Apollo Commercial Real Estate Finance, Inc. details the federal tax treatment of its 2024 stock distributions.
Quiver AI Summary
Apollo Commercial Real Estate Finance, Inc. announced the estimated federal income tax treatment for its 2024 distributions on common stock and its 7.25% Series B-1 Cumulative Redeemable Perpetual Preferred Stock. The press release includes a breakdown of the dollar amounts classified as ordinary dividends, qualified dividends, non-dividend distributions, and Section 199A dividends. Stockholders are advised that cash distributions made in January 2025 will be treated for tax purposes as 2025 distributions since the 2024 cash distributions exceeded earnings. The company, externally managed by ACREFI Management, LLC, focuses on commercial mortgage loans and debt investments and encourages stockholders to consult tax advisors regarding their specific tax circumstances. Additionally, the release contains forward-looking statements that carry risks and uncertainties related to the company's business and the broader economic environment.
Potential Positives
- Announcement of estimated federal income tax treatment for 2024 distributions provides clarity for investors, aiding in their financial planning.
- Distributions may qualify for a 20% deduction under Section 199A of the Internal Revenue Code, which could enhance the tax efficiency of shareholder returns.
- Consistent distribution amounts reflect the company's stable financial performance and commitment to returning value to shareholders.
- The company's alignment with Apollo Global Management, with substantial assets under management, reinforces credibility and investor confidence.
Potential Negatives
- The press release reveals that the company's cash distributions for 2024 exceeded its earnings and profits, indicating potential financial strain.
- Stockholders are advised to consult tax advisors regarding the tax treatment of distributions, suggesting complexity and uncertainty that may be a deterrent for investors.
- The company's reliance on external management by ACREFI Management, LLC raises concerns about governance and control over strategic decisions, which could impact investment outcomes.
FAQ
What are the tax implications of Apollo ARI’s 2024 distributions?
The estimated federal income tax treatment for common stock and preferred stock distributions has been detailed in the press release.
When will the 2024 distributions be paid?
The distributions are scheduled for January 12, April 15, July 15, and October 15 of 2024.
How should stockholders report January 2025 distributions?
Distributions paid on January 15, 2025, are treated as received on December 31, 2024, affecting tax reporting accordingly.
What kind of dividends are included in the distributions?
The distributions include ordinary dividends, qualified dividends, and non-dividend distributions as outlined in the announcement.
Where can I find more information about Apollo Commercial Real Estate Finance?
More details are available on Apollo's website at www.apollocref.com.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$ARI Insider Trading Activity
$ARI insiders have traded $ARI stock on the open market 5 times in the past 6 months. Of those trades, 0 have been purchases and 5 have been sales.
Here’s a breakdown of recent trading of $ARI stock by insiders over the last 6 months:
- SCOTT PRINCE has made 0 purchases and 4 sales selling 44,935 shares for an estimated $452,603.
- PAMELA G CARLTON sold 833 shares for an estimated $8,596
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$ARI Hedge Fund Activity
We have seen 91 institutional investors add shares of $ARI stock to their portfolio, and 113 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- ARETE WEALTH ADVISORS, LLC removed 673,350 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $6,188,086
- LUXOR CAPITAL GROUP, LP removed 432,325 shares (-57.6%) from their portfolio in Q3 2024, for an estimated $3,973,066
- ALLSPRING GLOBAL INVESTMENTS HOLDINGS, LLC removed 372,460 shares (-21.1%) from their portfolio in Q3 2024, for an estimated $3,422,907
- VANGUARD GROUP INC removed 320,978 shares (-2.1%) from their portfolio in Q3 2024, for an estimated $2,949,787
- GOLDMAN SACHS GROUP INC added 203,853 shares (+54.9%) to their portfolio in Q3 2024, for an estimated $1,873,409
- ADVISORS ASSET MANAGEMENT, INC. added 196,122 shares (+72.0%) to their portfolio in Q3 2024, for an estimated $1,802,361
- EXODUSPOINT CAPITAL MANAGEMENT, LP added 183,176 shares (+inf%) to their portfolio in Q3 2024, for an estimated $1,683,387
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
NEW YORK, Jan. 24, 2025 (GLOBE NEWSWIRE) -- Apollo Commercial Real Estate Finance, Inc. (the “Company” or “ARI”) (NYSE:ARI) today announced the estimated federal income tax treatment of the Company’s 2024 distributions on its common stock (CUSIP #03762U105) and its 7.25% Series B-1 Cumulative Redeemable Perpetual Preferred Stock.
The federal income tax classification of the 2024 distributions on the Company’s common stock as it is expected to be reported on Form 1099-DIV is set forth in the following table ($ per share):
Record Date | Payable Date | Total Distribution Per Share | Ordinary Dividend | Qualified Dividend | Non-dividend Distribution | Section 199A Dividend ( 1 ) | |||||
12/29/2023 | 01/12/2024 | $0.35000 | $0.151978 | $0.009218 | $0.198022 | $0.142760 | |||||
03/28/2024 | 04/15/2024 | $0.35000 | $0.151978 | $0.009218 | $0.198022 | $0.142760 | |||||
06/28/2024 | 07/15/2024 | $0.35000 | $0.151978 | $0.009218 | $0.198022 | $0.142760 | |||||
09/30/2024 | 10/15/2024 | $0.25000 | $0.108555 | $0.006584 | $0.141445 | $0.101971 |
( 1 ) May be eligible for a 20% deduction under Section 199A of the Internal Revenue Code of 1986, as amended (the “IRC”). Stockholders are encouraged to consult with their own tax advisors as to their specific tax treatment of the Company's distributions.
The federal income tax classification of the 2024 distributions on the Company’s 7.25% Series B-1 Cumulative Redeemable Perpetual Preferred Stock as it is expected to be reported on Form 1099-DIV is set forth in the following table ($ per share):
Record Date | Payable Date | Total Distribution Per Share | Ordinary Dividend | Qualified Dividend | Non-dividend Distribution | Section 199A Dividend |
03/28/2024 | 04/15/2024 | $0.453125 | $0.453125 | $0.027483 | - | $0.425642 |
06/28/2024 | 07/15/2024 | $0.453125 | $0.453125 | $0.027483 | - | $0.425642 |
09/30/2024 | 10/15/2024 | $0.453125 | $0.453125 | $0.027483 | - | $0.425642 |
Pursuant to Section 857(b)(9) of the IRC, cash distributions made on January 15, 2025, with a record date of December 31, 2024, are treated as received by stockholders on December 31, 2024 to the extent of 2024 earnings and profits. As the Company’s aggregate 2024 cash distributions exceeded its 2024 earnings and profits, the January 2025 cash distributions declared in December 2024 are treated as 2025 distributions for federal income tax purposes and are not included on the 2024 Form 1099-DIV.
Stockholders are encouraged to consult with their own tax advisors as to their specific tax treatment of the Company's distributions.
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 $733 billion of assets under management as of September 30, 2024.
Additional information can be found on the Company's website at www.apollocref.com . Please note that our URL address has changed.
Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company’s control. These forward-looking statements include information about possible or assumed future results of the Company’s business, financial condition, liquidity, results of operations, plans and objectives. When used in this release, the words believe, expect, anticipate, estimate, plan, continue, intend, should, may or similar expressions, are intended to identify forward-looking statements. Statements regarding the following subjects, among others, may be forward-looking: high interest rates and inflation; market trends in the Company’s industry, real estate values, the debt securities markets or the general economy; the timing and amounts of expected future fundings of unfunded commitments; the return on equity; the yield on investments; the ability to borrow to finance assets; the Company’s ability to deploy the proceeds of its capital raises or acquire its target assets; and risks associated with investing in real estate assets, including changes in business conditions and the general economy. For a further list and description of such risks and uncertainties, see the reports filed by the Company with the Securities and Exchange Commission. The forward-looking statements, and other risks, uncertainties and factors are based on the Company’s beliefs, assumptions and expectations of its future performance, taking into account all information currently available to the Company. Forward-looking statements are not predictions of future events. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
CONTACT: |
Hilary Ginsberg
Investor Relations (212) 822-0767 |
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