Q3 2024 Apollo Commercial Real Estate Finance Inc Earnings Call Transcript
Key Points
- Apollo Commercial Real Estate Finance Inc (ARI) has committed over $1.1 billion to new vintage loans in the past nine months, indicating strong investment activity.
- The company received $1.7 billion in loan repayments year-to-date, showcasing effective capital recovery.
- ARI's portfolio at quarter-end was comprised of 45 loans totaling $7.8 billion, reflecting a robust loan portfolio.
- The company reported distributable earnings of $44 million or $0.31 per share, demonstrating solid financial performance.
- ARI successfully leased the retail component at 111 West 57th Street to Bonhams, enhancing the property's value and future revenue potential.
- ARI reported a GAAP net loss of $95 million or negative $0.69 per diluted share, primarily due to a $128 million realized loss from a loan resolution.
- The Massachusetts hospital loan remains a challenge, with two hospitals closed and ongoing legal proceedings regarding eminent domain.
- Interest expense increased to $134 million from $128.5 million last quarter, despite stable debt balances, impacting profitability.
- A EUR200 million loan secured by German office assets was downgraded to a risk rating of 4, indicating potential credit risk.
- The company's debt-to-equity ratio is 3.5 times, which may limit financial flexibility and increase risk exposure.
I'd like to remind everyone that today's call and webcast are being recorded. Please note that they are the property of Apollo Commercial Real Estate Finance, Inc. and that any unauthorized broadcast in any form is strictly prohibited. Information about the audio replay of this call is available in our earnings press release. I'd also like to call your attention to the customary safe harbor disclosure in our press release regarding forward-looking statements.
Today's conference call and webcast may include forward-looking statements and projections, and we ask that you refer to our most recent filings with the SEC for important factors that could cause actual results to differ materially from these statements and projections. In addition, we will be discussing certain non-GAAP measures on this call, which management believes are relevant to assessing the company's financial performance.
These measures are reconciled to GAAP figures in our earnings presentation, which is available in the Stockholders section of our website. We do not undertake any obligation to update our forward-looking
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