Apollo Commercial Real Estate Finance, Inc. Announces 2024 Dividend Income Tax Treatment
Rhea-AI Summary
Apollo Commercial Real Estate Finance (NYSE:ARI) has released its 2024 dividend income tax treatment report. The company distributed quarterly dividends on its common stock, with $0.35 per share for the first three quarters and $0.25 for the fourth quarter. These distributions are classified into different tax categories: ordinary dividend, qualified dividend, non-dividend distribution, and Section 199A dividend.
For the 7.25% Series B-1 Cumulative Redeemable Perpetual Preferred Stock, ARI paid consistent quarterly distributions of $0.453125 per share. These preferred stock distributions were entirely classified as ordinary dividends, with a portion qualifying for Section 199A treatment.
The company notes that cash distributions made on January 15, 2025, with a December 31, 2024 record date, will be treated as 2025 distributions for federal tax purposes due to the 2024 distributions exceeding earnings and profits.
Positive
- Maintained consistent quarterly preferred stock dividend payments of $0.453125 per share
- Common stock dividends maintained at $0.35 per share for first three quarters of 2024
Negative
- Reduced Q4 2024 common stock dividend to $0.25 from $0.35 per share, a 28.6% decrease
- 2024 distributions exceeded earnings and profits, affecting tax treatment of subsequent payments
News Market Reaction – ARI
In the trading session that priced this news, ARI gained 0.56%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
NEW YORK, Jan. 24, 2025 (GLOBE NEWSWIRE) -- Apollo Commercial Real Estate Finance, Inc. (the “Company” or “ARI”) (NYSE:ARI) today announced the estimated federal income tax treatment of the Company’s 2024 distributions on its common stock (CUSIP #03762U105) and its
The federal income tax classification of the 2024 distributions on the Company’s common stock as it is expected to be reported on Form 1099-DIV is set forth in the following table ($ 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 | ||||||||||
| 03/28/2024 | 04/15/2024 | ||||||||||
| 06/28/2024 | 07/15/2024 | ||||||||||
| 09/30/2024 | 10/15/2024 | ||||||||||
(1) May be eligible for a
The federal income tax classification of the 2024 distributions on the Company’s
| Record Date | Payable Date | Total Distribution Per Share | Ordinary Dividend | Qualified Dividend | Non-dividend Distribution | Section 199A Dividend |
| 03/28/2024 | 04/15/2024 | - | ||||
| 06/28/2024 | 07/15/2024 | - | ||||
| 09/30/2024 | 10/15/2024 | - | ||||
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
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 | |
