Apollo Commercial Real Estate Finance, Inc. Announces 2022 Dividend Income Tax Treatment

Rhea-AI Summary

Apollo Commercial Real Estate Finance, Inc. (ARI) announced the estimated federal income tax treatment of its 2022 distributions on common stock and its 7.25% Series B-1 Preferred Stock. Total distributions for common stock were $0.35 per share quarterly, with varying ordinary income portions. For 2022, the ordinary income per share was $0.2445, $0.3500, and $0.1185 for certain distributions. Preferred Stock distributions were $0.453125 per share. Notably, a portion of the January 2023 cash distribution will retroactively count as a 2022 distribution. Shareholders are advised to consult with tax advisors regarding their individual tax implications.

Positive

• Consistent dividend payments of $0.35 per share quarterly enhance shareholder income.
• Potential eligibility for a 20% deduction under IRC Section 199A for certain distributions.

Negative

• No significant negative aspects reported.

NEW YORK, Jan. 24, 2023 (GLOBE NEWSWIRE) -- Apollo Commercial Real Estate Finance, Inc. (the “Company” or “ARI”) (NYSE:ARI) today announced the estimated federal income tax treatment of the Company’s 2022 distributions on its common stock (CUSIP #03762U105) and its 7.25% Series B-1 Cumulative Redeemable Perpetual Preferred Stock.

The federal income tax classification of the 2022 distributions on the Company’s common stock as it is expected to be reported on Form 1099-DIV is set forth in the following table:

Record Date	Payable Date	Total Distribution Per Share			Ordinary Income Per Share (2)		Return of Capital Per Share	Capital Gain Per Share
12/31/2021	01/14/2022	$0.35			$0.2445		-	-
03/31/2022	04/15/2022	$0.35			$0.3500		-	-
06/30/2022	07/15/2022	$0.35			$0.3500		-	-
09/30/2022	10/14/2022	$0.35			$0.3500		-	-
12/30/2022(1)	01/13/2023	$0.35			$0.1185		-	-

⁽¹⁾ Pursuant to Section 857(b)(9) of the Internal Revenue Code of 1986, as amended (the “IRC”), cash distributions made on January 13, 2023 to stockholders of record as of December 31, 2022, are treated, to the extent of the Company’s 2022 tax earnings and profits, as received by stockholders on December 31, 2022. Since the Company’s aggregate cash distributions did not exceed its 2022 tax earnings and profits, a portion of the January 2023 cash distribution declared in the fourth quarter of 2022 will be treated as a 2022 distribution for federal income tax purposes and is included on the 2022 Form 1099-DIV.

⁽²⁾ May be eligible for a 20% deduction under IRC Section 199A. Stockholders are encouraged to consult with their own tax advisors as to their specific tax treatment of the Company's distributions.

The federal income tax classification of the 2022 distributions on the Company’s 7.25% Series B-1 Cumulative Redeemable Perpetual Preferred stock as it is expected to be reported on Form 1099-DIV is set forth in the following table:

Record Date	Payable Date	Total Distribution Per Share			Ordinary Income Per Share		Return of Capital Per Share	Capital Gain Per Share
03/31/2022	4/15/2022	$0.453125			$0.453125		-	-
06/30/2022	7/15/2022	$0.453125			$0.453125		-	-
09/30/2022	10/14/2022	$0.453125			$0.453125		-	-
12/30/2022	01/13/2023	$0.453125			$0.453125		-	-

Stockholders are encouraged to consult with their own tax advisors as to their specific tax treatment of the Company's distributions.

About Apollo Commercial Real Estate Finance, Inc.
Apollo Commercial Real Estate Finance, Inc. (NYSE: ARI) is a real estate investment trust that primarily originates, acquires, invests in and manages performing commercial 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, Inc., a high-growth, global alternative asset manager with approximately $523 billion of assets under management as of September 30, 2022.

Additional information can be found on the Company's website at www.apollocref.com. Please note that our URL address has changed.

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: macro- and micro-economic impact of the COVID-19 pandemic; the severity and duration of the COVID-19 pandemic; actions taken by governmental authorities to contain the COVID-19 pandemic or treat its impact; the impact of the COVID-19 pandemic on the Company’s financial condition, results of operations, liquidity and capital resources; market trends in the Company’s industry, interest rates, real estate values, the debt securities markets or the general economy; the timing and amounts of expected future fundings of unfunded commitments; the return on equity; the yield on investments; the ability to borrow to finance assets; the Company’s ability to deploy the proceeds of its capital raises or acquire its target 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.

CONTACT:	Hilary Ginsberg
	Investor Relations
	(212) 822-0767

FAQ

What is the federal income tax treatment of ARI's 2022 distributions?

ARI's 2022 distributions include $0.35 per share in ordinary income with portions treated as return of capital or capital gains.

When are ARI's 2022 distributions payable?

Distributions for 2022 were payable on specific dates from January 2022 to January 2023.

What is the total distribution amount per share for ARI in 2022?

The total distribution for common stock in 2022 was $0.35 per share quarterly.

Is ARI's dividend sustainable?

While ARI has consistently paid dividends, shareholders should monitor financial performance for sustainability.