Apollo Commercial Real Estate Finance, Inc. Completes $3.7 Billion of Mortgage Originations in 2022

Rhea-AI Summary

Apollo Commercial Real Estate Finance (ARI) announced a robust loan origination of $3.7 billion for 2022, with $243.1 million secured in Q4 alone. Driven by over $2.2 billion in loan repayments, ARI's portfolio management and performance continued to improve. The company sold properties backing non-performing loans, reinvesting in new opportunities. CEO Stuart Rothstein highlighted the company's strong market position and its intention to generate distributable earnings exceeding dividends in 2023, as ARI benefits from Apollo's global brand strength.

Positive

• Loan originations reached $3.7 billion in 2022.
• Fourth quarter secured $243.1 million in mortgages.
• Over $2.2 billion in loan repayments facilitated reinvestment.
• Successful sale of properties securing non-performing loans.
• Strong market position and potential for distributable earnings exceeding dividends in 2023.

Negative

• None.

NEW YORK, Jan. 12, 2023 (GLOBE NEWSWIRE) -- Apollo Commercial Real Estate Finance, Inc. (the “Company” or “ARI”) (NYSE:ARI) today announced the Company committed to $243.1 million of mortgages in the fourth quarter of 2022, bringing annual loan originations to $3.7 billion for the year.

“ARI had a strong year of loan originations, coupled with meaningful achievements in both portfolio and capital management,” said Stuart Rothstein, Chief Executive Officer and President of ARI. “The Company completed over $3.7 billion of new loan originations, many of which were funded by over $2.2 billion in loan repayments. ARI also made material progress with several of the Company’s focus loans, ending the year with the sale of the properties securing our non-performing loan in the Miami Design District. In connection with the sale, we provided seller financing to the new sponsorship group, immediately redeploying a large portion of the capital. ARI continues to benefit from the strength of Apollo’s global brand in the commercial real estate lending market and remains well positioned to generate distributable earnings in excess of our dividend per share of common stock in 2023.”

Fourth Quarter Portfolio Activity
New Investments – During the fourth quarter of 2022, ARI originated $243.1 million of mortgages ($229.1 million of which were funded during the quarter).

Funding of Previously Closed Loans – During the fourth quarter of 2022, ARI funded $148.4 million for loans closed during the preceding quarters.

Loan Repayments – During the fourth quarter of 2022, ARI received $0.7 billion from loan repayments. Of the loan repayments, approximately 91% came from loans secured by properties in the United States and 9% came from loans secured by properties in the United Kingdom and Europe. In addition, 33% of the loan repayments were from office loans, with the balance from retail, residential, hotel, healthcare, industrial and mixed use loans.

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 at September 30, 2022.

Additional information can be found on the Company's website at www.apollocref.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: macro- and micro-economic impact of the COVID-19 pandemic; increasing interest rates and inflation; 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 were Apollo Commercial Real Estate Finance's loan originations in 2022?

Apollo Commercial Real Estate Finance reported loan originations of $3.7 billion for the year 2022.

How much mortgages were secured by ARI in the fourth quarter of 2022?

In the fourth quarter of 2022, Apollo Commercial Real Estate Finance secured $243.1 million in mortgages.

What significant activities were noted in ARI's fourth quarter report?

ARI funded $148.4 million for previously closed loans and received $700 million from loan repayments in the fourth quarter.

What is Apollo Commercial Real Estate Finance's future outlook for 2023?

ARI aims to generate distributable earnings exceeding its dividend per share in 2023.

What portion of ARI's loan repayments came from U.S. properties?

Approximately 91% of ARI's loan repayments came from loans secured by properties in the United States.