Apollo Commercial Real Estate Finance, Inc. (the “Company” or
“ARI”) (NYSE:ARI), today reported results for the quarter ended
March 31, 2020.
First quarter 2020 net loss per share of common
stock was $0.86 and Operating Earnings (a non-GAAP financial
measure defined below) per share of common stock was
$0.40.
“I am extremely proud of the hard work,
perseverance and dedication of the team at our Manager, ACREFI
Management, LLC, an indirect subsidiary of Apollo Global
Management, Inc. (together with its subsidiaries “Apollo”), that
supports ARI, as we navigate and manage through the COVID-19
pandemic,” said Stuart Rothstein, Chief Executive Officer and
President of the Company. “ARI ended the quarter with over $590
million of liquidity and continues to benefit from the tremendous
breadth and resources it derives from the Apollo platform.”
ARI issued a detailed presentation of the
Company’s quarter ended March 31, 2020 results, which can be viewed
at www.apolloreit.com.
Conference Call and
Webcast:Members of the public who are interested in
participating in the Company’s first quarter 2020 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. on
Friday, May 8, 2020 and reference the Apollo Commercial Real Estate
Finance, Inc. Teleconference Call (number 3839797). Please note the
teleconference call will be available for replay beginning at 1:00
p.m. on Friday, May 8, 2020 and ending at midnight on Friday, May
15, 2020. 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 3839797. 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.
Operating EarningsOperating
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 (the "Notes") to
stockholders’ equity in accordance with GAAP, and (vi) provision
for loan losses. Beginning with the quarter ended December 31,
2018, the Company 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 its 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 may not be included in
GAAP net income in the same period as this adjustment. Generally
these amounts would be included in prior period GAAP net income as
unrealized gains on forward currency contracts.
The weighted-average diluted shares outstanding
used for Operating Earnings per weighted-average diluted share has
been adjusted from weighted-average diluted shares under GAAP to
exclude shares issued from a potential conversion of the Notes.
Consistent with the treatment of other unrealized adjustments to
Operating Earnings, these potentially issuable shares are excluded
until a conversion occurs, which the Company believes is a useful
presentation for investors. The Company believes that excluding
shares issued in connection with a potential conversion of the
Notes from the Company's computation of Operating Earnings per
weighted-average diluted share is useful to investors for various
reasons, including the following: (i) conversion of the Notes to
shares requires both the holder of a Note to elect to convert the
Note and for the Company to elect to settle the conversion in the
form of shares (ii) future conversion decisions by Note holders
will be based on the Company's stock price in the future, which is
presently not determinable; (iii) the exclusion of shares issued in
connection with a potential conversion of the Notes from the
computation of Operating Earnings per weighted-average diluted
share is consistent with how the Company treats other unrealized
items in the computation of Operating Earnings per weighted-average
diluted share; and (iv) the Company believes that when evaluating
its operating performance, investors and potential investors
consider the Operating Earnings relative to the actual
distributions, which are based on shares outstanding and not shares
that might be issued in the future.
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.
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 the Company's GAAP net income as a measure of its
financial performance or any measure of its liquidity under
GAAP.
A reconciliation of Operating Earnings to GAAP
net income (loss) available to common stockholders is included in
the detailed presentation of the Company's quarter ended March 31,
2020 results, which can be viewed 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
first 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 $315.5 billion of assets under management at
March 31, 2020.
Additional information can be found on the
Company's website at www.apolloreit.com.
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: macro- and micro-economic impact of the COVID-19
pandemic; the severity and duration of the COVID-19 pandemic;
actions taken by governmental authorities to contain the COVID-19
pandemic or treat its impact; the impact of the COVID-19 pandemic
on our financial condition, results of operations, liquidity and
capital resources; market trends in our industry, interest rates,
real estate values, the debt securities markets or the general
economy; the timing and amounts of expected future fundings of
unfunded commitments; 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.
CONTACT: |
Hilary GinsbergInvestor
Relations(212) 822-0767 |
Apollo Commercial Real E... (NYSE:ARI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Apollo Commercial Real E... (NYSE:ARI)
Historical Stock Chart
From Apr 2023 to Apr 2024