FBR Capital Reiterates an 'Outperform' on Apollo Commercial Real Estate Finance (ARI); An Unappreciated, Stable Yield

FBR Capital reiterates an 'Outperform' on Apollo Commercial Real Estate Finance (NYSE: ARI), PT $18.

FBR analyst says, "Simply, in an erratic macroeconomic landscape, we believe ARI shares, at current levels, offer an attractive investment opportunity to capture a stable, and robust, dividend stream (10%) at a 5% discount to book value ($16.77 as of March 31). Despite recent spread widening across the CMBS landscape, we believe ARI's book value to be only minimally impacted as ARI's CMBS exposure is AAA only. Recall that estimated portfolio fair value at March 31 was $17.76. We believe ARI's dividend is well supported, especially as forward earnings fully incorporate investments made in March as well as subsequent to 1Q11 end."

For more ratings news on Apollo Commercial Real Estate Finance click here and for the rating history of Apollo Commercial Real Estate Finance click here.

Shares of Apollo Commercial Real Estate Finance closed at $16.09 yesterday.

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