- Earnings will likely remain at the third quarter’s level throughout next year. Problems with the office portfolio will likely offset the recovery in hotels and retail.
- The current dividend level is difficult to sustain because of the earnings level. As a result, a $0.05 per share cut in quarterly dividends is possible next year.
- The forward dividend yield of 10.8% and potential price upside give total expected return of 18.6%, which is attractive for high risk-tolerant investors.
- ARI is carrying a moderately-high level of risk, which tarnishes the REIT's attractiveness for medium to low risk-tolerant investors.
For further details see:
Apollo Commercial Real Estate Finance: 12.5% Dividend Yield, But Dividend Appears Unsustainable