Apollo Commercial Real Estate Finance, Inc. (the “Company” or
“ARI”) (NYSE:ARI) today reported financial results for the quarter
ended September 30, 2019.
Third Quarter 2019
Highlights
- Reported net income available to common stockholders for the
three months ended September 30, 2019 of $25.7 million, or
$0.16 per diluted share of common stock; these amounts reflect (i)
a provision for loan losses totaling $32.0 million, or $0.21 per
share of common stock, recorded in connection with a first mortgage
loan secured by a retail center in Cincinnati, OH; and (ii) a
provision for loan losses totaling $3.0 million, or $0.02 per share
of common stock, recorded in connection with a first mortgage loan
secured by a residential for sale property in Bethesda, MD.
Reported net income available to common stockholders for the nine
months ended September 30, 2019 of $143.1 million, or $0.97
per diluted share of common stock;
- Reported Operating Earnings (a non-GAAP financial measure
defined below) for the three months ended September 30, 2019
of $72.6 million, or $0.47 per diluted share of common stock;
Reported Operating Earnings for the nine months ended
September 30, 2019 of $197.6 million, or $1.35 per diluted
share of common stock; Operating Earnings excluding realized loss
on investments and loss on early extinguishment of debt (described
below) for the nine months ended September 30, 2019 were
$210.1 million, or $1.43 per diluted share of common stock;
- Generated $85.2 million of net interest income during the
quarter from the Company’s $6.1 billion commercial real estate loan
portfolio;
- Committed $958.3 million to new commercial real estate loans
(all of which was funded at closing) and funded an additional
$126.1 million for loans closed prior to the quarter;
- Subsequent to quarter end, committed $548.3 million ($464.3
million of which was funded at closing) to first mortgage loans,
bringing year-to-date loan commitments to $2.5 billion;
- Amended the Company's master repurchase agreement with JPMorgan
Chase Bank to increase the total borrowing capacity to $1.3
billion;
- Amended the Company's master repurchase agreement with Deutsche
Bank to increase the borrowing capacity to $1.25 billion; and
- Declared a $0.46 dividend per share of common stock for the
three months ended September 30, 2019.
"ARI’s third quarter reflected our continued strong
originations, highlighted by increased activity throughout Europe,
and resulted in a loan portfolio that surpassed the $6 billion
mark," said Stuart Rothstein, Chief Executive Officer and President
of ARI.
Third Quarter 2019 Investment
ActivityNew Investments - During the third quarter of
2019, ARI committed capital to the following commercial real estate
loans:
- $754.1 million of first mortgage loans (all of which was funded
during the quarter)
- $204.2 million of subordinate loans and other lending assets
(all of which was funded during the quarter)
Funding of Previously Closed Loans - During the
third quarter of 2019, ARI funded $126.1 million for loans closed
prior to the quarter.
Loan Repayments - During the third quarter of
2019, ARI received $353.4 million from loan repayments, comprised
of $218.4 million from first mortgage loans and $135.0 million from
subordinate loans. ARI received $0.3 million of pre-payment
penalties and accelerated fees in connection with these
repayments.
Quarter End Commercial Real Estate Loan
Portfolio SummaryThe following table sets forth certain
information regarding the Company’s commercial real estate loan
portfolio at September 30, 2019 ($ 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 |
|
$ |
4,779,501 |
|
|
6.2 |
% |
|
6.8 |
% |
|
$ |
2,559,318 |
|
|
3.9 |
% |
|
$ |
2,220,183 |
|
Subordinate loans and other
lending assets, net |
|
1,335,073 |
|
|
12.0 |
% |
|
13.2 |
% |
|
— |
|
|
— |
|
|
1,335,073 |
|
Total/Weighted-Average |
|
$ |
6,114,574 |
|
|
7.5 |
% |
|
8.2 |
% |
|
$ |
2,559,318 |
|
|
3.9 |
% |
|
$ |
3,555,256 |
|
(1) Weighted-Average Coupon and Weighted-Average
All-in Yield are based on the applicable benchmark rates as of
September 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 $18.0 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 $16.02 at September 30,
2019 as compared to book value per share of common stock of $16.20
at December 31, 2018. The decrease is primarily driven by
provisions for loan losses and the unrealized loss on our interest
rate swap in connection with our senior secured term loan,
partially offset by our common equity issuance during the first
quarter.
Subsequent EventsThe following
events occurred subsequent to quarter end:New Investments - ARI
committed $548.3 million ($464.3 million of which was funded at
closing) to first mortgage loans.
Funding of Previously Closed Loans - ARI funded
$26.7 million for previously closed loans.
Loan Repayments - ARI received $60.2 million
from loan repayments, including $11.8 million from first mortgage
loans and $48.4 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. In addition, during
2018, the Company recorded a loss on early extinguishment of debt
associated with exchanges and conversions of the 2019 Notes. The
Company believes it is non-recurring and not reflective of its
ongoing operations. For further discussion on the exchanges and
conversions of the 2019 Notes, refer to "Note 9 - Convertible
Senior Notes, Net" of the Company's 10-Q. 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 and loss on early
extinguishment of debt 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 Stockholders
The table below reconciles Operating Earnings,
Operating Earnings per share of common stock, Operating Earnings
excluding realized loss on investments and loss on investments 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 nine ended
September 30, 2019 and September 30, 2018, respectively
($ amounts in thousands, except per share data):
|
|
Three months ended |
|
Earnings |
|
Three months ended |
|
Earnings |
|
|
September 30, 2019 |
|
Per Share(1) |
|
September 30, 2018 |
|
Per Share(1) |
Operating Earnings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common stockholders |
|
$ |
25,704 |
|
|
$ |
0.17 |
|
|
$ |
55,381 |
|
|
$ |
0.42 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity-based compensation expense |
|
3,889 |
|
|
0.03 |
|
|
4,048 |
|
|
0.03 |
|
Unrealized loss on interest rate swap |
|
10,307 |
|
|
0.07 |
|
|
— |
|
|
|
Gain on currency forwards |
|
(24,153 |
) |
|
(0.16 |
) |
|
(6,291 |
) |
|
(0.05 |
) |
Foreign currency loss, net(2) |
|
19,129 |
|
|
0.12 |
|
|
4,050 |
|
|
0.03 |
|
Net realized gains relating to interest income on foreign currency
hedges, net |
|
870 |
|
|
— |
|
|
421 |
|
|
0.01 |
|
Net realized gains relating to forward points on foreign currency
hedges, net |
|
1,076 |
|
|
0.01 |
|
|
257 |
|
|
— |
|
Amortization of the convertible senior notes related to equity
reclassification |
|
732 |
|
|
— |
|
|
728 |
|
|
0.01 |
|
Provision for loan losses and impairments |
|
35,000 |
|
|
0.23 |
|
|
— |
|
|
— |
|
Total adjustments: |
|
46,850 |
|
|
0.30 |
|
|
3,213 |
|
|
0.03 |
|
Operating Earnings(3) |
|
$ |
72,554 |
|
|
$ |
0.47 |
|
|
$ |
58,594 |
|
|
$ |
0.45 |
|
|
|
|
|
|
|
|
|
|
Loss on early extinguishment of debt |
|
— |
|
|
— |
|
|
2,573 |
|
|
0.02 |
|
Operating Earnings excluding loss on early extinguishment of
debt |
|
$ |
72,554 |
|
|
$ |
0.47 |
|
|
$ |
61,167 |
|
|
$ |
0.47 |
|
Basic weighted-average shares of common stock outstanding |
|
153,531,678 |
|
|
|
|
129,188,343 |
|
|
|
Weighted-average diluted shares - Operating
Earnings |
|
|
|
|
|
|
|
|
Weighted-average diluted shares - GAAP |
|
153,531,678 |
|
|
|
|
153,918,435 |
|
|
|
Weighted-average unvested RSUs |
|
1,839,631 |
|
|
|
|
1,593,070 |
|
|
|
Reversal of hypothetical conversion of the convertible senior
notes(4) |
|
— |
|
|
|
|
(24,730,092 |
) |
|
|
Weighted-average diluted shares - Operating Earnings |
|
155,371,309 |
|
|
|
|
130,781,413 |
|
|
|
(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, $0.4 million was reclassified
from Foreign currency loss, net for the three months ended
September 30, 2018.(3) For the computation of
diluted Operating Earnings per share of common stock, for the three
months ended September 30, 2018, $6.0 million of interest
expense related to the Company's notes is not deducted from the
numerator and the potentially dilutive shares related to the
Company's notes are excluded from the denominator.(4)
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 September 30, 2019 for more
information.
|
Computation of Share Count for Operating
Earnings |
Basic weighted-average shares of common stock outstanding |
153,531,678 |
|
|
|
|
129,188,343 |
|
Weighted-average unvested RSUs |
1,839,631 |
|
|
|
|
1,593,070 |
|
Weighted-average
diluted shares - Operating Earnings |
155,371,309 |
|
|
|
|
130,781,413 |
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended |
|
Earnings |
|
Nine months
ended |
|
Earnings |
|
|
September 30, 2019 |
|
Per Share(1) |
|
September 30, 2018 |
|
Per Share(1) |
Operating
Earnings: |
|
|
|
|
|
|
|
|
Net income available to common stockholders |
|
$ |
143,132 |
|
|
$ |
0.98 |
|
|
$ |
146,491 |
|
|
$ |
1.20 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Equity-based
compensation expense |
|
12,084 |
|
|
0.08 |
|
|
11,404 |
|
|
0.09 |
|
Unrealized
loss on interest rate swap |
|
23,420 |
|
|
0.16 |
|
|
— |
|
|
— |
|
Gain on
currency forwards |
|
(28,619 |
) |
|
(0.20 |
) |
|
(28,797 |
) |
|
(0.24 |
) |
Foreign
currency loss, net(2) |
|
20,012 |
|
|
0.14 |
|
|
23,574 |
|
|
0.2 |
|
Net realized
gains (losses) relating to interest income on foreign currency
hedges, net |
|
1,614 |
|
|
0.01 |
|
|
(89 |
) |
|
— |
|
Net realized
gains relating to forward points on foreign currency hedges,
net |
|
3,552 |
|
|
0.02 |
|
|
332 |
|
|
— |
|
Amortization
of the convertible senior notes related to equity
reclassification |
|
2,362 |
|
|
0.02 |
|
|
3,024 |
|
|
0.02 |
|
Provision
for loan losses and impairments, net of reversals(4) |
|
20,000 |
|
|
0.14 |
|
|
5,000 |
|
|
0.04 |
|
Total
adjustments: |
|
54,425 |
|
|
0.37 |
|
|
14,448 |
|
|
0.11 |
|
Operating
Earnings(3) |
|
$ |
197,557 |
|
|
$ |
1.35 |
|
|
$ |
160,939 |
|
|
$ |
1.31 |
|
|
|
|
|
|
|
|
|
|
Realized
loss on investments(4) |
|
12,513 |
|
|
0.08 |
|
|
— |
|
|
— |
|
Loss on
early extinguishment of debt |
|
— |
|
|
— |
|
|
2,573 |
|
|
$ |
0.02 |
|
Operating
Earnings excluding realized loss on investments and loss on early
extinguishment of debt |
|
$ |
210,070 |
|
|
$ |
1.43 |
|
|
$ |
163,512 |
|
|
$ |
1.33 |
|
Basic
weighted-average shares of common stock outstanding |
|
144,638,237 |
|
|
|
|
120,876,240 |
|
|
|
Weighted-average diluted shares - Operating
Earnings |
|
|
|
|
|
|
|
|
Weighted-average diluted shares - GAAP |
|
144,638,237 |
|
|
|
|
150,424,889 |
|
|
|
Weighted-average unvested RSUs |
|
1,845,086 |
|
|
|
|
1,617,398 |
|
|
|
Reversal of
hypothetical conversion of the convertible senior notes(5) |
|
— |
|
|
|
|
(29,548,649 |
) |
|
|
Weighted-average diluted shares - Operating Earnings |
|
146,483,323 |
|
|
|
|
122,493,638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 nine months ended September
30, 2018.(3) For the computation of diluted Operating
Earnings per share of common stock, for the nine months ended
September 30, 2018, $22.6 million of interest expense related
to the Company's notes is not deducted from the numerator and the
potentially dilutive shares related to the Company's 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
September 30, 2019 for more information.
|
|
|
|
|
|
Computation of Share
Count for Operating Earnings |
|
|
|
|
|
Basic weighted-average shares of common stock outstanding |
144,638,237 |
|
|
|
|
120,876,240 |
|
Weighted-average unvested
RSUs |
1,845,086 |
|
|
|
|
1,617,398 |
|
Weighted-average diluted
shares - Operating Earnings |
146,483,323 |
|
|
|
|
122,493,638 |
|
Teleconference Details:The
Company will host a conference call to discuss its financial
results on Thursday, October 24, 2019 at 10:00 a.m. ET. Members of
the public who are interested in participating in the Company’s
third 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 2491946). Please
note the teleconference call will be available for replay beginning
at 1:00 p.m. on Thursday, October 24, 2019 and ending at midnight
on Thursday, October 31, 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 2491946.
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, Inc., a leading global alternative
investment manager with approximately $312.0 billion of assets
under management as of June 30, 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
Subsidiaries |
Condensed Consolidated Balance Sheets (in thousands-except
share data) |
|
|
|
|
|
September 30, 2019 |
|
December 31, 2018 |
Assets: |
(Unaudited) |
|
|
|
|
Cash and cash equivalents |
$ |
160,934 |
|
|
$ |
109,806 |
|
Commercial mortgage loans, net (includes $4,118,926 and $3,197,900
pledged as collateral under secured debt arrangements in 2019 and
2018, respectively) |
4,779,501 |
|
|
3,878,981 |
|
Subordinate loans and other lending assets, net |
1,335,073 |
|
|
1,048,612 |
|
Other assets |
37,858 |
|
|
33,720 |
|
Derivative assets, net |
35,729 |
|
|
23,700 |
|
Loan proceeds held by servicer |
3,323 |
|
|
1,000 |
|
Total Assets |
$ |
6,352,418 |
|
|
$ |
5,095,819 |
|
Liabilities and Stockholders'
Equity |
|
|
|
Liabilities: |
|
|
|
Secured debt arrangements, net (net of deferred financing costs of
$18,031 and $17,555 in 2019 and 2018, respectively) |
$ |
2,541,287 |
|
|
$ |
1,879,522 |
|
Convertible senior notes, net |
560,589 |
|
|
592,000 |
|
Senior secured term loan, net (net of deferred financing costs of
$7,452 and $0 in 2019 and 2018, respectively) |
488,947 |
|
|
— |
|
Accounts payable, accrued expenses and other liabilities |
98,231 |
|
|
104,746 |
|
Derivative liabilities |
23,420 |
|
|
— |
|
Payable to related party |
10,434 |
|
|
9,804 |
|
Total Liabilities |
3,722,908 |
|
|
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,
153,531,756 and 133,853,565 shares issued and outstanding in 2019
and 2018, respectively |
1,535 |
|
|
1,339 |
|
Additional paid-in-capital |
2,821,419 |
|
|
2,638,441 |
|
Accumulated deficit |
(193,512 |
) |
|
(130,170 |
) |
Total Stockholders’
Equity |
2,629,510 |
|
|
2,509,747 |
|
Total Liabilities and
Stockholders’ Equity |
$ |
6,352,418 |
|
|
$ |
5,095,819 |
|
|
|
|
|
|
|
|
|
Apollo Commercial Real Estate Finance, Inc. and
Subsidiaries |
Condensed Consolidated Statement of Operations
(Unaudited) |
(in thousands-except share and per share
data) |
|
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
Net interest income: |
|
|
|
|
|
|
|
|
|
|
|
Interest income from commercial mortgage loans |
|
$ |
81,136 |
|
|
$ |
71,179 |
|
|
$ |
236,880 |
|
|
$ |
188,434 |
|
Interest income from subordinate loans and other lending
assets |
|
43,421 |
|
|
37,308 |
|
|
125,303 |
|
|
105,236 |
|
Interest expense |
|
(39,341 |
) |
|
(31,007 |
) |
|
(109,147 |
) |
|
(82,184 |
) |
Net interest income |
|
85,216 |
|
|
77,480 |
|
|
253,036 |
|
|
211,486 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
General and administrative expenses (includes equity-based
compensation of $3,889 and $12,084 in 2019 and $4,048 and $11,404
in 2018, respectively) |
|
(5,839 |
) |
|
(5,843 |
) |
|
(18,564 |
) |
|
(16,493 |
) |
Management fees to related party |
|
(10,434 |
) |
|
(9,515 |
) |
|
(30,306 |
) |
|
(26,620 |
) |
Total operating expenses |
|
(16,273 |
) |
|
(15,358 |
) |
|
(48,870 |
) |
|
(43,113 |
) |
Other income |
|
429 |
|
|
427 |
|
|
1,431 |
|
|
973 |
|
Provision for loan losses and impairments, net of reversals |
|
(35,000 |
) |
|
— |
|
|
(20,000 |
) |
|
(5,000 |
) |
Realized loss on investments |
|
— |
|
|
— |
|
|
(12,513 |
) |
|
— |
|
Foreign currency loss |
|
(19,129 |
) |
|
(4,050 |
) |
|
(20,012 |
) |
|
(23,574 |
) |
Loss on early extinguishment of debt |
|
— |
|
|
(2,573 |
) |
|
— |
|
|
(2,573 |
) |
Gain on foreign currency forwards (includes unrealized gains of
$16,227 and $12,029 in 2019 and $5,045 and $20,986 in 2018,
respectively) |
|
24,153 |
|
|
6,291 |
|
|
28,619 |
|
|
28,797 |
|
Unrealized loss on interest rate swap |
|
(10,307 |
) |
|
— |
|
|
(23,420 |
) |
|
— |
|
Net income |
|
$ |
29,089 |
|
|
$ |
62,217 |
|
|
$ |
158,271 |
|
|
$ |
166,996 |
|
Preferred dividends |
|
(3,385 |
) |
|
(6,836 |
) |
|
(15,139 |
) |
|
(20,505 |
) |
Net income available to common
stockholders |
|
$ |
25,704 |
|
|
$ |
55,381 |
|
|
$ |
143,132 |
|
|
$ |
146,491 |
|
Net income per share of common
stock: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.16 |
|
|
$ |
0.42 |
|
|
$ |
0.97 |
|
|
$ |
1.19 |
|
Diluted |
|
$ |
0.16 |
|
|
$ |
0.40 |
|
|
$ |
0.97 |
|
|
$ |
1.14 |
|
Basic weighted-average shares
of common stock outstanding |
|
153,531,678 |
|
|
129,188,343 |
|
|
144,638,237 |
|
|
120,876,240 |
|
Diluted weighted-average
shares of common stock outstanding |
|
153,531,678 |
|
|
153,918,435 |
|
|
144,638,237 |
|
|
150,424,889 |
|
Dividend declared per share of
common stock |
|
$ |
0.46 |
|
|
$ |
0.46 |
|
|
$ |
1.38 |
|
|
$ |
1.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTACT: |
Hilary Ginsberg |
|
(212)
822-0767 |
|
|
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