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]

Hand with pen over financial data on computer monitorgettyIt’s hard to find a hater right now.Wall Street analysts have Buy ratings on more than 75% of the S&P 500 at the moment.Give us the Sells. That’s right. We contrarians are not afraid to dumpster dive for dividend value!Today we’ll slam a six-pack of analyst pans yielding between 6.1% and 11.8%. We searched far and wide for these loathed names because, as I write, there are but two blue chips in the Sell bin!Sells are where the party is at. Think abou ...

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 ...

Take advantage of the currently offered discount on annual memberships and give CIP a try. The offer comes with a 11 month money guarantee , for first time members.Conservative Income Portfolio targets the best value stocks with the highest margins of safety. The volatility of these investments is further lowered using the best priced options. Our Enhanced Equity Income Solutions Portfolio is designed to reduce volatility while generating 7-9% yields.On our last coverage of Apollo Commercial Real Estate Fin ...

Financial Data and Key Metrics Changes - Apollo Commercial Real Estate Finance reported distributable earnings prior to realized loss of $44 million or $0.31 per share for Q3 2024, while GAAP net loss attributable to common stockholders was $95 million or negative $0.69 per diluted share, including a $128 million realized loss related to a loan secured by hospitals in Massachusetts [17][18][25] - The portfolio ended the quarter with a carrying value of $7.8 billion and a weighted average leveraged yield of 8.5% [20][25] - The company received $953 million in loan repayments during the quarter, exceeding the combined repayments of the first two quarters by over $190 million [20][35] Business Line Data and Key Metrics Changes - The company committed $597 million across two new loans and one refinancing transaction during the quarter, alongside funding an additional $93 million for previously closed loans [20] - A €200 million loan secured by office assets in Germany was downgraded to a risk rating of 4, although it remains current on interest payments [22] Market Data and Key Metrics Changes - The real estate market is showing signs of renewal, with increased transaction volume attributed to a recent Fed interest rate cut and overall economic strength [5][6] - The lending environment remains favorable, with opportunities to deploy capital into loans secured by properties at reset valuations [6] Company Strategy and Development Direction - The company is focused on proactive asset management and resolving underperforming loans to maximize recovery value [7] - The board's decision to set the Q3 dividend at $0.25 per share reflects the impact of remaining watch-list loans and anticipated declines in floating interest rate benchmarks [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to achieve the value carried on the balance sheet for the Massachusetts properties, despite challenges in converting such properties [34] - The company anticipates continued strong repayments and a robust pipeline of new originations, with expectations for capital deployment to increase operating earnings potential [36][45] Other Important Information - The company has no corporate debt maturities until May 2026 and ended the quarter with over $300 million in total liquidity [25] - The retail component at 111 West 57th Street has been leased to Bonhams, expected to open in the second half of 2025, contributing to positive market sentiment [13][54] Q&A Session Summary Question: Update on the Massachusetts loan status - The company retains two closed hospitals and a $41 million loan against one sold hospital, with a total of $60 million in assets still on the books [26][28] Question: Details on the German office loan downgrade - The loan is a lease-up play, and while leasing is slower than anticipated, the company expects to recover full value [30] Question: Outlook on repayments and originations - Management expects repayments to remain strong, with a robust pipeline of new originations, and believes leverage will stay roughly the same [45][47] Question: Interest expense increase despite declining rates - Management will circle back to address the specific drivers of the interest expense increase [52] Question: Update on sales at 111 West 57th Street - Four units are under contract, with expected net proceeds of approximately $55 million, which will reduce the outstanding senior loan [54]