Apollo Commercial Real Estate (ARI) announces dividend cut.
Apollo Commercial Real Estate Finance, Inc. announced today that its annual dividend rate for 2020 would be $1.60/share, representing a 13% decrease from the $1.84/share dividend rate for 2019.
As stated in the company's fourth quarter earnings release, ROE from the loan portfolio is expected to decline this year due to the repayment of higher yielding mezzanine loans and a "strategic decision to shift the composition of ARI's loan portfolio into senior loans." Management also cited lower yields on newly originated loans and change in LIBOR expectations as negative factors on portfolio returns.
ARI is a commercial mortgage REIT with a total market capitalization of approximately $6.7 billion. The company is externally managed by Apollo Global Management, LLC, a publicly-traded alternative asset manager with approximately $300 billion of assets under management.