Apollo Commercial Real Estate Finance Reports Second Quarter 2024 Results

Strategic Insights -

Apollo Commercial Real Estate Finance, Inc. (NYSE: ARI) reported its second quarter 2024 results, with net income attributed to common stockholders per diluted share of common stock at $0.23 for the quarter ended June 30, 2024. The company also reported Distributable Earnings (a non-GAAP financial measure) and Distributable Earnings prior to net realized loss on investments per share of common stock at $0.35 for the same period. The company has also made significant announcements regarding a loan secured by eight hospitals in Massachusetts, which was co-originated by ARI and other Apollo-managed entities in March 2022. The loan has an original balance of $378.7 million and ARI's portion of the loan was $341.9 million as of June 30, 2024. The loan remains current on all contractual interest payments, but with Steward Health Care filing for Chapter 11 bankruptcy in May 2024, the company has downgraded the loan's risk rating.

Key Takeaways:

  • ARI reported net income attributed to common stockholders per diluted share of common stock of $0.23 for the quarter ended June 30, 2024.
  • Distributable Earnings (a non-GAAP financial measure) and Distributable Earnings prior to net realized loss on investments per share of common stock were $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 an original balance of $378.7 million and ARI's portion of the loan being $341.9 million as of June 30, 2024.
  • The loan remains current on all contractual interest payments but with Steward Health Care filing for Chapter 11 bankruptcy in May 2024, the company has downgraded the loan's risk rating from a three to a four.
  • The Company anticipates recording a Specific CECL Allowance in a subsequent quarter, which the Company currently estimate to be approximately $90 million.

Statistics:

  • Net income attributed to common stockholders per diluted share of common stock: $0.23 for the quarter ended June 30, 2024.
  • Distributable Earnings (a non-GAAP financial measure): $0.35 for the quarter ended June 30, 2024.
  • Original balance of the loan secured by eight hospitals in Massachusetts: $378.7 million.
  • ARI's portion of the loan secured by eight hospitals in Massachusetts as of June 30, 2024: $341.9 million.
  • Current risk rating of the loan secured by eight hospitals in Massachusetts: four.
  • Estimated Specific CECL Allowance: approximately $90 million.

Sources:

  • GlobeNewswire (MIL-OSI) NEW YORK, Aug. 06, 2024 (GLOBE NEWSWIRE) -- Apollo Commercial Real Estate Finance, Inc. (the "Company" or "ARI") (NYSE:ARI) today reported results for the quarter ended June 30, 2024.
  • Apollo Commercial Real Estate Finance, Inc.'s website: www.apollocref.com.
  • The Company's quarterly report: available on the Company's website, Apollocref.com.
  • Forward-looking statements in the Company's press release.