Apollo Commercial Real Estate Finance, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a net loss of $91.5 million for the quarter, a stark contrast to a net income of $46.1 million in the same period of the previous year. This resulted in a loss per share of $0.69, compared to earnings of $0.30 per share in Q3 2023. For the nine months ended September 30, 2024, the net loss totaled $160.3 million, compared to a modest profit of $11.6 million in the prior year.
Total net revenue for the third quarter of 2024 was $71.6 million, down from $81.2 million in Q3 2023. The decline was primarily driven by a decrease in net interest income, which fell to $47.0 million from $60.2 million year-over-year. The company also reported a realized loss of $127.5 million related to the extinguishment of the Massachusetts Healthcare Loan, contributing to the overall losses.
In terms of assets, Apollo's total assets decreased to $9.1 billion as of September 30, 2024, from $9.3 billion at the end of 2023. The real estate owned, held for investment, increased significantly to $708.5 million, up from $519.5 million at the end of the previous year, reflecting strategic acquisitions. However, the accumulated deficit widened to $824.8 million from $520.2 million.
The company’s debt related to real estate owned also rose to $278.8 million, compared to $161.6 million at the end of 2023. Total stockholders' equity decreased to $1.87 billion from $2.21 billion, indicating a challenging financial environment.
Apollo's management fees decreased slightly to $8.8 million for Q3 2024 from $9.5 million in Q3 2023, reflecting the decline in stockholders' equity. The company declared a dividend of $0.25 per share for the quarter, down from $0.35 in the same period last year.
Strategically, Apollo has been active in managing its loan portfolio, which as of September 30, 2024, consisted of $7.5 billion in commercial mortgage loans. The company has also engaged in significant loan repayments and sales, totaling $1.7 billion for the nine months ended September 30, 2024. The firm continues to navigate a complex market, with a focus on maintaining compliance with its financial covenants while managing its capital structure effectively.
About Apollo Commercial Real Estate Finance, Inc.
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