NEW YORK, NY -- (Marketwire) -- 02/27/13 -- Apollo Commercial Real Estate Finance, Inc. (the "Company" or "ARI") (NYSE: ARI) today reported financial results for the quarter and full year ended December 31, 2012.
Fourth Quarter 2012 Highlights
•Generated $12.3 million of net interest income from the Company's $669 million investment portfolio, which had a current weighted average underwritten internal rate of return ("IRR") of approximately 12.7% and a levered weighted average underwritten IRR of approximately 14.1% at December 31, 2012; •Closed two loan transactions totaling $130.0 million of committed capital; and •Completed an underwritten public offering of 7,404,640 shares of common stock at a price of $16.81 per share, raising net proceeds of $124.1 million.
Full Year 2012 Highlights
•Completed eight new commercial real estate debt transactions totaling $214.8 million of committed equity representing $264.3 million of investments with a weighted average underwritten IRR of approximately 13%; •Raised $207.3 million of net proceeds through preferred and common stock offerings; and •Lowered the cost of the Company's financing facilities through:•Refinancing of the TALF debt, which produced $14.1 million of additional investable capital, lowered the weighted average cost of funds by approximately 70 basis points and extended the term of the debt through August 2013; and •Amending the Company's repurchase facility with JPMorgan Chase Bank, N.A (the "JPMorgan Facility") to reduce the interest rate by 50 basis points to LIBOR + 2.50%.
"2012 was a year of significant capital formation and portfolio growth for ARI, set against a backdrop of improving fundamentals in the commercial real estate markets," said Stuart Rothstein, Chief Executive Officer of the Company. "The Company's investment activity was robust, as we completed over $264 million of new transactions with a weighted average underwritten IRR of approximately 13%. ARI also was able to expand the Company's capital base through both a preferred stock offering and a common stock offering, as well as lower its cost of capital through refinancing and amending its financing facilities. Importantly, the credit quality of our investments remained stable. As we look ahead to 2013, the Company has gotten off to a strong start, having closed three new transactions totaling $103 million of committed equity."
Fourth Quarter and Full Year 2012 Operating Results
The Company reported Operating Earnings of $7.4 million, or $0.27 per share, for the three months ended December 31, 2012, as compared to Operating Earnings of $8.3 million, or $0.39 per share, for the three months ended December 31, 2011. The decrease in Operating Earnings per share primarily was due to the timing of the deployment of the capital raised from both the Company's preferred stock offering and common stock offering. Net income available to common stockholders for the three months ended December 31, 2012 was $7.1 million, or $0.26 per share, as compared to net income available to common stockholders of $8.7 million, or $0.41 per share, for the three months ended December 31, 2011.
Most Popular Stories
- American Airlines, US Airways Complete Merger
- ACA Delay Stresses Small Businesses
- Questions Remain in Jenni Rivera's Death
- Harley Issues Motorcycle Recall
- Unemployed Wait as Lawmakers Debate
- General Dynamics Plans 200 New Jobs in N.M.
- Auto Dealer Builds Big Solar Project
- Entrepreneurs' Next Creation May Be New Laws
- Saab Gets Back into the Game; U.S. Auto Sales Soar
- Dell Offers Undisclosed Number of Employee Buyouts