Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI) Q3 2023 Earnings Call October 31, 2023 10:00 AM ET

Company Participants

Stuart A. Rothstein - Chief Executive Officer

Scott Weiner - Chief Investment Officer

Anastasia Mironova - Chief Financial Officer

Conference Call Participants

Sarah Barcomb - BTIG

Stephen Laws - Raymond James

Richard Shane - JP Morgan

Jade Rahmani - KBW

Operator

I would like to remind everyone that today's call and webcast are being recorded. Please note that they are the property of Apollo Commercial Real Estate Finance, Inc. and that any unauthorized broadcast in any form is strictly prohibited. Information about the audio replay of this call is available in our earnings press release.

I'd also like to call your attention to the customary Safe Harbor disclosure in our press release regarding forward-looking statements. Today's conference call and webcast may include forward-looking statements and projections, and we ask that you refer to our most recent filings with the SEC for important factors that could cause actual results to differ materially from these statements and projections.

In addition, we will be discussing certain non-GAAP measures on this call, which management believes are relevant to assessing the company's financial performance. These measures are reconciled to GAAP figures in our earnings presentation, which is available in the Stockholders section of our website. We do not undertake any obligation to update our forward-looking statements or projections, unless required by law. To obtain copies of our latest SEC filings, please visit our website at www.apollocref.com or call us at (212) 515-3200.

At this time, I'd like to turn the call over to the company's Chief Executive Officer, Stuart Rothstein.

Stuart A. Rothstein

Good morning, and thank you for joining us on the Apollo Commercial Real Estate Finance, Inc. third quarter 2023 earnings call. I am joined today by Chief Investment Officer, Scott Weiner; and Anastasia Mironova, ARI's Chief Financial Officer.

ARI had another quarter of distributable earnings in excess of the common stock dividend, benefiting from elevated base rates in the company's $8 billion floating rate loan portfolio. For the first nine months of 2023, ARI reported distributable earnings prior to net realized loss on investments and realized gain on extinguishment of debt of $1.33 resulting in a dividend per share covered ratio of approximately 1.3 times. The higher rate environment continues to impact all aspects of the real estate market. For most of the year, the dialogue has focused on the Fed's use of short-term rate hikes to reduce the rate of inflation.