A
pollo Commercial Real Estate Finance Inc (ARI) reported distributable earnings of $44 million or $0.31 per share for Q3, with a loan portfolio comprising 45 loans totaling $7.8 billion. The weighted average unlevered yield was 8.5%, and the company received $953 million in loan repayments during the quarter. ARI's debt-to-equity ratio stood at 3.5 times, while total liquidity exceeded $300 million.

    The company reported a GAAP net loss of $95 million or negative $0.69 per diluted share due to a $128 million realized loss from a loan resolution and increased interest expense to $134 million. A EUR200 million loan secured by German office assets was downgraded to a risk rating of 4, indicating potential credit risk.

    ARI successfully leased the retail component at 111 West 57th Street to Bonhams, enhancing the property's value and future revenue potential. The company has committed over $1.1 billion to new vintage loans in the past nine months and received $1.7 billion in loan repayments year-to-date, showcasing effective capital recovery.

    The Massachusetts hospital loan remains a challenge, with two hospitals closed and ongoing legal proceedings regarding eminent domain. ARI's book value per share was $12.73, excluding general CECL allowance and depreciation, while the CECL allowance stood at $381 million or $2.74 per share of book value. The company declared a Q3 dividend of $0.25 per share of common stock.