Apollo reports $328m in Q1 CRE debt investments

Apollo Commercial Real Estate Finance (ARI) reported $328 million in new debt investments for the first quarter of the year.

Apollo Commercial Real Estate Finance (ARI) reported $328 million in new debt investments for the first quarter of the year.

That consisted of $251 million in first mortgage loans, underwritten to generate a levered weighted average IRR of approximately 15 percent; and $77 million in subordinate loans, underwritten to generate a 14 percent IRR, in line with the 14.5 percent average on the company’s $2.6 billion commercial real estate debt portfolio

Rothstein
Rothstein

ARI also funded $17.4 million for previously closed loans and received approximately $34.7 million from loan repayments during the quarter.

Its portfolio, including CMBS, held-to-maturity, had a weighted average loan-to-value of 62 percent: 67 percent on first mortgage loans and 64 percent on subordinate loans. The company generated $46.8 million of net interest income from the portfolio. 

“Despite the volatility in the broader capital markets, ARI’s commercial real estate debt portfolio continues to perform well and we continue to identify compelling new investments,” said CEO and president Stuart Rothstein.

“We believe ARI remains well positioned to take advantage of opportunities created by the market volatility and the company’s investment pipeline continues to build.”

The company reported operating earnings of $29.8 million, or $0.44 per diluted share of common stock — excluding expenses associated with the proposed acquisition of Apollo Residential Mortgage (AMTG), which totaled approximately $5.1 million during the quarter.  

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