The commercial real estate market is in the midst of extreme pressure and companies exposed to it are taking blows. You can glean strong income from this sector if you are careful and diligent. Management makes all the difference.
Apollo Commercial Real Estate Finance maintained a $0.35 per share dividend, but had no margin of safety left for the dividend. The portfolio saw an increase in originations but suffered higher credit provisions in 2Q24. Stocks are selling at a 29% discount to book value, but dividends remain risky due to a lack of margin of safety.
Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI ) Q2 2024 Earnings Conference Call August 7, 2024 10:00 AM ET Company Participants Stuart Rothstein - Chief Executive Officer Scott Weiner - Chief Investment Officer Anastasia Mironova - Chief Financial Officer Conference Call Participants Douglas Harter - UBS Rick Shane - JPMorgan Stephen Laws - Raymond James Steven Delaney - Citizens JMP Group, LLC Jade Rahmani - KBW Eric Dray - at Bank of America Merrill Lynch Operator 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.
The headline numbers for Apollo Commerical Finance (ARI) give insight into how the company performed in the quarter ended June 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Apollo Commerical Finance (ARI) came out with quarterly earnings of $0.35 per share, beating the Zacks Consensus Estimate of $0.34 per share. This compares to loss of $0.11 per share a year ago.
Apollo Commercial Real Estate Finance, Inc. has a very high yield of 13%. We compare this one to Blackstone Mortgage, Ares Commercial and BrightSpire Capital. The riskiest one does stand out.
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