Apollo Commercial Real Estate Finance Reports Second Quarter 2024 Results

Strategic Insights -

Apollo Commercial Real Estate Finance, Inc. (ARI) reported its quarterly results for the period ended June 30, 2024. The company's net income attributed to common stockholders per diluted share was $0.23 for the quarter. Distributable Earnings, a non-GAAP financial measure, was $0.35 for the quarter.

Key Takeaways:

  • ARI's net income attributed to common stockholders per diluted share was $0.23 for the quarter ended June 30, 2024.
  • Distributable Earnings, a non-GAAP financial measure, was $0.35 for the quarter ended June 30, 2024.
  • ARI co-originated a 55% loan-to-cost first mortgage loan secured by eight hospitals in Massachusetts in March 2022, with a total loan balance of $378.7 million.
  • The loan has an amortized cost basis of $341.9 million as of June 30, 2024.
  • Steward, the lessee of the hospitals, filed for Chapter 11 bankruptcy in May 2024.
  • ARI anticipates recording a Specific CECL Allowance of approximately $90 million in a subsequent quarter due to Steward's bankruptcy.
  • The Company will hold a conference call to review second-quarter results on August 7, 2024, at 10am ET.
  • ARI's presentation on its second-quarter results is available on its website.
  • Distributable Earnings is a non-GAAP financial measure that excludes unrealized gains and losses from investments.
  • A significant limitation of Distributable Earnings as a measure of the Company's financial performance is that it excludes unrealized gains and losses from investments.

Statistics:

  • ARI's net income attributed to common stockholders per diluted share was $0.23 for the quarter ended June 30, 2024.
  • Distributable Earnings was $0.35 for the quarter ended June 30, 2024.
  • The loan secured by eight hospitals in Massachusetts has an amortized cost basis of $341.9 million as of June 30, 2024.
  • ARI expects to record a Specific CECL Allowance of approximately $90 million in a subsequent quarter due to Steward's bankruptcy.
  • The Company's dividend payments are generally based on its Distributable Earnings and are intended to be at least 100% of its net taxable income.

Sources:

  • GlobeNewswire, "Apollo Commercial Real Estate Finance, Inc. Reports Second Quarter 2024 Results"
  • Company presentation, "Second Quarter 2024 Results"
  • Securities and Exchange Commission filings
  • Company website, investor.relations@ari.com