Apollo Commercial Real Estate Finance, Inc. (the “Company” or
“ARI”) (NYSE:ARI) today reported financial results for the quarter
and full year ended December 31, 2019.
Fourth Quarter 2019 Highlights
- Reported net income available to
common stockholders for the three months ended December 31,
2019 of $68.5 million, or $0.42 per diluted share of common
stock;
- Reported Operating Earnings (a
non-GAAP financial measure defined below) for the three months
ended December 31, 2019 of $70.9 million, or $0.46 per diluted
share of common stock;
- Generated $81.4 million of net
interest income during the quarter from the Company’s $6.4 billion
commercial real estate loan portfolio;
- Committed $2.2 billion to new
commercial real estate loans ($1.2 billion of which was funded at
closing) and funded an additional $143.3 million for loans closed
prior to the quarter; and
- Declared a $0.46 dividend per share
of common stock for the three months ended December 31,
2019.
2019 Highlights
- Reported net income available to
common stockholders of $211.6 million, or $1.40 per diluted share
of common stock, for the year ended December 31, 2019;
- Reported Operating Earnings of
$268.4 million, or $1.80 per diluted share of common stock, for the
year ended December 31, 2019; excluding the realized loss on
investments (described below), Operating Earnings were $280.9
million, or $1.89 per diluted share of common stock, for the year
ended December 31, 2019;
- Committed $4.2 billion to new
commercial real estate loans ($3.0 billion of which was funded
during the year ended December 31, 2019) and funded an
additional $416.1 million for loans closed prior to 2019;
- Closed a $500.0 million seven-year
senior secured term loan priced at LIBOR plus 2.75% (priced at
99.5% of par), 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, which had a
liquidation preference of $172.5 million; and
- Declared dividends per share of
common stock totaling $1.84 during the year ended December 31,
2019.
Fourth Quarter 2019 Investment
ActivityNew Investments - During the fourth quarter of
2019, ARI committed capital to the following commercial real estate
loans:
- $2.2 billion of first mortgage loans ($1.2 billion of which
were funded during the quarter)
Funding of Previously Closed Loans - During the
fourth quarter of 2019, ARI funded $143.3 million for loans closed
prior to the quarter.
Loan Repayments - During the fourth quarter of
2019, ARI received $1.2 billion from loan repayments, comprised of
$875.3 million from first mortgage loans and $318.6 million from
subordinate loans.
Year End Commercial Real Estate Loan
Portfolio SummaryThe following table sets forth certain
information regarding the Company’s commercial real estate loan
portfolio at December 31, 2019 ($ 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 |
|
$ |
5,326,967 |
|
|
5.3 |
% |
|
6.0 |
% |
|
$ |
3,095,556 |
|
|
3.3 |
% |
|
$ |
2,231,411 |
|
Subordinate loans and other
lending assets, net |
|
1,048,126 |
|
|
12.8 |
% |
|
14.1 |
% |
|
— |
|
|
— |
|
|
1,048,126 |
|
Total/Weighted-Average |
|
$ |
6,375,093 |
|
|
6.5 |
% |
|
7.4 |
% |
|
$ |
3,095,556 |
|
|
3.3 |
% |
|
$ |
3,279,537 |
|
(1) |
Weighted-Average Coupon and Weighted-Average All-in Yield are based
on the applicable benchmark rates as of December 31, 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.
Yield excludes the benefit of forward points on currency hedges
related to loans denominated in currencies other than USD. |
(3) |
Gross of deferred financing
costs of $17.2 million. |
(4) |
Represents loan portfolio at
amortized cost less secured debt outstanding. |
Book ValueThe Company’s book
value per share of common stock was $16.03 at December 31,
2019 as compared to book value per share of common stock of $16.02
at September 30, 2019.
2020 DividendThe board of
directors declared a $0.40 dividend per share of common stock,
which is payable on April 15, 2020 to common stockholders of record
on March 31, 2020. Subject to the discretion and approval of the
board of directors, the Company expects the dividend per share of
common stock for the remainder of 2020 to be $0.40 per quarter.
Commenting on the dividend, Stuart Rothstein,
Chief Executive Officer and President of ARI, said: “When setting
the dividend, ARI’s board of directors consider multiple factors,
including the level of Operating Earnings the current loan
portfolio is expected to produce, the achievable risk-adjusted
levered returns on equity (“ROEs”) ARI can generate when
reinvesting capital and the appropriate level of leverage to use in
order to achieve underwritten ROEs. While 2019 was another record
year for ARI in terms of origination volume, with over $4.2 billion
of capital committed to investments in commercial real estate
credit transactions, the expected ROE generated from ARI’s
portfolio declined. This was due to several factors, including the
repayment of older-vintage, higher yielding mezzanine loans, lower
yields on newly originated loans consistent with market conditions,
a notable shift in the forward LIBOR curve and the continued
implementation of our strategic decision to shift the composition
of ARI’s portfolio into senior loans. Consistent with this shift in
strategy, at year end 2019, 68% of ARI’s net equity was invested in
first mortgages, as compared to 32% at the end of 2015.”
Mr. Rothstein continued: “Since inception, we
have focused on delivering an attractive and stable dividend, which
is supported by high quality earnings and reflects our ongoing
approach to investment discipline, portfolio risk management and
the prudent use of leverage. We believe the new dividend level set
by the board of directors is consistent with that approach.”
Subsequent EventsThe following
events occurred subsequent to quarter end:
New Investments - Subsequent to quarter end, ARI committed
capital to the following commercial real estate loans:
- $560.9 million of first mortgage loans ($438.6 million of which
were funded during the quarter)
Funding of Previously Closed Loans - Subsequent
to quarter end, ARI funded $49.2 million for previously closed
loans.
Loan Repayments - Subsequent to quarter end, ARI
received $191.7 million from loan repayments, including $113.6
million from first mortgage loans and $81.5 million from
subordinate loans.
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 and impairments. 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. 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-K. 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 believe it is useful to the investors to also present
Operating Earnings excluding realized loss on investments and loss
on early extinguishment of debt to reflect the Company's operating
results. The Company's operating results are primarily comprised of
earning interest income on their 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 the Company's GAAP net income as a measure of its
financial performance or any measure of its liquidity under
GAAP.
Reconciliation of Operating Earnings to
Net Income Available to Common StockholdersThe table below
reconciles Operating Earnings, Operating Earnings per share of
common stock and Operating Earnings excluding realized loss on
investments and loss on early extinguishment of debt with net
income available to common stockholders and net income available to
common stockholders per share of common stock for the three months
and years ended December 31, 2019 and December 31, 2018,
respectively ($ amounts in thousands, except per share data):
|
Three months ended |
|
Earnings Per Share(1) |
|
Three months ended |
|
Earnings Per Share(1) |
|
December 31, 2019 |
|
|
December 31, 2018 |
|
Operating Earnings: |
|
|
|
|
|
|
|
Net income
available to common stockholders |
$ |
68,517 |
|
|
$ |
0.44 |
|
|
$ |
46,155 |
|
|
$ |
0.34 |
|
Adjustments: |
|
|
|
|
|
|
|
Equity-based compensation expense |
3,813 |
|
|
0.03 |
|
|
2,184 |
|
|
0.02 |
|
(Gain) loss on foreign currency forwards |
43,044 |
|
|
0.28 |
|
|
(10,261 |
) |
|
(0.08 |
) |
Unrealized gain on interest rate swap |
(8,950 |
) |
|
(0.06 |
) |
|
— |
|
|
— |
|
Foreign currency (gain) loss, net |
(39,830 |
) |
|
(0.26 |
) |
|
6,761 |
|
|
0.05 |
|
Realized gains relating to interest income on foreign currency
hedges, net(2) |
290 |
|
|
— |
|
|
535 |
|
|
— |
|
Realized gains relating to forward points on foreign currency
hedges, net |
3,237 |
|
|
0.02 |
|
|
635 |
|
|
0.01 |
|
Amortization of the convertible senior notes related to equity
reclassification |
743 |
|
|
0.01 |
|
|
934 |
|
|
0.01 |
|
Provision for loan losses and impairments |
— |
|
|
— |
|
|
15,000 |
|
|
0.11 |
|
Total adjustments: |
2,347 |
|
|
0.02 |
|
|
15,788 |
|
|
0.12 |
|
Operating Earnings |
$ |
70,864 |
|
|
$ |
0.46 |
|
|
$ |
61,943 |
|
|
$ |
0.46 |
|
Basic weighted-average shares of common stock outstanding |
153,537,074 |
|
|
|
|
133,852,915 |
|
|
|
Weighted-average diluted shares - Operating
Earnings |
|
|
|
|
|
|
|
Weighted-average diluted shares - GAAP |
182,070,345 |
|
|
|
|
163,900,633 |
|
|
|
Weighted-average unvested restricted stock units ("RSUs") |
1,809,871 |
|
|
|
|
1,598,665 |
|
|
|
Reversal of hypothetical conversion of the convertible senior
notes |
(28,533,271 |
) |
|
|
|
(30,047,718 |
) |
|
|
Weighted-average diluted shares - Operating Earnings |
155,346,945 |
|
|
|
|
135,451,580 |
|
|
|
(1) May not foot due to rounding.(2) Per share amount rounds to
zero for the three months ended December 31, 2019 and 2018.
Computation of Share Count for Operating
Earnings |
|
Basic weighted-average shares of common stock outstanding |
153,537,074 |
|
|
|
|
133,852,915 |
|
|
|
Weighted-average unvested
RSUs |
1,809,871 |
|
|
|
|
1,598,665 |
|
|
|
Weighted-average diluted
shares - Operating Earnings |
155,346,945 |
|
|
|
|
135,451,580 |
|
|
|
|
Year ended |
|
Earnings Per Share(1) |
|
Year ended |
|
Earnings Per Share(1) |
|
December 31, 2019 |
|
|
December 31, 2018 |
|
Operating Earnings: |
|
|
|
|
|
|
|
Net income
available to common stockholders |
$ |
211,649 |
|
|
$ |
1.42 |
|
|
$ |
192,646 |
|
|
$ |
1.53 |
|
Adjustments: |
|
|
|
|
|
|
|
Equity-based compensation expense |
15,897 |
|
|
0.11 |
|
|
13,588 |
|
|
0.11 |
|
Unrealized loss on interest rate swap |
14,470 |
|
|
0.10 |
|
|
— |
|
|
— |
|
(Gain) loss on foreign currency forwards |
14,425 |
|
|
0.10 |
|
|
(39,058 |
) |
|
(0.31 |
) |
Foreign currency (gain) loss, net |
(19,818 |
) |
|
(0.13 |
) |
|
30,335 |
|
|
0.24 |
|
Realized gains relating to interest income on foreign currency
hedges, net |
1,904 |
|
|
0.01 |
|
|
867 |
|
|
0.01 |
|
Realized gains relating to forward points on foreign currency
hedges, net |
6,789 |
|
|
0.05 |
|
|
1,068 |
|
|
0.01 |
|
Amortization of the convertible senior notes related to equity
reclassification |
3,105 |
|
|
0.02 |
|
|
3,958 |
|
|
0.03 |
|
Provision for loan losses and impairments, net of reversals |
20,000 |
|
|
0.13 |
|
|
20,000 |
|
|
0.16 |
|
Total adjustments: |
56,772 |
|
|
0.39 |
|
|
30,758 |
|
|
0.25 |
|
Operating Earnings |
$ |
268,421 |
|
|
$ |
1.80 |
|
|
$ |
223,404 |
|
|
$ |
1.78 |
|
|
|
|
|
|
|
|
|
Realized loss on investments |
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 |
$ |
280,934 |
|
|
$ |
1.89 |
|
|
$ |
225,976 |
|
|
$ |
1.80 |
|
Basic weighted-average shares of common stock outstanding |
146,881,231 |
|
|
|
|
124,147,073 |
|
|
|
Weighted-average diluted shares - Operating
Earnings |
|
|
|
|
|
|
|
Weighted-average diluted shares - GAAP |
175,794,896 |
|
|
|
|
153,821,515 |
|
|
|
Weighted-average unvested RSUs |
1,836,210 |
|
|
|
|
1,612,676 |
|
|
|
Reversal of hypothetical conversion of the convertible senior
notes |
(28,913,665 |
) |
|
|
|
(29,674,442 |
) |
|
|
Weighted-average diluted shares - Operating Earnings |
148,717,441 |
|
|
|
|
125,759,749 |
|
|
|
(1) May not foot due to rounding.
Computation of Share Count for Operating
Earnings |
|
Basic weighted-average shares of common stock outstanding |
146,881,231 |
|
|
|
|
124,147,073 |
|
|
|
Weighted-average unvested
RSUs |
1,836,210 |
|
|
|
|
1,612,676 |
|
|
|
Weighted-average
diluted shares - Operating Earnings |
148,717,441 |
|
|
|
|
125,759,749 |
|
|
|
Teleconference Details:The
Company will host a conference call to discuss its financial
results on Friday, February 14, 2020 at 10:00 a.m. ET. Members of
the public who are interested in participating in the Company’s
fourth quarter and full year 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 3794703). Please note the teleconference call will be
available for replay beginning at 1:00 p.m. on Friday, February 14,
2020 and ending at midnight on Friday, February 21, 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 3794703.
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
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 $331.1 billion of assets under management as of
December 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 SubsidiariesConsolidated Balance Sheets
(in thousands-except share data)
|
December 31, 2019 |
|
December 31, 2018 |
Assets: |
|
|
|
Cash and cash equivalents |
$ |
452,282 |
|
|
$ |
109,806 |
|
Commercial mortgage loans, net (includes $4,852,087 and $3,197,900
pledged as collateral under secured debt arrangements in 2019 and
2018, respectively) |
5,326,967 |
|
|
3,878,981 |
|
Subordinate loans and other lending assets, net |
1,048,126 |
|
|
1,048,612 |
|
Other assets |
52,716 |
|
|
33,720 |
|
Loan proceeds held by servicer |
8,272 |
|
|
1,000 |
|
Derivative assets, net |
— |
|
|
23,700 |
|
Total Assets |
$ |
6,888,363 |
|
|
$ |
5,095,819 |
|
Liabilities and Stockholders'
Equity |
|
|
|
Liabilities: |
|
|
|
Secured debt arrangements, net (net of deferred financing costs of
$17,190 and $17,555 in 2019 and 2018, respectively) |
$ |
3,078,366 |
|
|
$ |
1,879,522 |
|
Convertible senior notes, net |
561,573 |
|
|
592,000 |
|
Senior secured term loan, net (net of deferred financing costs of
$7,277 and $0 in 2019 and 2018, respectively) |
487,961 |
|
|
— |
|
Accounts payable, accrued expenses and other liabilities |
100,712 |
|
|
104,746 |
|
Derivative liabilities, net |
19,346 |
|
|
— |
|
Payable to related party |
10,430 |
|
|
9,804 |
|
Total Liabilities |
$ |
4,255,458 |
|
|
$ |
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 shares 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,
153,537,296 and 133,853,565 shares issued and outstanding in 2019
and 2018, respectively |
1,535 |
|
|
1,339 |
|
Additional paid-in-capital |
2,825,317 |
|
|
2,638,441 |
|
Accumulated deficit |
(196,945 |
) |
|
(130,170 |
) |
Total Stockholders’
Equity |
2,629,975 |
|
|
2,509,747 |
|
Total Liabilities and
Stockholders’ Equity |
$ |
6,888,363 |
|
|
$ |
5,095,819 |
|
Apollo Commercial Real Estate Finance,
Inc. and SubsidiariesConsolidated Statements of
Operations(in thousands-except share and per share
data)
|
Three months ended
December 31, |
|
Year ended December
31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Net interest income: |
|
|
|
|
|
|
|
Interest income from commercial mortgage loans |
$ |
85,595 |
|
|
$ |
75,275 |
|
|
$ |
322,475 |
|
|
$ |
263,709 |
|
Interest income from subordinate loans and other lending assets,
net |
39,630 |
|
|
34,944 |
|
|
164,933 |
|
|
140,180 |
|
Interest expense |
(43,779 |
) |
|
(32,413 |
) |
|
(152,926 |
) |
|
(114,597 |
) |
Net interest income |
81,446 |
|
|
77,806 |
|
|
334,482 |
|
|
289,292 |
|
Operating expenses: |
|
|
|
|
|
|
|
General and administrative expenses (includes equity-based
compensation of $3,813 and $15,897 in 2019 and $2,184 and $13,588
in 2018) |
(5,533 |
) |
|
(3,977 |
) |
|
(24,097 |
) |
|
(20,470 |
) |
Management fees to related party |
(10,428 |
) |
|
(9,804 |
) |
|
(40,734 |
) |
|
(36,424 |
) |
Total operating expenses |
(15,961 |
) |
|
(13,781 |
) |
|
(64,831 |
) |
|
(56,894 |
) |
Other income |
682 |
|
|
465 |
|
|
2,113 |
|
|
1,438 |
|
Provision for loan losses and impairments, net of reversals |
— |
|
|
(15,000 |
) |
|
(20,000 |
) |
|
(20,000 |
) |
Realized loss on investments |
— |
|
|
— |
|
|
(12,513 |
) |
|
— |
|
Foreign currency gain (loss) |
39,830 |
|
|
(6,761 |
) |
|
19,818 |
|
|
(30,335 |
) |
Loss on early extinguishment of debt |
— |
|
|
— |
|
|
— |
|
|
(2,573 |
) |
Gain (loss) on foreign currency forwards (includes unrealized gains
(losses) of $(40,605) and $(28,576) in 2019 and $8,359 and $29,345
in 2018) |
(43,044 |
) |
|
10,261 |
|
|
(14,425 |
) |
|
39,058 |
|
Gain (loss) on interest rate swap |
8,950 |
|
|
— |
|
|
(14,470 |
) |
|
— |
|
Net income |
$ |
71,903 |
|
|
$ |
52,990 |
|
|
$ |
230,174 |
|
|
$ |
219,986 |
|
Preferred dividends |
(3,386 |
) |
|
(6,835 |
) |
|
(18,525 |
) |
|
(27,340 |
) |
Net income available to common stockholders |
$ |
68,517 |
|
|
$ |
46,155 |
|
|
$ |
211,649 |
|
|
$ |
192,646 |
|
Net income per share of common
stock: |
|
|
|
|
|
|
|
Basic |
$ |
0.44 |
|
|
$ |
0.34 |
|
|
$ |
1.41 |
|
|
$ |
1.52 |
|
Diluted |
$ |
0.42 |
|
|
$ |
0.34 |
|
|
$ |
1.40 |
|
|
$ |
1.48 |
|
Basic weighted-average shares of common stock outstanding |
153,537,074 |
|
|
133,852,915 |
|
|
146,881,231 |
|
|
124,147,073 |
|
Diluted weighted-average shares of common stock
outstanding |
182,070,345 |
|
|
163,900,633 |
|
|
175,794,896 |
|
— |
|
153,821,515 |
|
CONTACT: Hilary
Ginsberg(212) 822-0767
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