GAAP Book Value per Share Increases to $18.49; Board Declares $0.35 Dividend
NEW YORK, NY, May 12, 2010 (MARKETWIRE via COMTEX) --Apollo Commercial Real Estate Finance, Inc. (the "Company") (NYSE:
ARI), reported Operating Earnings (as defined below) of $3,003, or
$0.28 per share, for the three months ended March 31, 2010. Net
income available to common stockholders for the same period was
$1,742, or $0.16 per share. (All currency amounts discussed herein
are in thousands, except share and per share amounts. All per share
information is presented on a diluted basis.)
Operating Earnings is a non-GAAP financial measure that is used to
approximate cash available for distribution and is defined by the
Company as net income, computed in accordance with accounting
principles generally accepted in the United States of America
("GAAP"), adjusted for (i) non-cash equity compensation expense, (ii)
depreciation and amortization and (iii) any unrealized gains or
losses or other non-cash items included in net income.
Stuart Rothstein, Chief Financial Officer of the Company, commented,
"In having deployed approximately 96% of our capital as of March 31,
2010, we have accumulated a portfolio that we believe supports the
current annualized dividend yield of approximately 7.9%."
First Quarter 2010 Investments
During the first quarter of 2010, the
Company originated three first mortgage loans totaling $86,000 and
purchased additional AAA-rated legacy CMBS with a face amount of
$223,014. CMBS with a face amount of $210,908 were financed through
the Term Asset-Backed Securities Loan Facility (the "TALF") program,
resulting in $178,470 of TALF financing. One CMBS with a face amount
of $12,106 and an amortized cost of $12,221 was not accepted for the
TALF financing and was sold during February 2010, resulting in a
realized loss of $33.
Quarter End Portfolio Summary
The following table sets forth certain
information regarding the Company's investments and the expected
returns at March 31, 2010:
Current
Return Weighted
on Face Amortized Average
Asset type Equity Invested Equity Amount Cost Yield
---------------------- --------------- ------- ------- ---------- --------
Commercial first
mortgage loans $86,000 8.4% $86,000 $86,000 8.4%
CMBS 66,784 18.5% 361,876 370,897 4.5%
Mezzanine loans 50,000 12.9% 50,000 50,000 12.9%
The Company's CMBS portfolio detailed above is financed with sixteen
loans provided through the Term Asset-Backed Securities Loan Facility
(the "TALF") program aggregating $306,449 of borrowings with a
weighted average fixed interest rate of 2.8%.
Book Value
The Company's GAAP book value per share at March 31, 2010
was $18.49. Included in GAAP book value per share at March 31, 2010
is an accrual for a $10,000 deferred underwriting fee. The Company
did not make any payments related to underwriting fees at the time of
its initial public offering ("IPO"). Instead, ACREFI Management, LLC,
its external manager, agreed to pay 80% of such fees and the IPO
underwriters agreed to defer the remaining 20%. The Company has
agreed to reimburse ACREFI Management, LLC for the underwriting fees
it paid, and to pay the remaining 20% of the deferred fees (a total
of $10,000) if, during any period of four consecutive calendar
quarters during the 16 full calendar quarters after the IPO, the
Company's Core Earnings (as defined in the underwriting agreement)
for any such four-quarter period exceeds an 8% performance hurdle
rate.
The book value per share of the Company, prior to the accrual of the
deferred underwriting fee, was $19.43 at March 31, 2010.
Dividend
On May 12, 2010, the Company announced that its Board of Directors
declared a dividend of $0.35 per share of common stock which will be
paid on July 12, 2010 to common stockholders of record on June 30,
2010.
Teleconference Details:
The Company will be hosting a conference
call to discuss its financial results on Thursday, May 13, 2010 at
8:30 a.m. Eastern Daylight Time. Members of the public who are
interested in participating in the Company's first quarter earnings
teleconference should dial, from the U.S., (877) 263-2989, or from
outside the U.S., (702) 928-7168, shortly before 8:30 a.m. and
reference the Apollo Commercial Real Estate Finance, Inc.
Teleconference Call (number 68581202). Please note that the
teleconference call will be available for replay beginning at 9:30
a.m. on Thursday, May 13, 2010, and ending at midnight on Thursday,
May 20, 2010. To access the replay, callers from the U.S. should dial
(800) 642-1687 and callers from outside the U.S. should dial (706)
645-9291 and enter conference identification number
68581202.
Webcast:
The conference call will also be available on the
Company's website at www.apolloreit.com. To listen to a live
broadcast, 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.
About Apollo Commercial Real Estate Finance, Inc.
Apollo Commercial
Real Estate Finance, Inc. is a commercial real estate finance company
that originates, acquires, invests in and manages senior performing
commercial first mortgage loans, CMBS, mezzanine loans and B-Notes
and other commercial real estate-related debt investments in the U.S.
The Company is externally managed and advised by ACREFI Management,
LLC, a Delaware limited liability company, an indirect subsidiary of
Apollo Global Management, LLC. Additional information can be found on
the Company's website at www.apolloreit.com.
Forward-Looking Statements
Certain 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 our investments; the ability to borrow to finance
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, including the Company's Annual Report on Form 10-K for
the year ended December 31, 2009. 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.
Apollo Commercial Real Estate Finance, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands - except share and per share data)
----------------------------------------------------------------------------
March 31, 2010 December 31, 2009
------------------------------------
Assets:
Cash and cash equivalents $5,538 $129,969
Contractual deposits - 90
Securities available-for-sale, at
estimated fair value 373,233 153,614
Commercial mortgage loans 86,000 -
Mezzanine loans 50,000 50,000
Interest receivable 3,110 1,210
Other assets 2,698 254
------------------------------------
Total Assets $520,579 $335,137
====================================
Liabilities and Stockholders' Equity
Liabilities:
TALF borrowings $306,449 $128,106
Accounts payable and accrued expenses 2,150 349
Payable to related party 1,141 1,385
Distributions payable 3,766 -
Deferred underwriting fee ($8,000 of
which is payable to the Manager) 10,000 10,000
------------------------------------
Total Liabilities 323,506 139,840
Commitments and Contingencies - -
Stockholders' Equity:
Common stock, $0.01 par value,
450,000,000 shares authorized,
10,660,416 and 10,762,500 shares
issued and outstanding in 2010 and
2009, respectively 107 107
Additional paid-in-capital 198,826 198,436
Accumulated deficit (4,196) (2,172)
Accumulated other comprehensive income
(loss) 2,336 (1,074)
------------------------------------
Total Stockholders' Equity 197,073 195,297
------------------------------------
Total Liabilities and Stockholders'
Equity $520,579 $335,137
====================================
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
March 31, 2010
-----------------------
Net interest margin:
Interest income from securities $3,174
Interest income from commercial mortgage loans 798
Interest income from mezzanine loans 1,639
Interest expense (1,709)
-----------------------
Net interest margin 3,902
Operating expenses:
General and administrative expenses 1,017
Stock-based compensation expense 390
Management fees to related party 726
-----------------------
Total operating expenses 2,133
-----------------------
Interest income from cash balances 6
-----------------------
Realized loss (33)
=======================
Net income $1,742
=======================
Basic net income per share of common stock $0.16
=======================
Diluted net income per share of common stock $0.16
=======================
Basic weighted average common shares outstanding 10,762,500
Diluted weighted average common shares outstanding 10,762,500
Dividend declared per share of common stock $0.35
Apollo Commercial Real Estate Finance, Inc. and Subsidiaries
Operating Earnings (Unaudited)
(in thousands - except share and per share data)
Operating Earnings is a non-GAAP financial measure that is used to
approximate cash available for distribution and is defined by the
Company as net income, computed in accordance with GAAP, adjusted for
(i) non-cash stock-based compensation expense, (ii) depreciation and
amortization and (iii) any unrealized gains or losses or other
non-cash items included in net income.
-----------------------------------------------------------------
-----------
Three months ended
March 31, 2010
-------------------
Operating earnings:
Net income $1,742
Adjustments:
Non-cash stock-based compensation expense 390
Premium amortization 662
Deferred financing cost amortization 209
-------------------
Total adjustments: 1,261
-------------------
Operating earnings $3,003
===================
Operating earnings per share of common stock - basic $0.28
===================
Operating earnings per share of common stock - diluted $0.28
===================
Basic weighted average common shares outstanding 10,762,500
Diluted weighted average common shares outstanding 10,762,500
SOURCE: Apollo Commercial Real Estate Finance, Inc.
