NEW YORK--(BUSINESS WIRE)--Jan. 4, 2018--
Apollo Commercial Real Estate Finance, Inc. (the “Company” or “ARI”)
(NYSE:ARI) today announced that with the completion of the Company’s
investment activity in December, ARI committed to over $2.0 billion of
new investments in 2017, a record year for the Company.
“ARI achieved several major milestones in 2017, investing in over $2.0
billion of commercial real estate loans across a broad spectrum of
property types and geographies,” said Stuart Rothstein, Chief Executive
Officer and President of ARI. “As a result, ARI ended the year with a
predominately floating-rate loan portfolio totaling approximately $3.7
billion. The Company continues to expand its market presence and we
believe ARI’s reputation as a creative, reliable capital source enabled
the Company to have a record year of loan originations in 2017. In
addition, through active capital management throughout the year, we
strengthened ARI’s balance sheet and diversified its sources of capital,
which will enable the Company to fund its robust investment pipeline in
Fourth Quarter Portfolio Activity
New Investments – During the fourth
quarter of 2017, ARI committed capital to the following commercial real
estate debt investments:
$857.4 million of first mortgage loans ($624.6 million of which were
funded during the quarter); and
$272.4 million of subordinate loans ($132.1 million of which were
funded during the quarter).
Funding of Previously Closed Loans –
During the fourth quarter of 2017, ARI funded $14.2 million for loans
closed prior to the quarter.
Loan Repayments – During the fourth
quarter of 2017, ARI received $653.2 million from loan repayments,
including $200.9 million from first mortgage loans and $452.3 million
from subordinate loans. In connection with these loan repayments, the
Company recorded interest income of approximately $3.0 million related
to a prepayment penalty and acceleration of fees from four subordinate
Sale of CMBS – During the
fourth quarter, ARI received approximately $179.4 million in proceeds
from the sale of the Company’s remaining CMBS bonds and recorded a $37.6
million ($0.35 per share of common stock) realized loss on the sale,
which includes the previously disclosed $7.4 million realized loss
recorded earlier in the fourth quarter of 2017 in connection with a
prior sale of CMBS bonds. Upon the sale of the final CMBS bonds, ARI
terminated the financing facility associated with the CMBS bonds and
recorded a loss on early extinguishment of debt of $1.9 million ($0.02
per share of common stock).
Commenting on the sale of the CMBS, Mr. Rothstein stated: “Consistent
with the previously disclosed strategy of reducing the Company’s
exposure to CMBS and focusing ARI’s investment portfolio on commercial
real estate loans, ARI sold the Company’s remaining CMBS bonds during
the fourth quarter. As a result, ARI recorded a realized loss on the
sale, which will be reflected in both the Company’s net income and
Operating Earnings for the quarter ended December 31, 2017. The loss did
not impact the Board of Directors decision to declare the $0.46 dividend
per share of common stock for the fourth quarter, which will be paid on
January 16, 2018 to ARI’s common stockholders of record on December 29,
2017. In addition, given the prices received on the CMBS sales
throughout 2017 relative to the marks prior to sale, the sales had a
minimal impact on ARI’s book value per share.”
2017 Investment Summary
ARI committed to over $2.0 billion of new commercial real estate loan
transactions in 2017, including:
$1.4 billion of first mortgage loans ($1.1 billion of which were
funded at closing); the first mortgage loans were secured by a mixture
of property types including office, mixed-use, condominium
development, hospitality and multifamily in a variety of locations,
including Atlanta, Brooklyn, Chicago, London, Manhattan and Miami; and
$642.9 million of subordinate loans ($497.6 million of which were
funded at closing); the subordinate loans were secured by a mixture of
property types including condominium development, hospitality and
mixed-use in a variety of locations including Cleveland, London, Los
Angeles and Manhattan.
Funding of Previously Closed Loans –
During 2017, ARI funded $193.1 million for loans closed prior to 2017.
About Apollo Commercial Real Estate Finance, Inc.
Apollo Commercial Real Estate Finance, Inc. (NYSE: ARI) is a real estate
investment trust that primarily originates, invests in, acquires and
manages performing commercial real estate 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, LLC, a leading global
alternative investment manager with approximately $242 billion of assets
under management as of September 30, 2017.
Additional information can be found on the Company's website at www.apolloreit.com.
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 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. 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.
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Source: Apollo Commercial Real Estate Finance, Inc.
for Apollo Commercial Real Estate Finance, Inc.
Ginsberg, Investor Relations, (212) 822-0767