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July 26 , 2021 Apollo Commercial Real Estate Finance , Inc. Reports Second Quarter 2021 Results NEW YORK , July 26 , 2021 ( GLOBE NEWSWIRE ) -- Apollo Commercial Real Estate Finance , Inc. ( the " Company " or " ARI " ) ( NYSE : ARI ) , today reported results for the quarter and six- month period ended June 30 , 2021 . For the second quarter of 2021 , net income available to common stockholders per diluted share of common stock was $ 0.42 and Distributable Earnings ( a non - GAAP financial measure defined below ) and Distributable Earnings prior to realized losses and impairments on real estate owned and investments were $ 0.27 and $ 0.41 per share of common stock , respectively . Commenting on the financial results , Stuart Rothstein , Chief Executive Officer and President of the Company said : " ARI had an active and successful first half of 2021 , committing to over $ 1.4 billion of transactions in the United States and Western Europe . We remained focused on efficient capital deployment , as we funded a portion of our robust pipeline with the capital generated from $ 553 million of loan repayments . In addition , ARI continued to diversify the Company's capital sources and strengthen the balance sheet with the completion of an eight - year debut $ 500 million 4.625 % senior secured notes offering . " ARI issued a detailed presentation of the Company's three - month and six - month period ended June 30 , 2021 results , which can be viewed at www.apolloreit.com . Conference Call and Webcast : Members of the public who are interested in participating in the Company's second quarter 2021 earnings teleconference call should dial from the U.S. , ( 877 ) 331-6553 , or from outside the U.S. , ( 760 ) 666-3769 , shortly before 10:00 a.m. on Tuesday , July 27 , 2021 and reference the Apollo Commercial Real Estate Finance , Inc. Teleconference Call ( number 1651389 ) . Please note the teleconference call will be available for replay beginning at 1:00 p.m. on Tuesday , July 27 , 2021 and ending at midnight on Tuesday , August 3 , 2021. To access the replay , callers from the U.S. should dial ( 855 ) 859-2056 and callers from outside the U.S. should dial ( 404 ) 537-3406 , and enter conference identification number 1651389 . Distributable Earnings " Distributable Earnings " , a non - GAAP financial measure is defined as net income available to common stockholders , computed in accordance with GAAP , adjusted for ( i ) equity- based compensation expense ( a portion of which may become cash - based upon final vesting and settlement of awards should the holder elect net share settlement to satisfy income tax withholding ) , ( ii ) any unrealized gains or losses or other non - cash items ( including depreciation and amortization on real estate owned ) included in net income available to common stockholders , ( iii ) unrealized income from unconsolidated joint ventures , ( iv ) foreign currency gains ( losses ) , other than ( a ) realized gains / ( losses ) related to interest income , and ( b ) forward point gains / ( losses ) realized on the Company's foreign currency hedges , ( v ) the non - cash amortization expense related to the reclassification of a portion of the Company's convertible senior notes ( the " Notes " ) to stockholders ' equity in accordance with GAAP , and ( vi ) provision for loan losses . The weighted - average diluted shares outstanding used for Distributable Earnings per weighted - average diluted share has been adjusted from weighted - average diluted shares under GAAP to exclude shares issued from a potential conversion of the Notes . Consistent with the treatment of other unrealized adjustments to Distributable Earnings , these potentially issuable shares are excluded until a conversion occurs , which the Company believes is a useful presentation for investors . The Company believes that excluding shares issued in connection with a potential conversion of the Notes from its computation of Distributable Earnings per weighted - average diluted share is useful to investors for various reasons , including the following : ( i ) conversion of Notes to shares requires both the holder of a Note to elect to convert the Note and for the Company to elect to settle the conversion in the form of shares ; ( ii ) future conversion decisions by Note holders will be based on the Company's stock price in the future , which is presently not determinable ; ( iii ) the exclusion of shares issued in connection with a potential conversion of the Notes from the computation of Distributable Earnings per weighted - average diluted share is consistent with how the Company treats other unrealized items in its computation of Distributable Earnings per weighted - average diluted share ; and ( iv ) the Company believes that when evaluating its operating performance , investors and potential investors consider the Company's Distributable Earnings relative to its actual distributions , which are based on shares outstanding and not shares that might be issued in the future . As a REIT , U.S. federal income tax law generally requires the Company to distribute annually at least 90 % of its REIT taxable income , without regard to the deduction for dividends paid and excluding net capital gains , and that the Company pay tax at regular corporate rates to the extent that it annually distributes less than 100 % of its net taxable income . Given these requirements and the Company's belief that dividends are generally one of the principal reasons shareholders invest in a REIT , the Company generally intends over time to pay dividends to its stockholders in an amount equal to its net taxable income , if and to the extent authorized by the Company's board of directors . Distributable Earnings is a key factor considered by the Company's board of directors in setting the dividend and as such the Company believes Distributable Earnings is useful to investors . During the six months ended June 30 , 2021 , the Company recorded realized losses in the condensed consolidated statement of operations related to the change in expected sales timing of the Company's real estate owned , held for sale , and the foreclosure of the collateral related to a hotel loan . The Company believes it is useful to its investors to also present Distributable Earnings prior to realized losses and impairments on real estate owned , investments , and interest rate swap to reflect its operating results because ( i ) the Company's operating results are primarily comprised of earning interest income on its investments net of borrowing and administrative costs , which comprise the Company's ongoing operations and ( ii ) it has been a useful factor related to the Company's dividend per share because it is one of the considerations when a dividend is determined . The Company believes that its investors use Distributable Earnings and Distributable Earnings prior to realized losses and impairments on real estate owned , investments , and interest rate swap , or a comparable supplemental performance measure , to evaluate and compare the performance of the Company and its peers . A significant limitation associated with Distributable Earnings as a measure of the Company's financial performance over any period is that it excludes unrealized gains ( losses ) from investments . In addition , the Company's presentation of Distributable Earnings may not be comparable to similarly - titled measures of other companies , that use different calculations . As a result , Distributable Earnings should not be considered as a substitute for the Company's GAAP net income as a measure of its financial performance or any measure of its liquidity under GAAP . Distributable Earnings are reduced for realized losses on loans which include losses that management believes are near certain to be realized . A reconciliation of Distributable Earnings , and Distributable Earnings prior to realized losses and impairments on real estate owned , investments , and interest rate swap , to GAAP net income ( loss ) available to common stockholders is included in the detailed presentation of the Company's three - month and six - month period ended June 30 , 2021 results , which can be viewed at www.apolloreit.com . 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 $ 461 billion