Apollo Commercial Real Estate Finance completed investments totalling USD349.0m through 31 January 2010.

These investments involved the deployment of USD127.8m, or approximately 61 per cent, of the equity capital raised in the company's initial public offering.

Stuart Rothstein, chief financial officer of Apollo, says: "The nature and timing of ARI's initial investment activity is consistent with the strategy and plan highlighted during our initial public offering. We believe the first mortgage and mezzanine loans provide attractive interest rates well supported by high quality assets with strong sponsorship and the CMBS will generate strong returns on equity."

In addition to its investment activity, the company has closed a USD100m financing facility which will enable it to employ a modest amount of leverage against its first mortgage loans. The facility has a term of one-year, with two one-year extensions available at the company's option, and a borrowing rate of Libor plus 300 basis points.

During the quarter ended 31 December 2009, Apollo completed the origination and acquisition of mezzanine loans totalling USD50.0m and securities totalling USD154.7m. During the month ended 31 January 2010, Apollo completed the origination of a USD32.0m first mortgage loan and the acquisition of securities totalling USD112.3m.

The Company originated a USD32.0m five-year fixed rate first mortgage loan on a downtown Manhattan hotel with a national flag and a publicly traded sponsor. The loan has a loan-to-value of 55 per cent and interest rate of 8.25 per cent.

ARI invested a total of USD50.0m in a USD30.0m senior mezzanine loan and a USD20.0m junior mezzanine loan originated as part of a USD625m newly originated financing for Inland Western Retail Real Estate Trust. In total, the financing consisted of USD500m of newly issued investment grade CMBS and USD125m of mezzanine debt, split between an USD85m senior mezzanine loan and a USD40m junior mezzanine loan.

Both the senior and junior mezzanine loans are ten-year fixed rate loans with coupon interest rates of 12.2 per cent and 14.0 per cent, respectively, resulting in weighted average current coupon to the company of 12.9 per cent. The financing is collateralized by a geographically diverse portfolio of 55 retail properties. Underwritten net operating income results in an LTV of 76.5 per cent and a debt yield of 11.8 per cent through the junior mezzanine loan.

To date, the company has acquired and financed approximately USD267.0m of AAA-rated legacy CMBS. The securities have been financed through the Term Asset-Backed Securities Loan Facility programme, resulting in loan proceeds of USD221.2m and a net equity investment of USD45.8m.

The securities acquired are comprised of A2 and A3 tranches from nine securitizations with a weighted average coupon of 5.60 per cent. The TALF financing is a mix of three and five year non-cross defaulted, non-recourse and non-mark-to-market financing with a weighted average interest rate of 2.84 per cent, resulting in a levered current cash yield of approximately 18.9 per cent.