Apollo Commercial Real Estate Finance, Inc. (the “Company” or
“ARI”) (NYSE:ARI) today reported results for the quarter ended
March 31, 2024.
Net loss attributable to common stockholders per
diluted share of common stock was ($0.76) for the quarter ended
March 31, 2024. Distributable Earnings (a non-GAAP financial
measure defined below) per share of common stock was $0.35 for the
quarter ended March 31, 2024.
Commenting on this quarter’s results, Stuart
Rothstein, Chief Executive Officer and President of the Company
said: “ARI recorded an incremental CECL allowance in the first
quarter of 2024 of approximately $142 million on a mezzanine loan
secured by an ultra-luxury condominium development in New York City
due to a reduction in sales price and delayed timing on the
remaining units, resulting in a $1.00 decline in book value per
share. The allowance did not impact distributable earnings or ARI’s
ability to pay the dividend per share of common stock, which has
remained at $0.35 per share for sixteen consecutive quarters. There
were no additional Specific CECL Allowances recorded against any
other loans in ARI’s portfolio during the quarter.”
ARI issued a detailed presentation of the
Company’s quarter ended March 31, 2024 results, which can be viewed
at www.apollocref.com.
Conference Call and WebcastThe Company will
hold a conference call to review first quarter results on April 30,
2024, at 10am ET. To register for the call, please use the
following link:
https://register.vevent.com/register/BI6ac2030931b8437da1c4188b5f3b1634
After you register, you will receive a dial-in
number and unique pin. The Company will also post a link in the
Stockholders’ section on ARI’s website for a live webcast. For
those unable to listen to the live call or webcast, there will be a
webcast replay link posted in the Stockholders’ section on ARI’s
website approximately two hours after the call.
Distributable
Earnings“Distributable Earnings,” a non-GAAP financial
measure, is defined 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 (including depreciation and amortization related to
real estate owned) 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 the Company’s foreign currency
hedges, and (v) provision for loan losses.
As a REIT, U.S. federal income tax law
generally requires the Company to distribute annually at least 90%
of its REIT taxable income, without regard to the deduction for
dividends paid and excluding net capital gains, and that the
Company pay tax at regular corporate rates to the extent that it
annually distributes less than 100% of its net taxable income.
Given these requirements and the Company’s belief that dividends
are generally one of the principal reasons shareholders invest in a
REIT, the Company generally intends over time to pay dividends to
its stockholders in an amount equal to its net taxable income, if
and to the extent authorized by the Company’s board of directors.
Distributable Earnings is a key factor considered by the Company’s
board of directors in setting the dividend and as such the Company
believes Distributable Earnings is useful to investors.
The Company believes it is useful to its
investors to also present Distributable Earnings prior to net
realized loss on investments and realized gain on extinguishment of
debt, in applicable periods, to reflect its operating results
because (i) the Company’s operating results are primarily comprised
of earning interest income on its investments net of borrowing and
administrative costs, which comprise the Company’s ongoing
operations and (ii) it has been a useful factor related to the
Company’s dividend per share because it is one of the
considerations when a dividend is determined. The Company believes
that its investors use Distributable Earnings and Distributable
Earnings prior to net realized loss on investments and realized
gain on extinguishment of debt, or a comparable supplemental
performance measure, to evaluate and compare the performance of the
Company and its peers.
A significant limitation associated with
Distributable Earnings as a measure of the Company’s financial
performance over any period is that it excludes unrealized gains
(losses) from investments. In addition, the Company’s presentation
of Distributable Earnings may not be comparable to similarly titled
measures of other companies, that use different calculations. As a
result, Distributable Earnings should not be considered as a
substitute for the Company’s GAAP net income as a measure of its
financial performance or any measure of its liquidity under GAAP.
Distributable Earnings are reduced for realized losses on loans
which include losses that management believes are near certain to
be realized.
A reconciliation of Distributable Earnings to
GAAP net income (loss) available to common stockholders is included
in the detailed presentation of the Company’s quarter ended March
31, 2024 results, which can be viewed at www.apollocref.com.
About Apollo Commercial Real Estate
Finance, Inc. Apollo Commercial Real Estate Finance, Inc.
(NYSE: ARI) is a real estate investment trust that primarily
originates, acquires, invests in and manages performing commercial
first mortgage loans, subordinate financings and other commercial
real estate-related debt investments. The Company is externally
managed and advised by ACREFI Management, LLC, a Delaware limited
liability company and an indirect subsidiary of Apollo Global
Management, Inc., a high-growth, global alternative asset manager
with approximately $651 billion of assets under management at
December 31, 2023.
Additional information can be found on the
Company’s website at www.apollocref.com.
Forward-Looking
StatementsCertain statements contained in this press
release constitute forward-looking statements as such term is
defined in 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 the Company’s control. These
forward-looking statements include information about possible or
assumed future results of the Company’s business, financial
condition, liquidity, results of operations, plans and objectives.
When used in this release, the words believe, expect, anticipate,
estimate, plan, continue, intend, should, may or similar
expressions, are intended to identify forward-looking statements.
Statements regarding the following subjects, among others, may be
forward-looking: higher interest rates and inflation; market trends
in the Company’s industry, real estate values, the debt securities
markets or the general economy; the timing and amounts of expected
future fundings of unfunded commitments; the return on equity; the
yield on investments; the ability to borrow to finance assets; the
Company’s ability to deploy the proceeds of its capital raises or
acquire its target assets; and risks associated with investing in
real estate assets, including changes in business conditions and
the general economy. For a further list and description of such
risks and uncertainties, see the reports filed by the Company with
the Securities and Exchange Commission. The forward-looking
statements, and other risks, uncertainties and factors are based on
the Company’s beliefs, assumptions and expectations of its future
performance, taking into account all information currently
available to the Company. Forward-looking statements are not
predictions of future events. The Company disclaims any intention
or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
|
|
CONTACT: |
Hilary Ginsberg |
|
Investor Relations |
|
(212) 822-0767 |
Apollo Commercial Real E... (NYSE:ARI)
Historical Stock Chart
From Aug 2024 to Sep 2024
Apollo Commercial Real E... (NYSE:ARI)
Historical Stock Chart
From Sep 2023 to Sep 2024