EX-99.2

Legal Disclaimer

COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)

We make forward-looking statements in this presentation and other filings we make with the SEC within the meaning of Section 27A of the

Securities Act of 1933, as amended, and Section 21E of the Securities Exchange 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 risks and uncertainties, many of which

are difficult to predict and are generally beyond our control. These forward-looking statements include information about possible or assumed

future results of our business, financial condition, liquidity, results of operations, plans and objectives. When we use the words “believe,”

“expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “should,” “may” or similar expressions, we intend to identify forward-

looking statements. Statements regarding the following subjects, among others, may be forward-looking: our business and investment strategy;

our operating results; our ability to obtain and maintain financing arrangements; the return on equity, the yield on investments and risks

associated with investing in real estate assets, including changes in business conditions and the general economy.

The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all

information currently available to us. 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 are known to us. Some of these factors are described under

“Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” as included in ARI’s Annual

Report on Form 10-K for the fiscal year ended December 31, 2011 and other periodic reports filed with the Securities and Exchange Commission.

If a change occurs, our business, financial condition, liquidity and results of operations may vary materially from those expressed in our 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 us to predict those events or how they may affect us. Except as required by law, we are not obligated to, and do not intend to,

update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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.

ARI –

Financial Summary

(1)

Operating Earnings is a non-GAAP financial measure that is used to approximate cash available for distribution and is defined by the Company as net income, computed in accordance with GAAP, adjusted for (i) non-cash equity 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) and (ii) any unrealized gains or losses or other non-cash items included in net income. Please see slide 25 for a

reconciliation of Operating Earnings and Operating Earnings per Share to GAAP net income and GAAP net income per share.

(2)

Fixed rate debt refers to the TALF borrowings which were refinanced with the Wells repurchase facility during January 2012.

(3)

Fixed charge coverage is EBITDA divided by interest expense plus

the preferred stock dividends.

Income Statement

December 31, 2012

December 31, 2011

% Change

December 31, 2012

December 31, 2011

% Change

13,766

14,564

-5.5%

57,079

52,918

7.9%

(1,463)

(3,618)

-59.6%

(8,402)

(14,454)

-41.9%

Net interest income

(in thousands)

12,303

10,946

12.4%

48,677

38,464

26.6%

0.27

0.39

-30.8%

1.50

1.47

2.0%

27,608,787

20,561,032

34.3%

22,648,819

18,840,954

20.2%

Balance sheet

December 31, 2012

December 31, 2011

% Change

669,478

860,247

-22.2%

444,320

318,220

39.6%

Common stockholders equity

460,674

336,978

36.7%

86,250

251,327

225,158

290,700

0.5x

1.6x

3.3x

3.9x

Three Months Ended

Twelve Months Ended

Interest income (in thousands)

Interest expense

(in thousands)

Operating earnings per share

(1)

Basic and diluted weighted average common

shares outstanding

Investments at amortized cost (in thousands)

Net equity in investments at cost (in thousands)

Preferred stockholders equity

Debt to common equity

Fixed rate debt

(in thousands)

(2)

Fixed charge coverage

(3)

Floating rate debt (in thousands)

COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)

ARI –

Historical Overview

Operating Earnings per Share

(1)

Dividends per Common Share

Net Interest Income ($000s)

Return on Common Equity Based on Operating Earnings

(2)

$1.50

$1.60

$0.00

$0.40

$0.80

$1.20

$1.60

$2.00

2010

2011

2012

$1.09

$1.47

$1.50

$0.00

$0.40

$0.80

$1.20

$1.60

2010

2011

2012

$21,771

$38,464

$48,677

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

2010

2011

2012

5.9%

8.9%

9.2%

0.0%

3.0%

6.0%

9.0%

12.0%

2010

2011

2012

COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)

(1)

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) and (ii) any unrealized gains or losses or other non-cash items

(2)

Return on common equity is calculated as annualized Operating Earnings for the period as a percentage of average stockholders equity for the period.

included in net income. Please see slide 25 for a reconciliation of Operating Earnings and Operating Earnings per Share to GAAP net income and GAAP net income per share.

COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)

ARI –

Q4 Highlights

Financial Results & Earnings Per Share

Operating Earnings for the quarter ended December 31, 2012 of $7.4 million, or $0.27 per diluted

common share

(1)

–

Decline

operating

earnings

primarily

due

the

timing

the

deployment

capital

raised

from

the

July

preferred stock offering and the October common stock offering

–

Net interest income of $12.3 million for Q4 2012

–

Total expenses of $3.3 million, comprised of management fees of $2.0 million, G&A of

$0.9 million and non-cash stock based compensation of $0.4 million

–

GAAP

net

income

available

common

stockholders

for

the

quarter

ended

December

31,

2012

$7.1

million,

or $0.26 per diluted common share

Dividends

Declared a dividend of $0.40 per share of common stock for the quarter ended March 31, 2013

–

Eleventh consecutive quarter of maintaining consistent dividend level

–

9.2% annualized dividend yield based on $17.36 closing price on February 26, 2013

Declared a dividend on the Company’s 8.625% Series A Cumulative Redeemable Perpetual Preferred

Stock of $0.5391 per share for stockholders of record on December 31, 2012

(1)

equity 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) and (ii) any unrealized

gains or losses or other non-cash items included in net income. Please see slide 25 for a reconciliation of Operating Earnings and Operating Earnings per Share to GAAP net income and GAAP net income per share.

COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)

ARI –

Q4 Highlights

Investment and Portfolio Activity

Mezzanine Loan, Hotel Portfolio

$50 million junior mezzanine loan secured by a pledge of the equity interest in a borrower that owns

three full-service conference hotels located in Dallas, TX, Denver, CO and St. Louis, MO, totaling 3,981

keys

Part of a new $410 million, four-year floating rate financing comprised of a $295 million first mortgage

loan and a $115 million mezzanine loan, which was bifurcated into a $65 million senior mezzanine loan

and the $50 million junior mezzanine loan

Appraised

LTV

–

61%;

Interest

rate

–

LIBOR

10.9%;

30-year

amortization;

Origination

Fee

–

0.5%

Underwritten IRR

(1)

~ 13%

Whole Loan, Condominium Conversion, New York, NY

$80

million

whole

loan

commitment

for

condominium

conversion

located

the

TriBeCa

neighborhood of NYC; The property will have 66 units with approximately 96,000 net salable square

feet and approximately 3,000 square feet of retail space

$45 million first mortgage loan and $0.4 million of a $35 million mezzanine loan were funded at

closing; the balance is expected to be funded throughout the conversion process

Initial term of two years, with two 12-month extensions, subject to completion hurdles

Interest rate –

LIBOR+8.5% (0.5% LIBOR floor); 1.0% origination fee; 1.0% exit fee

Underwritten

loan-to-net

sellout

(assuming

loan

fully

funded)

–

55%

Underwritten unlevered IRR

(1) ~

11%

(1)

The

internal

rates

return

(“IRR”)

for

the

investments

listed

reflect

the

returns

underwritten

the

Manager,

calculated

weighted

average

basis

assuming

dispositions,

early

prepayments

defaults

but

assumes

extensions

well

the

cost

borrowings

and

derivative instruments under the Company’s master repurchase agreement with Wells Fargo Bank, N.A. (“Wells Facility”). The calculation for the New York City whole loan also assumes certain estimates with respect to the timing and magnitude of

future fundings for the

remaining commitments and associated loan repayments, as well as

assuming no defaults. There can be no assurance the actual IRRs will equal the underwritten IRRs shown. See “Risk Factors”

in the Company’s Annual Report on Form 10-K for the year ended December

31, 2011 for a discussion of some of the factors that could adversely impact the returns received by the Company from the investments over time.

COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)

ARI –

Q4 Highlights

Capital Markets Activity

Common Stock Offering

Completed

underwritten

public

offering

7,404,460

common

stock,

including

the

partial

exercise

the

underwriters’

option to purchase additional shares, raising net proceeds of approximately $124.1 million

Portfolio Summary

Total investments with an amortized cost of $669 million at December 31, 2012

Current

weighted

average

underwritten

IRR

approximately

12.7%

and

levered

weighted

average

underwritten

IRR

of approximately 14.1% at December 31, 2012

(1)

Book Value

GAAP book value of $16.43 per share as of December 31, 2012

Fair value of $16.84 per share as of December 31, 2012

(2)

ARI closed at $17.36 on February 26, 2013, a 5.7% premium to GAAP book value per share

(1)

The internal rates of return (“IRR”) for the investments listed reflect the returns underwritten by the Manager, calculated on a weighted average basis assuming no dispositions, early prepayments or defaults but assumes extensions as well as the cost of borrowings and derivative

instruments under the Wells Facility. The calculation also assumes extension options on the Wells Facility with respect to the Hilton CMBS are exercised. The calculation for the New York City whole loan also assumes certain estimates with respect to the timing and magnitude of

future fundings for the remaining commitments and associated loan repayments, as well as assuming no defaults. There can be no assurance the actual IRRs will equal the underwritten IRRs shown. See “Risk Factors” in the Company’s Annual Report on Form 10-K for the year

ended December 31, 2011 for a discussion of some of the factors that could adversely impact the returns received by the Company from the investments over time. Substantially all of the Company’s borrowings under the Company's master repurchase facility with JPMorgan Chase

Bank, N.A. (the "JPMorgan Facility") were repaid upon the closing of the Company’s Series A Preferred Stock offering in August 2012. The Company's ability to achieve its levered weighted average underwritten IRR is additionally dependent upon the Company re-borrowing

approximately $53 million under the JPMorgan Facility or any replacement facility. Without such re-borrowing, the levered weighted average IRR with regard to its portfolio of first mortgage loan will be significantly lower than the amount shown above, as indicated by the

current weighted average underwritten IRR above.

(2)

The Company carries loans at amortized cost and its CMBS securities are marked to market. Management has estimated that the fair value of the Company’s financial assets at December 31, 2012 was approximately $11.5 million greater than the carrying value of the Company’s

investment portfolio as of the same date. This represents a premium of $0.41 per share over the Company's GAAP book value as of December 31, 2012.

COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)

ARI –

Subsequent Events

Mezzanine Loan –

Multifamily Conversion, New York, NY

$18

million

mezzanine

loan

commitment

secured

pledge

the

equity

interests

the

owner

two buildings in Midtown Manhattan which contain a total of 181,637 rentable square feet that is being

converted into 215 multifamily units

Part of a $90 million, three year, interest only, floating rate financing comprised of the $18 million

mezzanine loan

and a $72 million first mortgage loan

Interest rate –

LIBOR+10.0%, increasing to LIBOR+11.0% as certain funding hurdles are met; 1.0%

origination fee

Underwritten

LTV

(assuming

first

mortgage

loan

fully

funded)

–

60%

Underwritten IRR

(1)

~ 13%

Mezzanine Loan –

Hotel Portfolio, Rochester, MN

$25 million mezzanine loan secured by a pledge of the equity interests in the owner of a portfolio of

four hotels totaling 1,231 keys located in Rochester, Minnesota

Part of a $145 million, five-year, fixed-rate financing comprised of a $120 million first mortgage loan

and the $25 million mezzanine loan provided in connection with the acquisition of the portfolio

Interest

rate

–

11.0%;

Appraised

LTV

–

69%

Underwritten IRR

(1)

~ 12%

(1)

instruments under the Wells Facility. There can be no assurance the actual IRRs will equal the underwritten IRRs shown. See “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011 for a discussion of some of the factors that could

adversely impact the returns received by the Company from the investments over time.

ARI –

Subsequent Events (cont.)

Mezzanine

Loan

–

Condominium

Development,

New

York,

$60

million

mezzanine

loan

commitment

secured

pledge

preferred

equity

interests

the

owner

of a to-be-developed 352,624 net saleable square foot, 57-story, 146-unit condominium tower located in

the TriBeCa neighborhood of New York City

$46 million funded at closing with the remaining $14 million expected to be funded in six months

following closing

Interest

rate

–

13.25%;

1.0%

origination

fee

and

1.0%

exit

fee

Initial term of 54 months, with one extension option for 12-months

Underwritten

loan-to-net

sellout

(assuming

loan

fully

funded)

–

55%;

Underwritten IRR

(1)

~ 16%

Repayments

Principal repayment on two mezzanine loans totaling $50 million secured by a portfolio of shopping

centers

Received

$2.5

million

yield

maintenance

payment;

Total

realized

IRR

investment

–

15%

Full principal repayment on repurchase agreement secured by CDO bonds

Total

realized

IRR

investment

–

17%

(1)

The internal rates of return (“IRR”) for the investment listed reflects the returns underwritten by the Manager, calculated on a weighted average basis assuming no dispositions, early

prepayments or defaults but assumes extensions as well as the cost of borrowings and derivative instruments under the Wells Facility. The calculation for this investment also assumes

certain estimates with respect to the timing and magnitude of future fundings for the remaining commitments and associated loan repayments, as well as assuming no defaults. There

can be no assurance the actual IRRs will equal the underwritten IRRs shown. See “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31,

2011 for a discussion of some of the factors that could adversely impact the returns received by the Company from the investments over time.

Total

YTD

2013

Investment

Activity

$103

million

COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)

Subsequent Events

ARI –

Subsequent Events (cont.)

Subsequent Events

Amendment to JP Morgan Facility

Extended the term of the facility for two years (one-year term with one, 364 day extension)

Pricing to remain at LIBOR+2.50%

ARI paid a 0.5% fee for the first year and will pay a 0.25% extension fee for the 364 day extension

Amendment to Wells Facility

Reduced

interest

rate

for

outstanding

borrowings

used

finance

AAA

CMBS

LIBOR+1.05%

from

LIBOR+1.25% -

1.50%

Reduced

interest

rate

for

outstanding

borrowings

used

finance

Hilton

CMBS

LIBOR+1.75%

from

LIBOR+2.35%

Extended

the

term

for

the

outstanding

borrowings

used

finance

the

AAA

CMBS

until

March

2014

Corporate Governance

Board of Directors appointed Megan Gaul to the positions of Chief Financial Officer, Treasurer and

Secretary, effective April 1, 2013

COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)

ARI –

Portfolio Overview

Asset Type

($000s)

Amortized

Cost

Borrowings

Equity

at Cost

Remaining

Weighted

Average Life

(years )

(1)

Current

Weighted

Average

IRR

(2)(3)

Levered

Weighted

Average

IRR

(4)

First Mortgage Loans

(2)

$142,921

$142,918

2.6

10.8%

15.6%

Subordinate Loans

246,246

4.7

13.6

Repurchase Agreements

6,598

1.2

13.7

CMBS -

AAA

203,463

176,827

26,636

1.8

15.3

CMBS -

Hilton

70,250

48,328

21,922

2.9

11.6

Investments at December 31, 2012

$669,478

$225,158

$444,320

3.1 Years

12.7%

14.1%

As of December 31, 2012.

(1)

Remaining Weighted Average Life assumes all extension options are exercised.

(2)

Borrowings under the Company’s master repurchase facility with JPMorgan (the “JPMorgan Facility”) bear interest at LIBOR plus 250 basis points, or 2.7% at December 31, 2012. The IRR calculation further assumes the JPM Facility or any replacement

facility will remain available over the life of these investments.

(3)

The IRR for the investments shown in the above table reflect the

returns underwritten by the Manager, calculated on a weighted average basis assuming no dispositions, early prepayments or defaults but assumes extensions as well as the cost of borrowings and

derivative instruments under the Wells Facility. The calculation

also assumes extension options on the Wells Facility with respect to the Hilton CMBS are exercised.

The calculation for the New York City whole loan also assumes certain estimates with respect to

the timing and magnitude of future fundings for the remaining commitments and associated loan repayments, as well as assuming no

defaults.

There can be no assurance the actual IRRs will equal the underwritten IRRs shown in the table. See “Risk Factors”

the Company’s Annual Report on Form 10-K for the year ended December 31, 2011 for a discussion of some of the factors that could adversely impact the returns received by the Company from the investments shown in the table over time.

(4)

Substantially all of the Company’s borrowings under the JPMorgan Facility were repaid upon the closing of the Company’s Series A Preferred Stock offering in August 2012.

The Company's ability to achieve its underwritten levered weighted average IRR with

regard to its portfolio of first mortgage loans is additionally dependent upon the Company re-borrowing approximately $53,000 under the JPMorgan Facility or any replacement facility.

Without such re-borrowing, the levered weighted average IRRs will be as

indicated in the current weighted average IRR column above.

COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)

ARI –

Portfolio Diversification

The portfolio is diversified by property type and geographic location

Geographic Diversification by Net Equity

Property Type by Net Equity

(1)

Other category includes the subordinate financing on a ski resort and a first mortgage loan on a development site with income producing parking lots.

Securities

12%

Residential

10%

Hotel

36%

Office

11%

Retail

17%

Mixed

Use/Other(1)

14%

New York City

36%

Northeast

(excluding NYC)

Securities

12%

Southeast

Mid-Atlantic

12%

Midwest

West

16%

Southwest

COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)

ARI –

Loan Portfolio –

Loan Level LTV (Through Last Invested Dollar)

First Mortgage Loans

Subordinate Financing

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Description ($ in thousands)

Location

Balance at

December 31,

2012

Starting

LTV

Ending

LTV

(1)

Subordinate -

Hotel Portfolio

Various

49,950

53%

61%

Subordinate -

Ski Resort

California

40,000

29%

56%

Subordinate -

Retail

Various

30,000

58%

68%

Subordinate -

Retail

Virginia

26,243

60%

74%

Subordinate -

Hotel Portfolio

New York

25,000

40%

60%

Subordinate -

Retail

Various

20,000

58%

72%

Subordinate -

Hotel

New York

15,000

51%

63%

Subordinate -

Hotel

New York

15,000

51%

65%

Subordinate -

Office

Missouri

9,979

62%

72%

Subordinate -

Office

Michigan

8,912

53%

68%

Subordinate -

Mixed Use

North Carolina

6,525

65%

77%

Subordinate -

Condo Conversion

(2)

New York

350

31%

55%

Total

246,959

Description ($ in thousands)

Location

Balance at

December 31,

2012

Starting

LTV

Ending

LTV

(1)

First Mortgage -

Condo Conversion

(2)

New York

45,000

31%

First Mortgage -

Hotel

New York

31,571

40%

First Mortgage -

Office

New York

27,419

53%

First Mortgage -

Hotel

Maryland

25,273

56%

First Mortgage -

Parking/Development Site

(3)

Massachusetts

17,287

21%

Total

146,550

(1)

Ending LTV represents the current loan balance as a percentage of the value as of the date of investment for all loans except the $31,633 New York, NY hotel loan, which is as of March 2011.

(2)

Both loans are for the same property; Ending LTV for the Condominium Conversion mezzanine loan is based upon the committed amount of $35 million.

(3)

Ending LTV is based upon the aggregate face value ($23.8 million) of the senior sub-participation interests at the date of investment; ARI purchased the senior sub-participation interests for $17.8 million (75%

of face value).

COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)

ARI –

Senior Loan Portfolio

Description ($000’s)

Date of

Investment

Maturity

Date

(1)

Original

Face

Amount

Current Face

Amount

Coupon

Amortization

Schedule

Property

Size

LTV

(2)

Hotel

New York, NY

Jan-10

Feb-15

$32,000

$31,571

8.25%

30 year

151

rooms

40%

Office Condo (Headquarters)

New York, NY

Feb-10

Feb-15

28,000

27,419

8.00

30 year

73,419

sq. ft.

53%

Hotel

Silver Spring, MD

Mar-10

Apr-15

26,000

25,273

9.00

25 year

263

rooms

56%

Parking/Development Site

Boston, MA

Apr-12

Dec-13

23,844

17,287

1.98%

(L+1.72%)

Interest only

20 acres

21%

Condominium Conversion

(3)

New York, NY

Dec-12

Jan-15

45,000

9.00

Interest only

66 units

31%

Total

$154,844

$146,550

7.82%

(1)

Maturity date assumes all extension options are exercised.

(2)

LTV represents the current loan balance as a percentage of the value as of the date of investment for all loans except the $31,633 New York, NY hotel loan, which is as of March 2011.

(3)

Includes a 1.00% origination fee, a LIBOR floor of 0.50%, two one-year extension options subject to certain conditions and the payment of a 0.50% fee for each extension.

(4)

Interest rate includes 10% current payment with a 3% accrual.

Description ($000’s)

Date of

Investment

Maturity

Date

Original

Face

Amount

Current Face

Amount

Coupon

Amortization

Schedule

Property

Size

LTV

(2)

Repurchase Agreement

(4)

Sept-10

Mar-14

$47,439

$6,598

13.00%

Interest only

N/A

Total

$47,439

$6,598

13.00%

COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)

ARI –

Subordinate Loan Portfolio

Description ($000’s)

Date of

Investment

Maturity

Date

(1)

Original Face

Amount

Current Face

Amount

Coupon

Amortization

Schedule

LTV

(2)

Senior Mezz –

Retail

Various

Dec-09

Dec-19

(3)

$30,000

12.24%

Interest

only

68%

Junior Mezz –

Retail

Various

Dec-09

Dec-19

(3)

20,000

14.00

Interest

only

72%

Office

Troy, MI

May-10

Jun-20

9,000

8,912

13.00

25 year

68%

Ski Resort

Mammoth Lakes, CA

Apr-11

May-17

(4)

40,000

14.00

Interest

only

56%

Hotel Portfolio

New York,

(5)

Aug-11

July-16

(6)

25,000

11.49

(L+10.49%)

Interest

only

60%

Retail Center

Woodbridge, Virginia

(7)

Oct-11

Oct-16

(7)

25,000

26,243

14.00

Interest

only

74%

Hotel

New York, NY

(8)

Jan-12

Jan-15

15,000

12.00

Interest

only

63%

Hotel

New York, NY

(9)

Mar-12

Feb-16

15,000

11.50

(L+11.00%)

Interest

only

65%

(1) Maturity date assumes all extension options are exercised.

(2) LTV represents the current loan balance as a percentage of the value as of the date of investment.

(3) Prepayments are prohibited prior to the fourth year of the loan and any prepayments thereafter are subject to prepayment penalties ranging from 5% to 1%.

(4) Prepayments are prohibited prior to the third year of the loan and any prepayments thereafter are subject to prepayment penalties ranging from 5% to 1%.

(5) Includes a LIBOR floor of 1% and three one-year extension options subject to certain conditions and the payment of a 0.25% fee for the fourth and fifth year extensions.

(6) Prepayments are prohibited prior to February 2013 and any prepayments thereafter are subject to spread maintenance premiums.

(7) Interest rate of 14.0% includes a 10.0% current payment with a 4.0% accrual. There are two one-year extension options subject to certain conditions.

(8) Includes a 1.00% origination fee, a one-year extension option subject to certain conditions and a 0.50% extension fee as well as a 1.50% exit fee.

(9) Includes a LIBOR floor of 0.50%, two one-year extension options subject to certain conditions and the payment of a 0.50% fee for the second extension.

COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)

Description ($000’s)

Date of

Investment

Maturity

Date

(1)

Original Face

Amount

Current Face

Amount

Coupon

Amortization

Schedule

LTV

(2)

Mixed Use

Chapel Hill, NC

July-12

July-22

6,525

11.10

Interest

only

77%

Office

Kansas City, MO

Sept-12

Sept-22

10,000

9,979

11.75

30 year

72%

Hotel Portfolio

(3)

Various Locations

Nov-12

Nov-15

50,000

49,950

11.11

30 Year

61%

Condominium Conversion

(4)

New York, NY

Dec-12

Jan-15

350

9.00%

Interest Only

55%

Total

$245,875

$246,959

12.46%

ARI –

Subordinate Loan Portfolio (cont.)

(1)

Maturity date assumes all extension options are exercised.

(2)

LTV represents the current loan balance as a percentage of the value as of the date of investment.

(3)

Includes a 0.50% origination fee, a one-year extension option subject to certain conditions and a 0.25% extension fee.

(4)

Includes a 1.00% origination fee on the entire balance of the loan (funded and unfunded), a LIBOR floor of 0.50%, two one-year extension options subject to certain conditions and the payment of a 0.50% fee for each extension.

COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)

ARI –

CMBS Portfolio

Face

Amortized

Cost

Remaining Weighted

Average Life with

Extensions (years)

Estimated

Fair Value

Debt

Net

Equity at

Cost

CMBS –

AAA

$200,104

$203,463

1.8

$205,327

$176,827

26,636

CMBS –

Hilton

73,239

70,250

2.9

73,561

48,328

21,922

CMBS –

Total

$273,343

273,713

2.1

$278,888

$225,155

$48,558

CMBS

AAA

CUSIP

Description

07388YAB8

BSCMS 07-PW16 A2

07401DAB7

BSCMS 2007-PW18 A2

12513YAC4

CD 2007-CD4 A2B

46629MAB1

JPMCC 2006-LDP8 A2

61754KAC9

MSC 07-IQ14 A2

92978YAB6

WBCMT 07-C32 A2

CMBS

AAA

CUSIP

Description

36246LAB7

GSMS 2007-GG10 A2

46630JAK5

JPMCC 2007-LDPX A2S

61751NAD4

MSC 2007-HQ11 A31

92978TAB7

WBCMT 2007-C31 A2

CMBS

–

Hilton

CUSIP

Description

05956KAA6

BALL 2010-HLTN

COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)

Portfolio Metrics –

Quarterly Migration Summary

(1)

The IRR for the investments shown in the above table reflect the returns underwritten by the Manager, calculated on a weighted average basis assuming no dispositions, early prepayments or defaults but assumes extensions as well as the cost of borrowings and

derivative instruments under the Wells Facility. The calculation

also assumes extension options on the Wells Facility with respect to the Hilton CMBS are exercised.

The calculation for the New York City whole loan also assumes certain estimates with respect to

the timing and magnitude of future fundings for the remaining commitments and associated loan repayments, as well as assuming no

defaults.

There can be no assurance the actual IRRs will equal the underwritten IRRs shown in the table. See “Risk Factors”

(2)

Represents an underwritten levered weighted

average

IRR.

The

Company's

ability

achieve

the

underwritten

levered

weighted

average

IRR,

additionally

depends

upon

the

Company

re-borrowing

approximately

$53,000

under

the

JPMorgan

Facility or any

replacement facility with regard to its portfolio of first mortgage loans.

Without such re-borrowing, the levered weighted average IRR will be significantly lower than the amount shown above, as indicated in the weighted average IRR column on page 11.

(3)

Does not include CMBS (AAA or Hilton) or repurchase agreement investment secured by CDO bond.

COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)

Portfolio Metrics ($ in thousands)

Q4 2012

Q3 2012

Q2 2012

Q1 2012

Q4 2011

(Investment balances represent amortized cost)

First Mortgage Loans

142,921

104,101

103,320

108,817

109,006

Subordinate Loans

246,246

196,177

179,602

179,336

149,086

Repurchase Agreement

6,598

10,975

41,696

47,439

CMBS -

AAA

203,463

223,781

280,697

330,413

554,716

CMBS -

Hilton

70,250

70,521

70,719

Total Investments

669,478

605,555

676,034

666,005

860,247

(Investment balances represent net equity)

First Mortgage Loans

142,918

104,098

50,260

40,210

40,286

Subordinate Loans

246,246

196,177

179,602

179,336

149,086

Repurchase Agreement

6,598

10,975

41,696

47,439

CMBS -

AAA

26,636

29,712

32,520

43,763

81,409

CMBS -

Hilton

21,922

21,623

21,260

Net Equity in Investments at Cost

444,320

362,585

325,338

310,748

318,220

Weighted Average IRR

(1)

14.1%

(2)

14.9%

(2)

15.0%

14.7%

14.2%

Weighted Average Duration

3.1 Years

3.3 Years

2.9 Years

2.8 Years

2.2 Years

Loan Portfolio Weighted Average Ending LTV

(3)

55.6%

58.0%

57.1%

59.3%

58.8%

Borrowings

225,158

242,970

350,696

355,257

542,027

COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)

ARI had total borrowings outstanding of $225 million at December

31, 2012

ARI’s borrowings had the following remaining maturities at December 31, 2012:

Financing Overview

Facility ($000s)

Debt Balance

Weighted

Average

Remaining

Maturity

(1)

Cost of

Funds

Hedged

Cost of

Funds

Wells Facility

(1)

$225,155

1.1 years

1.8%

1.9%

JP Morgan Facility

(2)

5 days

2.7%

Total Borrowings at December 31, 2012

$225,158

1.1 years

1.8%

1.9%

Facility ($000s)

Less than 1

year

1 to 3 years

3 to 5 years

Total

Wells Facility

(1)

$179,068

$46,087

$225,155

JP Morgan Facility

(2)

Total Borrowings at December 31, 2012

$179,071

$46,087

$225,158

(1)

Assumes extension options on Wells Facility are exercised. At December 31, 2012, the interest rate on the outstanding borrowings on the Wells Facility was LIBOR plus 125bps,

150bps or 235bps depending on the collateral pledged. In February, 2013, the Wells Facility was amended and the interest rate with respect to outstanding borrowings used to

finance AAA CMBS was reduced to LIBOR plus 105bps and the interest rate with respect to outstanding borrowings used to finance the Hilton CMBS was reduced to LIBOR plus

175bps. In addition, the term of the Wells Facility with respect to the outstanding borrowings used to finance the Hilton CMBS was extended to March 2014.

The JP Morgan Facility was renewed for a term of two years (one year renewal with a 364 day extension) in February, 2013.

(2)

Consolidated Balance Sheets

(in thousands—except share and per share data)

December 31, 2012

December 31, 2011

Assets:

Cash

108,619

21,568

Securities available-for-sale, at estimated fair value

67,079

302,543

Securities, at estimated fair value

211,809

251,452

Commercial mortgage loans, held for investment

142,921

109,006

Subordinate loans, held for investment

246,246

149,086

Repurchase agreements, held for investment

6,598

47,439

Principal and interest receivable

4,277

8,075

Deferred financing costs, net

678

2,044

Other assets

203

Total Assets

788,430

891,230

Liabilities and Stockholders' Equity

Liabilities:

Borrowings under repurchase agreements

225,158

290,700

TALF Borrowings

251,327

Derivative instruments, net

155

478

Accounts payable and accrued expenses

1,265

1,746

Payable to related party

2,037

1,298

Dividends payable

12,891

8,703

Total Liabilities

241,506

554,252

Stockholders' Equity:

Preferred stock, $0.01 par value, 50,000,000 shares authorized and 3,450,000 shares issued and outstanding in 2012

Common stock, $0.01 par value, 450,000,000 shares authorized 28,044,106 and 20,561,032 shares issued and

outstanding in 2012 and 2011, respectively

280

206

Additional paid-in-capital

546,065

336,209

Retained earnings

574

Accumulated other comprehensive income (loss)

(30)

563

Total Stockholders' Equity

546,924

336,978

Total Liabilities and Stockholders' Equity

788,430

891,230

COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)

Consolidated Statement of Operations

2012

2011

2012

2011

Net interest income:

Interest income from securities

3,120

5,904

15,347

25,323

Interest income from commercial mortgage loans

2,930

2,267

10,780

9,153

Interest income from subordinate loans

7,350

4,817

24,666

13,678

Interest income from repurchase agreements

366

1,576

6,286

4,764

Interest expense

(1,463)

(3,618)

(8,402)

(14,454)

Net interest income

12,303

10,946

48,677

38,464

Operating expenses:

General and administrative expenses (includes $380 and $3,624

of non-cash stock based compensation in 2012 and $634 and

$1,788 in 2011, respectively)

(1,315)

(1,563)

(8,543)

(5,652)

Management fees to related party

(2,040)

(1,297)

(6,139)

(4,728)

Total operating expenses

(3,355)

(2,860)

(14,682)

(10,380)

Interest income from cash balances

Realized gain on sale of securities

262

Unrealized gain on securities

600

6,489

481

Loss on derivative instruments (includes unrealized gains

(losses) of $96 and $323 in 2012 and $426 and $(865) in 2011,

respectively)

(2)

(18)

(572)

(2,696)

Net income

8,968

8,669

40,181

25,882

Preferred dividends

(1,860)

(3,079)

Net Income available to common shareholders

7,108

8,669

37,102

25,882

Basic and diluted net income per share of common stock

0.26

0.41

1.64

1.35

Basic and diluted weighted average common shares outstanding

27,297,600

20,561,032

22,648,819

18,840,954

Dividend declared per share of common stock

0.40

1.60

Three months ended December 31,

Twelve months ended December 31,

COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)

Reconciliation of Operating Earnings to Net Income

December 31, 2012

Earnings Per Share

(Diluted)

December 31, 2011

Earnings Per Share

(Diluted)

Operating Earnings:

Net income available to common stockholders

$7,108

$0.26

$8,669

$0.41

Adjustments:

Unrealized gain on securities

(16)

(600)

(0.03)

Unrealized gain on derivative instruments

(96)

(426)

(0.02)

Non-cash stock-based compensation expense

380

0.01

634

0.03

Total adjustments:

268

0.01

(392)

(0.02)

Operating Earnings

7,376

$0.27

$8,277

$0.39

Basic and diluted weighted average common shares outstanding

27,608,787

20,561,032

Three Months Ended

COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)

December 31, 2012

Earnings Per Share

(Diluted)

December 31, 2011

Earnings Per Share

(Diluted)

Operating Earnings:

Net income available to common stockholders

$37,102

$1.64

$25,882

$1.35

Adjustments:

Unrealized gain on securities

(6,489)

(0.29)

(481)

(0.03)

Unrealized (gain) loss on derivative instruments

(323)

(0.01)

865

0.05

Non-cash stock-based compensation expense

3,624

0.16

1,788

0.10

Total adjustments:

(3,188)

(0.14)

2,172

0.12

Operating Earnings

33,914

$1.50

$28,054

$1.47

Basic and diluted weighted average common shares outstanding

22,648,819

18,840,954

Twelve Months Ended

Financial Metrics –

Quarterly Migration Summary

(1)

which may become cash-based upon final vesting and settlement of awards should the holder elect net share settlement to satisfy income tax withholding)

and (ii) any unrealized gains or losses or other non-cash items included in net income. Please see slide 25 for a

reconciliation of Operating Earnings and Operating Earnings per Share to GAAP net income and GAAP net income per share.

(2)

The Company carries loans at amortized cost and its CMBS securities are marked to market. Management estimates the fair value of the Company’s financial assets.

(3)

Return on common equity is calculated as annualized Operating Earnings for the period as a percentage of average stockholders equity for the period.

COMMERCIAL REAL ESTATE FINANCE, INC. (“ARI”)

Financial Metrics

($ in thousands, except per share data)

Q4 2012

Q3 2012

Q2 2012

Q1 2012

Q4 2011

Net Interest Income

12,303

13,236

11,951

11,187

10,946

Management Fee

2,040

1,518

1,292

1,289

1,297

General and Administrative Costs

935

1,154

1,876

953

929

Non-Cash Stock Based Compensation

380

1,276

886

1,083

634

Net Income Available to Common Stockholders

7,108

10,992

9,910

9,093

8,669

GAAP Diluted EPS

0.26

0.52

0.47

0.43

0.41

Operating Earnings

(1)

7,375

9,218

8,526

8,795

8,278

Operating EPS

(1)

0.27

0.44

0.41

0.42

0.39

Distributions Declared to Common Stockholders

0.40

GAAP Book Value per Common Share

16.43

16.58

16.59

16.46

16.39

Fair Value per Common Share

(2)

16.84

17.16

17.22

17.04

16.80

Total Stockholders' Equity

546,924

427,421

341,518

338,377

336,978

Return on Common Equity Based on Operating Earnings

(3)

6.8%

10.8%

10.0%

10.4%

9.8%