Apollo Commercial: Business Model Is Changing Following Sale Of Loan Portfolio (Rating Downgrade)
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Cain Lee8.39K FollowersFollow5ShareSavePlay(14min)CommentsFollow us on Google for the latest stock newsFollow Seeking Alpha on Google for the latest stock newsSummaryApollo Commercial Real Estate Finance is downgraded to hold due to an uncertain income outlook following the $9B loan portfolio sale.ARI now holds significant cash, reduced risk, and a stable share price, but lacks a clear forward strategy for income generation.Management is evaluating options, including expanding real estate owned assets and cost reductions, while maintaining a 9% dividend yield.Existing shareholders are incentivized to hold with a high yield, but new investors lack a compelling entry point until strategic clarity emerges. Klaus Vedfelt/DigitalVision via Getty Images Overview It has now been more than two years since I covered Apollo Commercial Real Estate Finance (ARI), so I thought it would be appropriate to revisit the fund and provide some updatedThis article was written byCain Lee8.39K FollowersFollowFinancial analyst by day and a seasoned investor by passion, I've been involved in the world of investing for over 15 years and honed my skills in analyzing lucrative opportunities within the market.I specialize in uncovering high quality dividend stocks and other assets that offer potential for long term-growth that pack a serious punch for bill-paying potential. I use myself as an example that with a solid base of classic dividend growth stocks, sprinkling in some Business Development Companies, REITs, and Closed End Funds can be a highly efficient way to boost your investment income while still capturing a total return that follows traditional index funds. I created a hybrid system between growth and income and manage to still capture a total return that is on par with the S&P.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.