Earlier this month, armour residential reit arr made an acquisition offer for javelin mortgage investment jmi. Apollo commercial real estate finance inc ari quote morningstar. View aris stock price, price target, dividend, earnings, financials, forecast, insider trades, news, and. Aug 10, 2014 the analysis of reits can also be some tricky stuff, particularly when it comes with understanding the differences between book value and net asset value. Apollo global management is one of the largest alternative asset managers serving many of the worlds most prominent investors. Value investors club apollo residential mtg inc amtg. The residential mortgage reit sector has faced significant. In fact, 89 percent of apollo commercial real estate finances loans are. Ari is a real estate investment trust that primarily originates, invests in, acquires and manages performing commercial real estate first. Apollo merges mortgage reits, prompts investigation from. It was only a matter a time given the massive discounts to book value in the sector. Find the latest book value per share for apollo commercial real estate finance ari.
Learn about ari with our data and independent analysis including price, star rating. Apollo residential mortgage currently trades at only 0. Armour residential significantly cut back on dividend payments over the last two years. As a reit, it is mandated to pay out the large majority of its earnings as dividends, and as a result, has a high dividend yield and payout ratio. Apollo comm real estate ari reit that invests inacquires first mortgage loansmezzanine loanscommercial mortgagebacked securities. Mar 26, 2015 mortgage realestate investment trust stocks are trading at just over 0. The companys owned assets include a network of upscale, meetingsfocused resorts managed by marriott international, inc. Mar 30, 2016 earlier this month, armour residential reit arr made an acquisition offer for javelin mortgage investment jmi. On friday, shares in new yorkbased apollo commercial real estate finance inc. Transaction value represents a significant premium to amtgs common stock price. By regulation, apollo residential is forced to payout 90% of its taxable reit income as dividends to its shareholders. Reits trading at big premium to book value seeking alpha. Jun 25, 2014 armour residential significantly cut back on dividend payments over the last two years.
Mortgage realestate investment trust stocks are trading at just over 0. Attractive mortgage reits, stable dividends barrons. Reits provide all investors the chance to own valuable real estate, present the opportunity to access dividendbased income and total returns, and help communities grow, thrive, and revitalize. Heres a look at the largest mortgage reit exchangetraded fund. Reit stocks on investors radar apollo commercial real. Breit is a nontraded reit that seeks to invest in stabilized commercial real estate properties with a focus on providing current income.
Apollo commercial real estate finance ari book value. Detailed stock information of publicly traded real estate investment trusts and real estate operating companies. This deal almost didnt get done, had a large retail component retail is hugely influential in the mortgage reit space given its appeal to income oriented investors and has gotten pummeled in its first week of trading. Javelin was trading for just 63% of book value prior to the offer, and armour. Armour residential reit s q1, 2020, and 2021 earnings trimmed by analysts 12. Earlier this year, apollo commercial real estate acquired another apollo affiliated reit, apollo residential mortgage inc. Here is a handy table showing the largest constituents of each other reit subsector and their pricetobook values. Apollo commercial real estate finance is a real estate investment trust that primarily originates, invests in, acquires and manages performing commercial first mortgage loans, subordinate financings, commercial mortgage backed securities and other commercial real estaterelated debt investments. Apollo commercial real estate finance ari book value per. Residential forsale properties 21%, hotels 19% and urban retail development. The six reits trading at the steepest discounts to their book values are.
Nov 16, 2006 reits trading at big premium to book value. Two is a reit that focuses on investing, financing, and managing residential mortgagebacked securities rmbs and other investments. The fact that investors have historically demanded a discount to book value to buy apollo s shares is an indication that the market doesnt have confidence that the firms management is working towards maximizing per. If book values and dividends remain relatively stable, these stocks. Amtg today announced the aggregate consideration to be paid in connection with the acquisition of amtg by ari, which values amtg as of july 22, 2016 the. View realtime stock prices and stock quotes for a full financial overview.
Jan 12, 2020 an increase in interest rates would translate into a decrease in mortgage reit book values, driving stock prices lower. The net asset value nav is one of the best metrics to use when assessing the value of a real estate investment trust reit. Nrzs portfolio includes msrs, call rights, residential securities and loans, consumer loans, complementary operating businesses and ancillary services. Mar 04, 2020 the net asset value nav is one of the best metrics to use when assessing the value of a real estate investment trust reit.
Outlined in the figure below are the trading premiums to nta and the dividend yields at which the areit subsectors traded through 2016 and 2017. Enhance your regular income by adding this 12% yielder. Apollo commercial real estate earns relative strength rating upgrade. Apollo commercial real estate f ari stock price, quote, history. In defense of mortgage reits, despite rising interest rates. Stock analysis for apollo commercial real estate finance inc ari. Blocks investing in reits is in its fourth edition. Find the latest apollo commercial real estate f ari stock quote, history, news and other vital information to help you with your stock trading and investing. Apollo comm real estate ari reit that invests inacquires first mortgage loansmezzanine loans. Ladenburg thalmann slashes price target on armour residential.
A reit is a security traded like regular stocks that invests solely. Apollo commercial real estate finance ari passes through 18% yield mark 0430204. Invest at least 75% of total assets in real estate, cash, or u. Ari book value per share apollo commercial real estate. An increase in interest rates would translate into a decrease in mortgage reit book values, driving stock prices lower. Apollo commercial real estate finances book value per share for the quarter that ended in dec. The deal is expected to increase aris book value per share, the company said. Can apollo residential mortgage inc return to growth. The discounts to book value are so large now that many of the mortgage reits focused on agency rmbs residential mortgagebacked securities could. First quarter 2020 webcast scheduled for may 1, 2020. New york, august 1, 2016 prnewswire via comtex new york, august 1, 2016 prnewswire despite starting the year on shaky ground, the reits space. New york including stock price, stock chart, company news, key statistics, fundamentals and company profile. There are some who have asserted that the mreits are now trading at very steep discounts to book value.
In addition, mortgage reits get a considerable amount of their capital. Why apollo residential mortgage stock is surging the. Thats because residential mreits typically fund their investments with. Any of his editions are worth a read as they have long been considered the definitive guides to reit investments for both individual and institutional investors. The transaction price presented is rounded to two decimal places. Dont fall for this 14% yield reit that appears to be trading under book value aug. These trusts are also trading at pb levels lower than their respective threeyear medians. We have a valueoriented approach across private equity, credit, and real estate. They are definitely trading at very steep discounts to the book values that were.
During the past 3 years, the average book value per share growth rate was 10. Why apollo residential mortgage stock is surging the motley. Apollo residential mortgage inc market multiple valuation. Amtg today announced the signing of a definitive merger agreement the agreement under which ari will acquire amtg for consideration to be paid in cash and shares of ari common stock, which would value amtg at. Apollo also owns a stake of around 17% in deutsche annington, germanys biggest residential landlord, which was acquired by orf when he was at citi. The analysis of reits can also be some tricky stuff, particularly when it comes with understanding the differences between book value and net asset value. What is the best book to start learning about reits. By law, the majority of a reits profits are distributed as dividends.
Earlier this year, apollo commercial real estate acquired another apolloaffiliated reit, apollo residential mortgage inc. We have achieved scale across our differentiated and hardtoreplicate portfolio of valuecreating strategies. Diversified reit stocks technical report american tower. Vote your proxy online or by phone by dialing 800 6906903.
Arr and arrprc armour or the company announced today that it will. Book value per share is a widely used stock evaluation measure. Todays post will get into the technical world of this without making your head spin. The company valuation of apollo residential mortgage inc. Better pricing primes apollos buying mission for take off. May 01, 2020 in depth view into armour residential reit price to book value including historical data from 2003, charts, stats and industry comps. Sreits trading at discounts to historical median book values.
Equity reit sectors in terms of the last twelve months funds from operations ltm ffo multiple. Arr stock quote, history, news and other vital information to help you with your stock trading and investing. The above share class information represents the transaction price for each share class of our common stock for subscriptions accepted as of february 1, 2020 and repurchases as of january 31, 2020. Diversified reits are largely exposed to retail and office, with some exposure to industrial and residential. What is the best book to start learning about reits investment. Apollo commercial real estate finance to be able to trade up to book value. Transaction value represents a significant premium to amtgs common stock price transaction expected to be accretive to aris book value per share of common stock new yorkbusiness wirefeb. During the past 12 months, apollo commercial real estate finances average book value per share growth rate was 20. Sreits trading at discounts to historical median book.