Apollo Commerical Finance (ARI) came out with quarterly earnings of $0.32 per share, beating the Zacks Consensus Estimate of $0.23 per share. This compares to earnings of $0.36 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 39.13%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.25 per share when it actually produced earnings of $0.31, delivering a surprise of 24%.Over the last ...

Market and Economic Risks - The company operates in a competitive market for investment opportunities, which may limit its ability to acquire desirable target assets[16]. - Recent macroeconomic trends, including inflation and higher interest rates, may negatively impact the company's financial condition and results[23]. - A prolonged economic slowdown or recession could impair the company's assets and harm its operations, particularly if accompanied by declining real estate values[139]. - Recent macroeconomic trends, including inflation and higher interest rates, may adversely affect the company's financial condition and results of operations[140]. Regulatory and Compliance Risks - The company may face risks related to governmental intervention and regulatory reform in financial markets, potentially impacting its operations[17]. - To qualify as a REIT, the company must distribute at least 90% of its taxable income annually, which may limit its ability to pursue advantageous investments[171]. - Non-compliance with REIT requirements could lead to U.S. federal income tax liabilities, reducing cash available for distribution to stockholders[169]. - The company may fail to qualify as a REIT if certain loans do not qualify as real estate assets, which could lead to significant tax penalties[180]. - The IRS could challenge the treatment of mezzanine loans and preferred equity investments as debt, potentially jeopardizing REIT qualification[181]. - The company may be required to report taxable income that exceeds the economic income realized from certain investments, affecting cash flow[182]. - Taxable mortgage pool rules may increase taxes for the company and its stockholders, limiting future securitization methods[184]. - Adverse legislative or regulatory tax changes could negatively impact the market price of the company's common stock[190]. Financial and Investment Risks - Access to financing sources may be limited, affecting the company's ability to enhance returns and increasing leverage risk[18]. - The company may not achieve its weighted-average all-in yield on assets, leading to significantly lower future returns than anticipated[20]. - The lack of liquidity of the company's assets may adversely affect its ability to value and sell them[21]. - The company may face significant losses from B Notes and mezzanine loans due to their subordinated nature and the risks associated with borrower defaults[136]. - The company has not adopted any limit on investments in non-investment grade debt securities, which have a higher risk of default[137]. - The company may face risks of default on concentrated assets, which could reduce net income and stock value[30]. - Foreclosure processes for commercial mortgage loans can be lengthy and expensive, negatively affecting anticipated returns[33]. Management and Operational Risks - The company is dependent on its Manager and key personnel for success, with potential conflicts of interest affecting stockholder interests[24]. - The company relies entirely on the Manager for investment and advisory services, with no employees of its own, making it vulnerable to the Manager's performance and personnel stability[161]. - The Manager's liability is limited under the Management Agreement, which could lead to poor performance or losses for which the Manager would not be liable[152]. - The base management fee is based on stockholders' equity, which may not incentivize the Manager to maximize risk-adjusted returns, potentially leading to significant fees despite net losses[157][158]. - The Manager operates under broad investment guidelines, allowing for riskier transactions without prior board approval, which could adversely affect profitability and risk profile[159]. - The company may co-invest with third parties, which could expose it to risks related to decision-making authority and potential disputes[145]. - The company faces risks related to real estate investments, including changes in laws, environmental liabilities, and potential uninsured losses[142]. Management Agreement and Brand Risks - The Management Agreement with the Manager was automatically renewed for a successive one-year term in September 2024, with annual renewal thereafter unless terminated with 180 days prior notice[155]. - Termination of the Management Agreement without cause incurs a termination payment equal to three times the average annual base management fee earned by the Manager during the prior 24 months[154]. - The license agreement with Apollo allows the company to use the "Apollo" name as long as the Management Agreement is in effect, but termination could harm brand recognition[156]. - The Manager's broad discretion in investment decisions may lead to underperformance or losses, impacting the company's ability to pay dividends and affecting stock price[158]. Cash Management and Financial Stability - The company regularly maintains cash balances exceeding the Federal Deposit Insurance Corporation insurance limit, which could pose a risk if the bank fails[144]. - The company may face tax liabilities that could reduce cash flow, even if it qualifies as a REIT[173]. - ACREFI TRS, ARM TRS, and ACREFI III TRS will be subject to U.S. federal, state, and local corporate taxes, impacting cash available for distribution[174].

NEW YORK, Feb. 10, 2025 (GLOBE NEWSWIRE) -- Apollo Commercial Real Estate Finance, Inc. (the “Company” or “ARI”) (NYSE:ARI) today reported results for the quarter and year ended December 31, 2024. Net income (loss) attributable to common stockholders per diluted share of common stock was $0.27 and ($0.97) for the quarter and year ended December 31, 2024, respectively. Distributable Earnings (a non-GAAP financial measure defined below) and Distributable Earnings prior to net realized loss on investments per ...

The market expects Apollo Commerical Finance (ARI) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on February 10, 2025, might help the stock move higher if these ...

NEW YORK, Jan. 24, 2025 (GLOBE NEWSWIRE) -- Apollo Commercial Real Estate Finance, Inc. (the “Company” or “ARI”) (NYSE:ARI) today announced the estimated federal income tax treatment of the Company’s 2024 distributions on its common stock (CUSIP #03762U105) and its 7.25% Series B-1 Cumulative Redeemable Perpetual Preferred Stock. The federal income tax classification of the 2024 distributions on the Company’s common stock as it is expected to be reported on Form 1099-DIV is set forth in the following table ...

NEW YORK, Jan. 22, 2025 (GLOBE NEWSWIRE) -- Apollo Commercial Real Estate Finance, Inc. (the “Company” or “ARI”) (NYSE:ARI), today announced the Company will hold a conference call to review its fourth quarter and full year 2024 financial results on Tuesday, February 11, 2025 at 10:00 a.m. Eastern Time. The Company’s fourth quarter and full year 2024 financial results will be released after the market closes on Monday, February 10, 2025. During the conference call, Company officers will review fourth quarte ...

Company Performance - The company originated $782 million of loans in the fourth quarter of 2024, bringing annual loan originations to $1.9 billion for the year [1][2] - During the fourth quarter of 2024, the company funded $97 million for loans previously closed [3] - The company received $0.8 billion from loan repayments in the fourth quarter of 2024, bringing total repayments for the year to $2.5 billion [4] Loan Portfolio Details - Of the $0.8 billion in loan repayments, approximately 41% came from loans secured by properties in the United States and 59% came from loans secured by properties in the United Kingdom and Europe [4] - The repaid loans were secured by retail, hotel, residential, mixed-use, and industrial properties [4] Company Overview - The company 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 [5] - The company is externally managed and advised by ACREFI Management, LLC, an indirect subsidiary of Apollo Global Management, Inc [5] - Apollo Global Management, Inc had approximately $733 billion of assets under management as of September 30, 2024 [5]

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Apollo Commercial Real Estate Finance Inc. (NYSE: ARI ) slashed its dividend from $0.35 to $0.25 per share in September, reflecting a 29% decline due to the trust’s non-performing loans, particularly in its office loan portfolio.A financial researcher and avid investor with a keen eye for innovation and disruption, as well as growth buy-outs and value stocks. Keeping an eye on the pace of high tech and early growth companies, I write about current events and the biggest news surrounding the industry, and st ...

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