Apollo Commercial Real Estate Finance, Inc. (the “Company” or
“ARI”) (NYSE:ARI) today reported financial results for the quarter
ended June 30, 2019.
Second Quarter 2019 Highlights
- Reported net income available to common stockholders of $56.5
million, or $0.37 per diluted share of common stock, for the three
months ended June 30, 2019; Reported net income available to
common stockholders of $117.4 million, or $0.80 per diluted share
of common stock, for the six months ended June 30, 2019;
- Reported Operating Earnings (a non-GAAP financial measure
defined below) of $56.6 million, or $0.38 per diluted share of
common stock; Operating Earnings excluding realized loss on
investments (described below), were $69.1 million, or $0.47 per
diluted share of common stock, for the three months ended
June 30, 2019; Reported Operating Earnings of $125.0 million,
or $0.88 per diluted share of common stock; Operating Earnings
excluding realized loss on investments (described below) were
$137.5 million, or $0.97 per diluted share of common stock, for the
six months ended June 30, 2019;
- Generated $85.0 million of net interest income during the
quarter from the Company’s $5.4 billion commercial real estate loan
portfolio;
- Committed $554.3 million to new commercial real estate loans
($346.1 million of which was funded at closing) and funded an
additional $78.0 million for loans closed prior to the
quarter;
- Subsequent to quarter end, committed $51.5 million (all of
which was funded at closing) to a subordinate lending investment,
bringing year-to-date loan commitments to $1.1 billion;
- Closed a $500.0 million seven-year senior secured term loan
("Term Loan B" or "TLB") priced at LIBOR plus 2.75% (99.5% original
issue discount), and entered into an interest rate swap to fix
LIBOR at 2.12%, effectively fixing ARI's all-in coupon at
4.87%;
- Issued 17,250,000 shares of common stock in an underwritten
public offering, which generated net proceeds of $314.8 million;
ARI used a portion of the net proceeds for the redemption of all of
the outstanding 8.00% Series C Cumulative Redeemable Perpetual
Preferred Stock ("Series C Preferred Stock"), which had a
liquidation preference of $172.5 million; and
- Declared a $0.46 dividend per share of common stock for the
three months ended June 30, 2019.
"ARI opportunistically capitalized on favorable conditions in
the capital markets to further strengthen the Company’s balance
sheet through a debut issuance in the Term Loan B market and
through another accretive issuance of common stock,” said Stuart
Rothstein, Chief Executive Officer and President of ARI. “With
respect to our investment activity, the market remains highly
competitive. However, the strength of Apollo’s global
commercial real estate debt platform has enabled the Company to
continue to find attractive investments, including our first
transaction in Germany, as our international presence grows."
Second Quarter 2019 Investment
ActivityNew Investments - During the second quarter of
2019, ARI committed capital to the following commercial real estate
loans:
- $514.3 million of first mortgage loans ($314.3 million of which
were funded during the quarter)
- $40.0 million subordinate loan ($31.8 million of which was
funded during the quarter)
Funding of Previously Closed Loans - During the
second quarter of 2019, ARI funded $78.0 million for loans closed
prior to the quarter.
Loan Repayments - During the second quarter of
2019, ARI received $167.7 million from loan repayments, comprised
of $167.2 million from first mortgage loans and $0.5 million from
subordinate loans. ARI did not receive any pre-payment penalties in
connection with these repayments.
Second Quarter 2019 Capital Markets
ActivityTerm Loan B - ARI closed a $500 million senior
secured TLB priced at LIBOR plus 2.75% (99.5% original issue
discount) with a seven-year term. Following the closing of the TLB,
ARI entered into an interest rate swap which effectively fixed the
interest rate on the loan to 4.87% for the full seven-year
term.
Common Stock Issuance and Preferred Stock
Redemption - ARI completed an underwritten public offering of
17,250,000 shares of common stock, including the full exercise of
the underwriters’ option to purchase additional shares, resulting
in net proceeds of $314.8 million. ARI used a portion of the net
proceeds to redeem all of the outstanding Series C Preferred Stock,
which had a liquidation preference of $172.5 million.
Quarter End Commercial Real Estate Loan
Portfolio SummaryThe following table sets forth certain
information regarding the Company’s commercial real estate loan
portfolio at June 30, 2019 ($ amounts in thousands):
Description |
|
Amortized Cost |
|
Weighted Average Coupon (1) |
|
Weighted Average All-in Yield (1)(2) |
|
Secured Debt (3) |
|
Cost of Funds |
|
Equity at cost(4) |
Commercial mortgage loans, net |
|
$ |
4,206,754 |
|
|
6.7% |
|
|
7.5% |
|
|
$ |
1,801,303 |
|
|
3.9% |
|
|
$ |
2,405,451 |
|
Subordinate loans, net |
|
1,236,990 |
|
|
13.2% |
|
|
14.1% |
|
|
— |
|
|
— |
|
|
1,236,990 |
|
Total/Weighted-Average |
|
$ |
5,443,744 |
|
|
8.2% |
|
|
9.0% |
|
|
$ |
1,801,303 |
|
|
3.9% |
|
|
$ |
3,642,441 |
|
(1) Weighted-Average Coupon and
Weighted-Average All-in Yield are based on the applicable benchmark
rates as of June 30, 2019 on the floating rate loans.(2)
Weighted-Average All-in Yield includes the
amortization of deferred origination fees, loan origination costs
and accrual of both extension and exit
fees.(3) Gross of deferred financing costs
of $18.2 million.(4) Represents loan
portfolio at amortized cost less secured debt arrangements
outstanding.
Book ValueThe Company’s book
value per share of common stock was $16.30 at June 30, 2019 as
compared to book value per share of common stock of $16.20 at
December 31, 2018. The increase is primarily driven by the
common equity issuance, partially offset by the loss on term loan
interest rate swap.
Subsequent EventsThe following
events occurred subsequent to quarter end:New Investments - ARI
committed $51.5 million (all of which was funded at closing) to a
subordinate lending investment.
Funding of Previously Closed Loans - ARI funded
$54.2 million for previously closed loans.
Loan Repayments - ARI received $68.2 million
from loan repayments, including $67.9 million from first mortgage
loans and $0.3 million from subordinate loans.
Operating Earnings
Operating Earnings is a non-GAAP financial measure that the
Company defines as net income available to common stockholders,
computed in accordance with GAAP, adjusted for
(i) equity-based compensation expense (a portion of which may
become cash-based upon final vesting and settlement of awards
should the holder elect net share settlement to satisfy income tax
withholding), (ii) any unrealized gains or losses or other
non-cash items included in net income available to common
stockholders, (iii) unrealized income from unconsolidated joint
ventures, (iv) foreign currency gains (losses), other than (a)
realized gains/(losses) related to interest income, and (b) forward
point gains/(losses) realized on the Company's foreign currency
hedges, (v) the non-cash amortization expense related to the
reclassification of a portion of the Company's convertible senior
notes to stockholders’ equity in accordance with GAAP, and (vi)
provision for loan losses and impairments. Beginning with the
quarter ended September 30, 2016, ARI slightly modified its
definition of Operating Earnings to include realized gains (losses)
on currency swaps related to interest income on investments
denominated in a currency other than U.S. dollars. In addition,
beginning with the quarter ended December 31, 2018, ARI further
modified its definition of Operating Earnings to include the impact
from forward points on its foreign currency hedges, which reflect
the interest rate differentials between the applicable base rate
for the Company's foreign currency investments and USD LIBOR. These
forward contracts effectively convert the rate exposure to USD
LIBOR, resulting in additional interest income earned in U.S.
dollar terms. These amounts are not included in GAAP net income. In
order to conform to the 2018 year end presentation, which
incorporates this modification, prior year Operating Earnings
results presented below have been modified accordingly. Operating
Earnings may also be adjusted to exclude certain other non-cash
items, as determined by the Manager and approved by a majority of
the Company's independent directors.
In order to evaluate the effective yield of the portfolio, the
Company uses Operating Earnings to reflect the net investment
income of its portfolio as adjusted to include the net interest
expense related to its derivative instruments. Operating Earnings
allows the Company to isolate the net interest expense associated
with its swaps in order to monitor and project its full cost of
borrowings. The Company also believes that its investors use
Operating Earnings, or a comparable supplemental performance
measure, to evaluate and compare the performance of the Company and
its peers and, as such, the Company believes that the disclosure of
Operating Earnings is useful to its investors. Forward points
effectively convert the Company's foreign rate exposure to USD
LIBOR, which the Company believes is a better reflection of its
operating results and ARI believes the inclusion of the resulting
gain or loss in Operating Earnings is useful to its investors. The
Company believes it is useful to its investors to present Operating
Earnings excluding realized loss on investments to reflect its
operating results. The Company's operating results are primarily
comprised of earning interest income on its investments net of
borrowing and administrative costs.
A significant limitation associated with Operating Earnings as a
measure of the Company's financial performance over any period is
that it excludes unrealized gains (losses) from investments. In
addition, the Company's presentation of Operating Earnings may not
be comparable to similarly-titled measures of other companies, who
may use different calculations. As a result, Operating Earnings
should not be considered as a substitute for ARI's GAAP net income
as a measure of the Company's financial performance or any measure
of the Company's liquidity under GAAP.
Reconciliation of Operating Earnings to
Net Income Available to Common StockholdersThe table below
reconciles Operating Earnings and Operating Earnings per share of
common stock with net income available to common stockholders and
net income available to common stockholders per share of common
stock for the three and six months ended June 30, 2019 and
June 30, 2018, respectively ($ amounts in thousands, except
per share data):
|
|
|
|
|
|
|
|
|
Three months ended |
|
Earnings Per Share(1) |
|
Three months ended |
|
Earnings Per Share(1) |
|
June 30, 2019 |
|
|
June 30, 2018 |
|
Operating Earnings: |
|
|
|
|
|
|
|
Net income
available to common stockholders |
$ |
56,505 |
|
|
$ |
0.38 |
|
|
$ |
48,512 |
|
|
$ |
0.39 |
|
Adjustments: |
|
|
|
|
|
|
|
Equity-based compensation expense |
4,294 |
|
|
0.03 |
|
|
4,014 |
|
|
0.03 |
|
Unrealized loss on interest rate swap |
13,113 |
|
|
0.09 |
|
|
— |
|
|
|
Gain on currency forwards |
(11,186 |
) |
|
(0.07 |
) |
|
(33,538 |
) |
|
(0.27 |
) |
Foreign currency loss, net(2) |
7,777 |
|
|
0.05 |
|
|
29,649 |
|
|
0.24 |
|
Net realized gains relating to interest income on foreign currency
hedges, net |
325 |
|
|
— |
|
|
148 |
|
|
— |
|
Net realized gains relating to forward points on foreign currency
hedges, net |
44 |
|
|
— |
|
|
1 |
|
|
— |
|
Amortization of the convertible senior notes related to equity
reclassification |
721 |
|
|
— |
|
|
1,156 |
|
|
0.01 |
|
(Reversal of) Provision for loan losses and impairments(4) |
(15,000 |
) |
|
(0.10 |
) |
|
5,000 |
|
|
0.04 |
|
Total adjustments: |
88 |
|
|
— |
|
|
6,430 |
|
|
0.05 |
|
Operating Earnings(3) |
$ |
56,593 |
|
|
$ |
0.38 |
|
|
$ |
54,942 |
|
|
$ |
0.44 |
|
|
|
|
|
|
|
|
|
Realized loss on investments(4) |
12,513 |
|
|
$ |
0.09 |
|
|
— |
|
|
— |
|
Operating Earnings excluding realized loss on investments |
$ |
69,106 |
|
|
$ |
0.47 |
|
|
$ |
54,942 |
|
|
$ |
0.44 |
|
Basic weighted-average shares of common stock outstanding |
145,567,963 |
|
|
|
|
123,019,993 |
|
|
|
Weighted-average diluted shares - Operating
Earnings |
|
|
|
|
|
|
|
Weighted-average diluted shares - GAAP |
174,101,234 |
|
|
|
|
124,629,317 |
|
|
|
Weighted-average unvested RSUs |
1,846,173 |
|
|
|
|
— |
|
|
|
Reversal of hypothetical conversion of the convertible senior
notes(5) |
(28,533,271 |
) |
|
|
|
— |
|
|
|
Weighted-average diluted shares - Operating Earnings |
147,414,136 |
|
|
|
|
124,629,317 |
|
|
|
(1) Certain per share amounts rounds to
zero.(2) In order to conform to the 2019
presentation of the reconciliation from net income available to
common stockholders to Operating Earnings, $0.1 million was
reclassified from Foreign currency loss, net for the three months
ended June 30, 2018.(3) For the computation
of diluted Operating Earnings per share of common stock, for the
three months ended June 30, 2018, $7.9 million of interest
expense related to the Notes is not deducted from the numerator and
the potentially dilutive shares related to the Notes are excluded
from the denominator.(4) The underlying
collateral on a commercial mortgage loan and a contiguous
subordinate loan secured by a multifamily property located in
Williston, ND was sold resulting in a realized loss of $12.5
million. Consequently, the previously recorded $15.0 million loan
loss provision was reversed.(5) See
"Management's Discussion and Analysis of Financial Condition and
Results of Operations-Non-GAAP Financial Measures-Operating
Earnings" in the Company's quarterly report on Form 10-Q for the
quarter ended June 30, 2019 for more information.
|
Computation of Share Count for Operating
Earnings |
Basic weighted-average shares of common stock outstanding |
145,567,963 |
|
|
|
|
123,019,993 |
|
|
|
Weighted-average unvested RSUs |
1,846,173 |
|
|
|
|
1,609,324 |
|
|
|
Weighted-average diluted
shares - Operating Earnings |
147,414,136 |
|
|
|
|
124,629,317 |
|
|
|
|
Six months ended |
|
Earnings Per Share(1) |
|
Six months ended |
|
Earnings Per Share(1) |
|
June 30, 2019 |
|
|
June 30, 2018 |
|
Operating Earnings: |
|
|
|
|
|
|
|
Net income available to common stockholders |
$ |
117,428 |
|
|
$ |
0.83 |
|
|
$ |
91,110 |
|
|
$ |
0.77 |
|
Adjustments: |
|
|
|
|
|
|
|
Equity-based compensation
expense |
8,195 |
|
|
0.06 |
|
|
7,356 |
|
|
0.06 |
|
Unrealized loss on interest
rate swap |
13,113 |
|
|
0.09 |
|
|
— |
|
|
— |
|
Gain on currency forwards |
(4,466 |
) |
|
(0.03 |
) |
|
(22,506 |
) |
|
(0.19 |
) |
Foreign currency loss,
net(2) |
883 |
|
|
0.01 |
|
|
19,524 |
|
|
0.17 |
|
Net realized gains (losses)
relating to interest income on foreign currency hedges, net |
744 |
|
|
— |
|
|
(89 |
) |
|
— |
|
Net realized gains relating to
forward points on foreign currency hedges, net |
2,476 |
|
|
0.02 |
|
|
175 |
|
|
— |
|
Amortization of the
convertible senior notes related to equity reclassification |
1,630 |
|
|
0.01 |
|
|
2,296 |
|
|
0.02 |
|
(Reversal of) Provision for
loan losses and impairments(4) |
(15,000 |
) |
|
(0.11 |
) |
|
5,000 |
|
|
0.04 |
|
Total adjustments: |
7,575 |
|
|
0.05 |
|
|
11,756 |
|
|
0.10 |
|
Operating Earnings(3) |
$ |
125,003 |
|
|
$ |
0.88 |
|
|
$ |
102,866 |
|
|
$ |
0.87 |
|
|
|
|
|
|
|
|
|
Realized loss on
investments(4) |
12,513 |
|
|
0.09 |
|
|
— |
|
|
— |
|
Operating Earnings excluding
realized loss on investments |
$ |
137,516 |
|
|
$ |
0.97 |
|
|
$ |
102,866 |
|
|
$ |
0.87 |
|
Basic weighted-average shares of common stock outstanding |
140,117,813 |
|
|
|
|
116,651,305 |
|
|
|
Weighted-average diluted shares - Operating
Earnings |
|
|
|
|
|
|
|
Weighted-average diluted shares - GAAP |
169,418,177 |
|
|
|
|
118,281,153 |
|
|
|
Weighted-average unvested RSUs |
1,847,860 |
|
|
|
|
— |
|
|
|
Reversal of hypothetical conversion of the convertible senior
notes(5) |
(29,300,364 |
) |
|
|
|
— |
|
|
|
Weighted-average diluted shares - Operating Earnings |
141,965,673 |
|
|
|
|
118,281,153 |
|
|
|
(1) Certain per share amounts rounds to
zero.(2) In order to conform to the 2019
presentation of the reconciliation from net income available to
common stockholders to Operating Earnings, $(0.1) million was
reclassified from Foreign currency loss, net for the six months
ended June 30, 2018.(3) For the computation of
diluted Operating Earnings per share of common stock, for the six
months ended June 30, 2019, $16.4 million million of interest
expense related to the Notes is not deducted from the numerator and
the potentially dilutive shares related to the Notes are excluded
from the denominator.(4) The underlying
collateral on a commercial mortgage loan and a contiguous
subordinate loan secured by a multifamily property located in
Williston, ND was sold resulting in a realized loss of $12.5
million. Consequently, the previously recorded $15.0 million loan
loss provision was reversed.(5) See
"Management's Discussion and Analysis of Financial Condition and
Results of Operations-Non-GAAP Financial Measures-Operating
Earnings" in the Company's quarterly report on Form 10-Q for the
quarter ended June 30, 2019 for more information.
|
|
|
|
|
|
|
|
Computation of Share
Count for Operating Earnings |
|
|
|
|
|
|
|
Basic weighted-average shares of common stock outstanding |
140,117,813 |
|
|
|
|
116,651,305 |
|
|
|
Weighted-average unvested
RSUs |
1,847,860 |
|
|
|
|
1,629,848 |
|
|
|
Weighted-average diluted
shares - Operating Earnings |
141,965,673 |
|
|
|
|
118,281,153 |
|
|
|
Teleconference Details:The
Company will host a conference call to discuss its financial
results on Thursday, July 25, 2019 at 10:00 a.m. ET. Members of the
public who are interested in participating in the Company’s second
quarter 2019 earnings teleconference call should dial from the
U.S., (877) 331-6553, or from outside the U.S., (760) 666-3769,
shortly before 10:00 a.m. and reference the Apollo Commercial Real
Estate Finance, Inc. Teleconference Call (number 5877424). Please
note the teleconference call will be available for replay beginning
at 1:00 p.m. on Thursday, July 25, 2019 and ending at midnight on
Thursday, August 1, 2019. To access the replay, callers from the
U.S. should dial (855) 859-2056 and callers from outside the U.S.
should dial (404) 537-3406, and enter conference identification
number 5877424.
Webcast:The conference call
will also be available on the Company's website at
www.apolloreit.com. To listen to a live broadcast, please go to the
site at least 15 minutes prior to the scheduled start time in order
to register, download and install any necessary audio software. A
replay of the call will also be available for 30 days on the
Company's website.
Supplemental InformationThe
Company provides supplemental financial information to offer more
transparency into its results and make its reporting more
informative and easier to follow. The supplemental financial
information is available in the investor relations section of the
Company's website at www.apolloreit.com.
About Apollo Commercial Real Estate
Finance, Inc.Apollo Commercial Real Estate Finance, Inc.
(NYSE: ARI) is a real estate investment trust that primarily
originates, acquires, invests in and manages performing commercial
real estate mortgage loans, subordinate financings, and other
commercial real estate-related debt investments. The Company is
externally managed and advised by ACREFI Management, LLC, a
Delaware limited liability company and an indirect subsidiary of
Apollo Global Management, LLC, a leading global alternative
investment manager with approximately $303.0 billion of assets
under management as of March 31, 2019.
Additional information can be found on the
Company's website at www.apolloreit.com.
Dividend Reinvestment PlanThe
Company adopted a Direct Stock Purchase and Dividend Reinvestment
Plan (the “Plan”). The Plan provides new investors and existing
holders of the Company’s common stock with a convenient and
economical method to purchase shares of its common stock. By
participating in the Plan, participants may purchase additional
shares of the Company’s common stock by reinvesting some or all of
the cash dividends received on their shares of the Company’s common
stock. In addition, the Plan permits participants to make optional
cash investments of up to $10,000 per month, and, with the
Company’s prior approval, optional cash investments in excess of
$10,000 per month, for the purchase of additional shares of the
Company’s common stock.
The Plan is administered by Equiniti Trust
Company (“Equiniti”). Stockholders and other persons may obtain a
copy of the Plan prospectus and an enrollment form by contacting
Equiniti at (800) 468-9716 or (651) 450-4064, if outside the United
States, or visiting Equiniti’s website at
www.shareowneronline.com.
This communication does not constitute an offer
to sell or the solicitation of an offer to buy securities.
Forward-Looking
StatementsCertain statements contained in this press
release constitute forward-looking statements as such term is
defined in Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and such statements are intended to be covered by the safe harbor
provided by the same. Forward-looking statements are subject to
substantial risks and uncertainties, many of which are difficult to
predict and are generally beyond the Company's control. These
forward-looking statements include information about possible or
assumed future results of the Company's business, financial
condition, liquidity, results of operations, plans and objectives.
When used in this release, the words believe, expect, anticipate,
estimate, plan, continue, intend, should, may or similar
expressions, are intended to identify forward-looking statements.
Statements regarding the following subjects, among others, may be
forward-looking: the return on equity; the yield on investments;
the ability to borrow to finance assets; the Company’s ability to
deploy the proceeds of its capital raises or acquire its target
assets; and risks associated with investing in real estate assets,
including changes in business conditions and the general economy.
For a further list and description of such risks and uncertainties,
see the reports filed by the Company with the Securities and
Exchange Commission. The forward-looking statements, and other
risks, uncertainties and factors are based on the Company's
beliefs, assumptions and expectations of its future performance,
taking into account all information currently available to the
Company. Forward-looking statements are not predictions of future
events. The Company disclaims any intention or obligation to update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, except as required by
law.
Apollo Commercial Real Estate Finance,
Inc. and SubsidiariesCondensed Consolidated
Balance Sheets (in thousands-except share data)
|
June 30, 2019 |
|
December 31, 2018 |
Assets: |
(Unaudited) |
|
|
Cash and cash equivalents |
$ |
116,472 |
|
|
$ |
109,806 |
|
Commercial mortgage loans, net (includes $3,638,419 and $3,197,900
pledged as collateral under secured debt arrangements in 2019 and
2018, respectively) |
4,206,754 |
|
|
3,878,981 |
|
Subordinate loans, net |
1,236,990 |
|
|
1,048,612 |
|
Other assets |
40,072 |
|
|
33,720 |
|
Derivative assets |
19,502 |
|
|
23,700 |
|
Loan proceeds held by servicer |
4,619 |
|
|
1,000 |
|
Total Assets |
$ |
5,624,409 |
|
|
$ |
5,095,819 |
|
Liabilities and Stockholders'
Equity |
|
|
|
Liabilities: |
|
|
|
Secured debt arrangements, net (net of deferred financing costs of
$18,246 and $17,555 in 2019 and 2018, respectively) |
$ |
1,783,057 |
|
|
$ |
1,879,522 |
|
Convertible senior notes, net |
559,619 |
|
|
592,000 |
|
Senior secured term loan, net (net of deferred financing costs of
$7,333 and $0 in 2019 and 2018, respectively) |
490,226 |
|
|
— |
|
Derivative liabilities |
13,113 |
|
|
— |
|
Accounts payable, accrued expenses and other liabilities |
96,736 |
|
|
104,746 |
|
Payable to related party |
10,259 |
|
|
9,804 |
|
Total Liabilities |
2,953,010 |
|
|
2,586,072 |
|
Commitments and Contingencies (see Note 15) |
|
|
|
Stockholders’ Equity: |
|
|
|
Preferred stock, $0.01 par value, 50,000,000 shares
authorized: |
|
|
|
Series B preferred stock, 6,770,393 shares issued and outstanding
($169,260 liquidation preference) |
68 |
|
|
68 |
|
Series C preferred stock, 0 and 6,900,000 issued and outstanding
($0 and $172,500 liquidation preference in 2019 and 2018),
respectively |
— |
|
|
69 |
|
Common stock, $0.01 par value, 450,000,000 shares authorized,
153,531,597 and 133,853,565 shares issued and outstanding in 2019
and 2018, respectively |
1,535 |
|
|
1,339 |
|
Additional paid-in-capital |
2,817,542 |
|
|
2,638,441 |
|
Accumulated deficit |
(147,746 |
) |
|
(130,170 |
) |
Total Stockholders’ Equity |
2,671,399 |
|
|
2,509,747 |
|
Total Liabilities and Stockholders’ Equity |
$ |
5,624,409 |
|
|
$ |
5,095,819 |
|
|
|
|
|
|
|
|
|
Apollo Commercial Real Estate Finance,
Inc. and SubsidiariesCondensed Consolidated
Statement of Operations (Unaudited)(in
thousands-except share and per share data)
|
Three months ended
June 30, |
|
Six months ended
June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Net interest income: |
|
|
|
|
|
|
|
Interest income from commercial mortgage loans |
$ |
77,458 |
|
|
$ |
65,141 |
|
|
$ |
155,744 |
|
|
$ |
117,255 |
|
Interest income from subordinate loans |
41,043 |
|
|
34,075 |
|
|
81,882 |
|
|
67,928 |
|
Interest expense |
(33,511 |
) |
|
(28,437 |
) |
|
(69,806 |
) |
|
(51,177 |
) |
Net interest income |
84,990 |
|
|
70,779 |
|
|
167,820 |
|
|
134,006 |
|
Operating expenses: |
|
|
|
|
|
|
|
General and administrative expenses (includes equity-based
compensation of $4,294 and $8,195 in 2019 and $4,014 and $7,356 in
2018, respectively) |
(6,574 |
) |
|
(5,652 |
) |
|
(12,725 |
) |
|
(10,650 |
) |
Management fees to related party |
(10,259 |
) |
|
(9,013 |
) |
|
(19,872 |
) |
|
(17,105 |
) |
Total operating expenses |
(16,833 |
) |
|
(14,665 |
) |
|
(32,597 |
) |
|
(27,755 |
) |
Other income |
484 |
|
|
343 |
|
|
1,002 |
|
|
546 |
|
Reversal of (Provision for) loan losses and impairments |
15,000 |
|
|
(5,000 |
) |
|
15,000 |
|
|
(5,000 |
) |
Realized loss on investments |
(12,513 |
) |
|
— |
|
|
(12,513 |
) |
|
— |
|
Foreign currency loss |
(7,777 |
) |
|
(29,649 |
) |
|
(883 |
) |
|
(19,524 |
) |
Gain on foreign currency forwards (includes unrealized gains
(losses) of $10,787 and $(4,198) in 2019 and $24,796 and $15,941 in
2018, respectively) |
11,186 |
|
|
33,538 |
|
|
4,466 |
|
|
22,506 |
|
Unrealized loss on interest rate swap |
(13,113 |
) |
|
— |
|
|
(13,113 |
) |
|
— |
|
Net income |
$ |
61,424 |
|
|
$ |
55,346 |
|
|
$ |
129,182 |
|
|
$ |
104,779 |
|
Preferred dividends |
(4,919 |
) |
|
(6,834 |
) |
|
(11,754 |
) |
|
(13,669 |
) |
Net income available to common stockholders |
$ |
56,505 |
|
|
$ |
48,512 |
|
|
$ |
117,428 |
|
|
$ |
91,110 |
|
Net income per share of common
stock: |
|
|
|
|
|
|
|
Basic |
$ |
0.38 |
|
|
$ |
0.39 |
|
|
$ |
0.83 |
|
|
$ |
0.78 |
|
Diluted |
$ |
0.37 |
|
|
$ |
0.39 |
|
|
$ |
0.80 |
|
|
$ |
0.78 |
|
Basic weighted-average shares of common stock outstanding |
145,567,963 |
|
|
123,019,993 |
|
|
140,117,813 |
|
|
116,651,305 |
|
Diluted weighted-average shares of common stock
outstanding |
174,101,234 |
|
|
124,629,317 |
|
|
169,418,177 |
|
|
118,281,153 |
|
Dividend declared per share of common stock |
$ |
0.46 |
|
|
$ |
0.46 |
|
|
$ |
0.92 |
|
|
$ |
0.92 |
|
CONTACT: |
|
|
Hilary Ginsberg |
|
|
|
(212) 822-0767 |
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