Company: ARI
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0000950170-25-017122
Chunk: 77

Company: Apollo Commercial Real Estate Finance, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 7
Chunk 77
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 realized loss on investments and gain on extinguishment of debt, or a comparable supplemental performance measure, to evaluate and compare the performance of our company and our peers.

A significant limitation associated with Distributable Earnings as a measure of our financial performance over any period is that it excludes unrealized gains (losses) from investments. In addition, our presentation of Distributable Earnings may not be comparable to similarly-titled measures of other companies, that use different calculations. As a result, Distributable Earnings should not be considered as a substitute for our GAAP net income as a measure of our financial performance or any measure of our liquidity under GAAP. Distributable Earnings are reduced for realized losses and increased for realized gains. 

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The table below summarizes the reconciliation from net income available to common stockholders to Distributable Earnings and Distributable Earnings prior to net realized loss on investments and gain on extinguishment of debt ($ in thousands):

    Year Ended December 31,

    2024

    2023

    Net income (loss) available to common stockholders
     
    $
    (131,908
    )
     
    $
    45,855

    Adjustments:

    Equity-based compensation expense

    16,468

    17,444

    Loss (gain) on foreign currency forwards

    (52,590
    )

    48,213

    Foreign currency loss (gain), net

    37,476

    (52,031
    )

    Unrealized loss on interest rate cap

    1,373

    10,098

    Realized gains relating to interest income on foreign currency hedges, net

    4,054

    11,882

    Realized gains relating to forward points on foreign currency hedges, net

    18,991

    8,397

    Depreciation and amortization on real estate owned

    11,668

    8,248

    Increase in current expected credit loss allowance, net

    155,784

    59,428

    Net realized loss on investments(1)

    128,191

    86,604

    Gain on extinguishment of debt(2)

    —

    (495
    )

    Total adjustments:

    321,415

    197,788

    Distributable Earnings prior to net realized loss on investments and gain on extinguishment of debt