%

Midwest9%

Southeast8%

Southwest3%

Northeast2%

Loan Portfolio Diversification

9

See footnotes on page 18

($ in mm)

12

a) Other US includes the following geographies: Southwest (3%), Northeast (2%), and Mid-Atlantic (1%)b) Other property types include the following property types: Multifamily (4%), Industrial (4%), Mixed Use (3%), and Retail Center (1%)

Note: Map does not show locations where percentages are 1% or lower Italy2%

United Kingdom

19%

Spain4%

Germany3%

b

Origination Amortized Unfunded Construction 3rd Party Fully-extendedOffice Date Cost Commitments Loan Subordinate Debt Maturity LocationLoan 1 2/2020 $207 $- 2/2025 London, UKLoan 2 10/2018 196 4 10/2021 Manhattan, NYLoan 3 6/2019 195 28 11/2026 Berlin, GermanyLoan 4 1/2020 174 113 Y 2/2025 Long Island City, NYLoan 5 9/2019 172 - 9/2023 London, UKLoan 6 11/2017 155 - 1/2023 Chicago, ILLoan 7 1/2018 132 58 Y 1/2022 Renton, WALoan 8 10/2018 129 57 Y 10/2023 Manhattan, NYLoan 9 3/2018 91 - Y 4/2023 Chicago, ILLoan 10 4/2019 86 73 Y 9/2025 Culver City, CALoan 11 12/2017 74 45 Y 7/2022 London, UKLoan 12 12/2019 32 3 12/2022 Edinburgh, ScotlandSubtotal/W.A. - Office $1,643 $381

HotelLoan 13 10/2019 $248 $50 Y 8/2024 Various, SpainLoan 14 4/2018 152 1 4/2023 Honolulu, HILoan 15 9/2015 144 - 6/2024 Manhattan, NYLoan 16 5/2018 140 - 6/2023 Miami, FLLoan 17 8/2019 134 - 8/2024 Puglia, ItalyLoan 18 3/2017 105 - 3/2022 Atlanta, GALoan 19 11/2018 100 - 12/2023 Vail, COLoan 20 12/2017 90 - 12/2022 Manhattan, NYLoan 21 8/2019 67 - Y 9/2022 Manhattan, NYLoan 22 4/2018 64 - 5/2023 Scottsdale, AZLoan 23 9/2019 60 - 10/2024 Miami, FLLoan 24 12/2019 60 - 1/2025 Tucson, AZLoan 25 5/2019 52 - 6/2024 Chicago, ILLoan 26 12/2015 42 - 8/2024 St. Thomas, USVILoan 27 2/2018 29 - Y 3/2023 Pittsburgh, PASubtotal/W.A. - Hotel $1,485 $51

See footnotes on page 18

Senior Loan Portfolio Overview (Page 1 of 2)

10

($ in mm)

17

10, 13

Origination Amortized Unfunded Construction 3rd Party Fully-extendedRetail Date Cost Commitments Loan Subordinate Debt Maturity LocationLoan 28 8/2019 $316 $- Y 9/2024 Manhattan, NYLoan 29 12/2019 307 - 12/2023 London, UKLoan 30 11/2014 103 - 9/2020 Cincinnati, OHSubtotal/W.A. - Retail $726 -

Residential-for-sale: constructionLoan 31 12/2019 $128 $21 Y Y 1/2023 Boston, MALoan 32 12/2018 70 107 Y Y 12/2023 Manhattan, NYLoan 33 1/2018 65 15 Y Y 1/2023 Manhattan, NYLoan 34 12/2018 52 50 Y 1/2024 Hallandale Beach, FLSubtotal/W.A. - Residential-for-sale: construction $316 $193

Residential-for-sale: inventoryLoan 35 3/2018 $121 $- 3/2021 London, UKLoan 36 12/2019 82 - 7/2021 Manhattan, NYLoan 37 5/2018 24 - Y 3/2021 Manhattan, NYLoan 38 6/2018 16 - Y 7/2021 Manhattan, NYLoan 39 2/2014 3 - 4/2021 Bethesda, MDSubtotal/W.A. - Residential-for sale: inventory $246 -

Urban PredevelopmentLoan 40 3/2017 $127 $- 12/2020 Brooklyn, NYLoan 41 1/2016 115 - 9/2021 Miami, FLLoan 42 12/2016 53 - 6/2022 Los Angeles, CASubtotal/W.A. - Urban Predevelopment $294 -

MultifamilyLoan 43 4/2014 $68 $- 7/2023 VariousLoan 44 11/2014 54 - 11/2021 VariousLoan 45 2/2020 50 1 3/2024 Cleveland, OHSubtotal/W.A. - Multifamily $172 $1

OtherLoan 46 - Healthcare 10/2019 $211 $28 10/2024 Various, UKLoan 47 - Industrial 1/2019 196 7 2/2024 Brooklyn, NYLoan 48 - Mixed Use 12/2019 72 1 12/2024 London, UKLoan 49 - Mixed Use 12/2019 4 764 Y Y 6/2025 London, UKSubtotal/W.A. - Other $484 $800

Total/W. A. - First Mortgage $5,366 $1,426 3.2 Years

See footnotes on page 18

Senior Loan Portfolio Overview (Page 2 of 2)

11

($ in mm)10, 13

17

17

17

12

17

a) Loan was sold subsequent to quarter end

a

Origination Amortized Unfunded Construction 3rd Party Fully-extendedResidential-for-sale: construction Date Cost Commitments Loan Subordinate Debt Maturity LocationLoan 1 6/2015 $222 $- Y Y 12/2020 Manhattan, NYLoan 2 12/2017 104 13 Y Y 6/2022 Manhattan, NYLoan 3 12/2017 70 - Y 4/2023 Los Angeles, CALoan 4 11/2017 71 - Y Y 12/2020 Manhattan, NYSubtotal/W.A. - Residential $468 $13

HealthcareLoan 5 1/2019 $76 $- 1/2024 VariousLoan 6 7/2019 51 - Y 6/2024 VariousLoan 7 2/2019 17 - Y 1/2034 VariousSubtotal/W.A. - Healthcare $144 -

OfficeLoan 8 1/2019 $100 $- 12/2025 Manhattan, NYLoan 9 7/2013 14 - 7/2022 Manhattan, NYLoan 10 8/2017 8 - 9/2024 Troy, MISubtotal/W.A. - Office $121 -

Mixed UseLoan 11 1/2017 $42 $- 2/2027 Cleveland, OHLoan 12 2/2019 36 - Y 12/2022 London, UKLoan 13 12/2018 27 24 Y 12/2023 Brooklyn, NYLoan 14 7/2012 7 - 8/2022 Chapel Hill, NCSubtotal/W.A. - Mixed Use $112 $24

MultifamilyLoan 15 10/2015 $69 $- 4/2021 Manhattan, NYLoan 16 5/2018 19 - 5/2028 Cleveland, OHSubtotal/W.A. - Multifamily $88 -

HotelLoan 17 6/2015 $24 $- 7/2025 Phoenix, AZLoan 18 6/2018 20 - 6/2023 Las Vegas, NVLoan 19 6/2015 13 - 12/2022 Washington, DCLoan 20 5/2017 8 - 6/2027 Anaheim, CASubtotal/W.A. - Hotel $66 -

OtherLoan 21 - Residential-for-sale: inventory 10/2016 $36 $- 10/2020 Manhattan, NYLoan 22 - Industrial 5/2013 32 - 5/2023 VariousSubtotal/W.A. - Other $68 -

Total/W.A. - Subordinate $1,066 $37 2.7 Years

Total/W.A. - Portfolio $6,432 $1,463 3.1 YearsGeneral CECL Reserve $45Total Investments, net $6,388

Subordinate Loan15 Portfolio Overview

12

a) In the form of a single-asset, single-borrower CMBSb) Refinanced into a mortgage loan subsequent to quarter end

($ in mm)

See footnotes on page 18

17

a

a

18

18

12

12

10, 13

12

b

($55)

($34)$1

$180

$92

Expected Net FutureFundings from Prior

Reporting (as of05/07/20)

May - July ActualFundings (net of securedcredit facility advances)

Eliminated FundingObligations from Loan

Sale

Changes in estimates Expected Net FutureFundings from Current

Reporting

Future Fundings and Maturities Profile

13

See footnotes on page 18

Fully Extended Loan Maturities10

($ in mm)

Expected Future Fundings12,19

Rest of Year Net Future Funding Roll Forward (as of July 30th)a

Expected future fundings after 2020:

2021: ~$688 million in gross future fundings (98% Mortgage / 2% Mezzanine)

2022 & Beyond: ~$402 million in gross future fundings (99% Mortgage / 1% Mezzanine)

a) Net of expected secured credit facility advances and carry costs in the form of interest (net of advances) payable to ARIb) Represents future funding obligations associated with our remaining interest in a UK construction loan that was sold prior to quarter end

b

($ in mm)

$652 $760 $856

$2,062$1,857 $1,912

2020 2021 2022 2023 2024 2025 and beyond

Appendix

14

(in thousands - except share data) June 30, 2020 December 31, 2019f

Assets:Cash and cash equivalents $487,165 $452,282Commercial mortgage loans, net a,b 5,343,437 5,326,967Subordinate loans and other lending assets, net b 1,044,400 1,048,126Derivative assets, net 49,294 —Other assets 45,218 52,716Loan proceeds held by servicer — 8,272

Total Assets $6,969,514 $6,888,363Liabilities and Stockholders' EquityLiabilities:

Secured debt arrangements, net (net of deferred financing costs of $15,079 and $17,190 in 2020 and 2019, respectively) $3,425,098 $3,078,366Convertible senior notes, net 563,583 561,573Senior secured term loan, net (net of deferred financing costs of $7,737 and $7,277 in 2020 and 2019, respectively) 485,179 487,961Accounts payable, accrued expenses and other liabilities c 120,190 100,712Payable to related party 9,958 10,430Derivative liabilities — 19,346

Total Liabilities $4,604,008 $4,258,388Stockholders’ 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 $68Common stock, $0.01 par value, 450,000,000 shares authorized, 148,326,806 and 153,537,296 shares issued and outstanding in 2020 and 2019, respectively 1,483 1,535Additional paid-in-capital 2,781,111 2,825,317Accumulated deficit (417,156) (196,945)

Total Stockholders’ Equity $2,365,506 2,629,975Total Liabilities and Stockholders’ Equity $6,969,514 $6,888,363

Consolidated Balance Sheets

15

a) Includes $5,330,380 and $4,852,087 pledged as collateral under secured debt arrangements in 2020 and 2019, respectivelyb) Net of $242,025 CECL Allowance in 2020, comprised of $197,481 Specific CECL Allowance and $44,544 General CECL Allowance. Net of $56,981 provision for loan loss in 2019c) Includes $4,119 of General CECL Allowance related to unfunded commitments on our loans in 2020

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

June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019

Net interest income:

Interest income from commercial mortgage loans $75,641 $77,458 $157,496 $155,744

Interest income from subordinate loans and other lending assets 32,616 41,043 66,634 81,882

Interest expense (37,498) (33,511) (78,703) (69,806)

Net interest income $70,759 $84,990 $145,427 $167,820

Operating expenses:General and administrative expenses (includes equity-based compensation of $4,252 and $8,515 in 2020 and $4,294 and $8,195 in 2019, respectively) (6,425) (6,574) (12,956) (12,725)

Management fees to related party (9,957) (10,259) (20,225) (19,872)

Total operating expenses ($16,382) ($16,833) ($33,181) ($32,597)

Other income 591 484 1,351 1,002

Realized loss on investments (16,405) (12,513) (16,405) (12,513)

Reversal of (provisions for) loan losses a 25,169 15,000 (158,296) 15,000

Foreign currency translation gain (loss) 2,559 (7,777) (35,390) (883)Gain (loss) on foreign currency forward contracts (includes unrealized gains (losses) of $9,004 and $53,432 in 2020 and $10,787 and ($4,198) in 2019, respectively) (2,995) 11,186 67,496 4,466Loss on interest rate hedging instruments (includes unrealized gains (losses) of $50,756 and $15,208 in 2020 and ($13,113) in 2019, respectively) b (3,095) (13,113) (38,643) (13,113)

Net income (loss) $60,201 $61,424 ($67,641) $129,182

Preferred dividends (3,385) (4,919) (6,770) (11,754)

Net income (loss) available to common stockholders $56,816 $56,505 ($74,411) $117,428

Net income (loss) per basic share of common stock $0.37 $0.38 ($0.50) $0.83

Net income (loss) per diluted share of common stock $0.36 $0.37 ($0.50) $0.80

Basic weighted-average shares of common stock outstanding 151,523,513 145,567,963 152,735,852 140,117,813

Diluted weighted-average shares of common stock outstanding 182,083,702 174,101,234 152,735,852 169,418,177

Dividend declared per share of common stock $0.35 $0.46 $0.75 $0.92

Consolidated Statements of Operations

16

a) Comprised of ($9,500) and $140,500 of Specific CECL (Reversals) Reserve and ($15,669) and $17,796 of General CECL (Reversals) Reserve for the three and six months ended June 30, 2020, respectivelyb) Includes realized loss of $53.9 million in connection with the termination of our interest rate swap

(in thousands - except share and per share data) Three months ended Six months endedOperating Earnings3: June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019Net income (loss) available to common stockholders: $56,816 $56,505 ($74,411) $117,428Adjustments:

Equity-based compensation expense 4,252 4,294 8,515 8,195Unrealized (gain) loss on interest rate swap (50,018) 13,113 (14,470) 13,113(Gain) loss on foreign currency forwards 2,995 (11,186) (67,496) (4,466)Foreign currency (gain) loss, net (2,559) 7,777 35,390 883Unrealized gain on interest rate cap (738) — (738) —Realized gains relating to interest income on foreign currency hedges, net 1,088 325 1,344 744Realized gains relating to forward points on foreign currency hedges, net 1,318 44 3,489 2,476Amortization of the convertible senior notes related to equity reclassification 765 721 1,519 1,630Provision for (reversals of) loan losses (25,169) (15,000) 158,296 (15,000)

Total adjustments ($68,066) $88 $125,849 $7,575Operating Earnings3 ($11,250) $56,593 $51,438 $125,003

Realized loss on investments 16,405 12,513 16,405 12,513Realized loss on interest rate swap 53,851 — 53,851 —

Operating Earnings3 excluding realized loss on investments and realized loss on interest rate swap $59,006 $69,106 $121,694 $137,516

Weighted-average diluted shares – Operating Earnings3:Weighted-average diluted shares – GAAP 151,523,513 174,101,234 152,735,852 169,418,177Weighted-average unvested RSUs 2,026,918 1,846,173 2,017,080 1,847,860Reversal of hypothetical conversion of the Notes — (28,533,271) — (29,300,364)

Weighted-average diluted shares – Operating Earnings3 153,550,431 147,414,136 154,752,932 141,965,673Operating Earnings3 Per Share ($0.07) $0.38 $0.33 $0.88Operating Earnings3, excluding realized loss on investments and realized loss on interest rate swap, Per Share $0.38 $0.47 $0.79 $0.97

Computation of Share Count for Operating Earnings3

Basic weighted-average shares of common stock outstanding 151,523,513 145,567,963 152,735,852 140,117,813

Weighted-average unvested RSUs 2,026,918 1,846,173 2,017,080 1,847,860

Weighted-average diluted shares - Operating Earnings $153,550,431 147,414,136 154,752,932 141,965,673

Reconciliation of GAAP Net Income to Operating Earnings3

17

See footnotes on page 18

Footnotes

18

1. Represents total debt, less cash and loan proceeds held by servicer divided by total stockholders' equity, adjusted to add back the General CECL Allowance in line with our covenants. 2. Represents loan assets with no asset-specific financing. Pursuant to our Term Loan B agreement, we are required to maintain 1.25x our unencumbered assets, which is comprised of unencumbered loan assets, cash and other assets.

Includes impact of recent loan sales in May.3. 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 page 17 for a reconciliation of GAAP net income to Operating Earnings.

4. Weighted Average Unlevered All-in Yield on the loan portfolio is based on the applicable benchmark rates as of period end 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.

5. Refer to our 10-Q financials for the calculation of our net income (loss) per diluted share of common stock.6. Book value per share of common stock is common stockholders’ equity divided by shares of common stock outstanding.7. Fixed charge coverage is EBITDA divided by interest expense and preferred stock dividends.8. Unless otherwise noted, represents outstanding principal balance or liquidation preference.9. Debt balance includes GBP & EUR converted to USD using applicable June 30, 2020 spot rate.10. Assumes exercise of all extension options.11. Effective June 2020, ARI entered into a 3-year interest rate cap to cap LIBOR at 0.75%. This effectively limits the all-in coupon on ARI’s Term Loan B to a maximum of 3.50%. 12. Amounts and percentages may not foot due to rounding.13. Based on loan amortized cost.14. Conversion to USD on date of funding.15. Includes two subordinate risk retention interests in securitization vehicles classified as Subordinate Loans.16. 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.17. Amortized cost for these loans is net of the recorded provisions for loan losses and impairments.18. Both loans are secured by the same property.19. Future funding dates and amounts are based upon the Manager’s estimates, which are derived from 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.