Apollo Commercial Real Estate Finance (NYSE:ARI) Announces Quarterly Earnings Results

Key Points

• EPS surprise: ARI reported quarterly EPS of $999.00, beating the consensus of $0.29 by $998.71.
• High dividend yield: The firm paid a $0.25 quarterly dividend (annualized $1.00) for a 9.0% yield, though the dividend payout ratio is 125%.
• Neutral analyst view and modest valuation: Shares traded near $11.06 (market cap ~$1.54B) with a consensus "Hold" rating and an average price target of $11.00.

Apollo Commercial Real Estate Finance (NYSE:ARI - Get Free Report) posted its quarterly earnings results on Tuesday. The real estate investment trust reported $999.00 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.29 by $998.71, reports. Apollo Commercial Real Estate Finance had a net margin of 46.66% and a return on equity of 7.94%.

Apollo Commercial Real Estate Finance Price Performance

Shares of NYSE:ARI traded down $0.04 during midday trading on Tuesday, reaching $11.06. 1,233,432 shares of the company's stock were exchanged, compared to its average volume of 1,402,807. The company's 50 day simple moving average is $10.67 and its two-hundred day simple moving average is $10.30. The firm has a market capitalization of $1.54 billion, a PE ratio of 13.82 and a beta of 1.46. Apollo Commercial Real Estate Finance has a 12 month low of $9.22 and a 12 month high of $11.24. The company has a debt-to-equity ratio of 0.66, a quick ratio of 96.78 and a current ratio of 96.78.

Apollo Commercial Real Estate Finance Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st were issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 9.0%. The ex-dividend date of this dividend was Tuesday, March 31st. Apollo Commercial Real Estate Finance's dividend payout ratio (DPR) is presently 125.00%.

Wall Street Analyst Weigh In

Several analysts have issued reports on ARI shares. Keefe, Bruyette & Woods raised their price target on shares of Apollo Commercial Real Estate Finance from $10.75 to $11.50 and gave the stock an "outperform" rating in a research report on Thursday, February 12th. Zacks Research upgraded shares of Apollo Commercial Real Estate Finance from a "strong sell" rating to a "hold" rating in a research report on Monday, April 20th. Weiss Ratings restated a "hold (c-)" rating on shares of Apollo Commercial Real Estate Finance in a research report on Monday, December 29th. Finally, Wall Street Zen downgraded shares of Apollo Commercial Real Estate Finance from a "buy" rating to a "hold" rating in a report on Saturday, January 3rd. Two analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $11.00.

Hedge Funds Weigh In On Apollo Commercial Real Estate Finance

Institutional investors have recently added to or reduced their stakes in the company. VARCOV Co. bought a new position in Apollo Commercial Real Estate Finance during the 4th quarter valued at about $471,000. State of Wyoming lifted its holdings in Apollo Commercial Real Estate Finance by 56.3% during the 2nd quarter. State of Wyoming now owns 40,972 shares of the real estate investment trust's stock valued at $397,000 after purchasing an additional 14,757 shares during the last quarter. Weiss Asset Management LP bought a new position in Apollo Commercial Real Estate Finance during the 4th quarter valued at about $360,000. BNP Paribas Financial Markets lifted its holdings in Apollo Commercial Real Estate Finance by 138.0% during the 3rd quarter. BNP Paribas Financial Markets now owns 34,380 shares of the real estate investment trust's stock valued at $348,000 after purchasing an additional 19,932 shares during the last quarter. Finally, Cerity Partners LLC lifted its holdings in Apollo Commercial Real Estate Finance by 15.0% during the 4th quarter. Cerity Partners LLC now owns 26,010 shares of the real estate investment trust's stock valued at $252,000 after purchasing an additional 3,389 shares during the last quarter. 54.43% of the stock is owned by institutional investors.

Apollo Commercial Real Estate Finance Company Profile

Apollo Commercial Real Estate Finance, Inc NYSE: ARI is a real estate finance company structured as a real estate investment trust (REIT). The company focuses on originating, acquiring and managing a diversified portfolio of commercial real estate debt and preferred equity investments. As an externally managed vehicle, ARI leverages the expertise and resources of an affiliate of Apollo Global Management, a leading global alternative investment manager.

ARI's investment strategy is centered on providing first mortgage loans, mezzanine debt financing, bridge loans and preferred equity across a broad range of property types, including office, retail, industrial and multifamily assets.

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