Apollo Commercial Real Estate Finance Reports Second Quarter 2024 Results

Apollo Commercial Real Estate Finance, Inc. (the "Company" or "ARI") (NYSE: ARI) reported results for the quarter ended June 30, 2024, with net income attributed to common stockholders per diluted share of common stock of $0.23. 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.

The Company's results for the second quarter were impacted by the Chapter 11 bankruptcy filing of Steward Health Care, the operator of the eight hospitals in Massachusetts secured by the Company's loan, in May 2024. The loan's risk rating was downgraded from a three to a four during the quarter, and the Company estimates a Specific CECL Allowance of approximately $90 million in a subsequent quarter.

The Company has issued a detailed presentation of its quarter ended June 30, 2024 results, which can be viewed at www.apollocref.com.

Key Takeaways:

• Apollo Commercial Real Estate Finance, Inc. (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 and Distributable Earnings prior to net realized loss on investments per share of common stock were $0.35 for the quarter.
• The Company's loan to eight hospitals in Massachusetts secured by Steward Health Care has a risk rating of four, following the downgrade from a three in the second quarter.
• The Company estimates a Specific CECL Allowance of approximately $90 million in a subsequent quarter, related to the loan's risk.
• The Company has filed a detailed presentation of its quarter ended June 30, 2024 results at www.apollocref.com.
• ARI issued a news release announcing conference call details to discuss second quarter results on August 7, 2024.
• The conference call will be available to registered participants, and a replay will be posted on the Company's website following the call.

Statistics:

• Net income attributed to common stockholders per diluted share of common stock: $0.23 (Q2 2024).
• Distributable Earnings: $0.35 (Q2 2024).
• Distributable Earnings prior to net realized loss on investments per share of common stock: $0.35 (Q2 2024).
• Risk rating of the loan to eight hospitals in Massachusetts: four (Q2 2024).
• Estimated Specific CECL Allowance: $90 million (subsequent quarter).

Sources:

• "Apollo Commercial Real Estate Finance, Inc. Reports Second Quarter 2024 Results," Apollo Commercial Real Estate Finance, Inc. News Release, July 2024.
• "Apollo Commercial Real Estate Finance, Inc. Announces Second Quarter 2024 Earnings Conference Call and Webcast," Apollo Commercial Real Estate Finance, Inc. News Release, July 2024.
• www.apollocref.com.