Apollo Commercial Real Estate Finance, Inc. (ARI) reported a net loss attributable to common stockholders of ($0.69) per diluted share for the third quarter ended September 30, 2024. Distributable Earnings per share were ($0.59), while Distributable Earnings prior to net realized loss on investments stood at $0.31 per share.
The company recorded a $127.5 million realized loss within net realized loss on investments during the quarter, primarily stemming from the Massachusetts Healthcare loan. ARI had ceased accruing interest on this loan during the period, and debt service payments reduced its carrying value.
As part of the resolution, ARI and Apollo Co-Lenders acquired title to one of the eight hospitals securing the loan on September 4, 2024. This hospital was subsequently taken by eminent domain by the Commonwealth of Massachusetts on September 26, 2024, with an amount to be paid of $21.9 million, significantly below its 2024 tax assessed value of $200.8 million.
On September 30, 2024, guarantors made a payment on the loan, and the deeds of the remaining seven hospitals were transferred into escrow, releasing the borrowers from their obligations. ARI wrote-off the remaining Specific CECL Allowance and recorded a realized loss based on the fair value of these properties. As of September 30, 2024, ARI recorded $159.7 million in other assets related to this resolution.
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