Latest news with #OBDC
Business Wire
6 days ago
- Business
- Business Wire
Wingspire Equipment Finance Closes $70 Million Sale-Leaseback to Support U.S. Expansion for Global Paper Manufacturer
TUSTIN, Calif.--(BUSINESS WIRE)--Wingspire Equipment Finance has completed a $70 million sale-leaseback finance structure in connection with two high-capacity paper machines for a leading U.S. manufacturer. Proceeds from the financing will be used by the company to execute on its expansion plans, underscoring its foreign parent company's commitment to increasing market share in the highly competitive U.S. market. The tissue paper manufacturer has also made a shift in CapEx planning by proactively working with domestic capital providers, as it has historically funded its operations through its parent company. The sale-leaseback proved highly successful by delivering large proceeds, an extended term, and a compelling fixed rate. 'Our client has prioritized expansion and growth in production. They are leveraging acquisitions and greenfield investments in the U.S. to strengthen their position in a rapidly evolving and consolidating industry. We were delighted to earn their trust to complete this large and strategically important transaction. The proceeds will help fund another paper machine for the facility, already the largest and most automated in the parent company's worldwide operations,' said Jeffrey Okano, Senior Vice President of Originations at Wingspire Equipment Finance. Wingspire Equipment Finance continues to leverage its immense lending capacity to deliver large-scale capital solutions for its clients. This is especially crucial in a landscape of economic uncertainty and tightening credit standards. About Wingspire Equipment Finance: Wingspire Equipment Finance is a leading provider of equipment financing solutions, dedicated to empowering middle-market companies with flexible and innovative financial solutions. With a focus on client success and industry expertise, Wingspire Equipment Finance is dedicated to delivering strategic capital solutions that drive long-term success for its clients. Wingspire Equipment Finance is the equipment financing arm of Wingspire Capital, a portfolio company of Blue Owl Capital Corporation (NYSE: OBDC). OBDC is externally managed by Blue Owl Credit Advisors LLC, an indirect affiliate of Blue Owl Capital, Inc. (NYSE: OWL). Blue Owl Capital, Inc. is a global alternative asset manager with $284 billion of assets under management as of June 30th, 2025.
Yahoo
12-05-2025
- Business
- Yahoo
KBRA Assigns Rating to Blue Owl Capital Corporation's $500 Million Senior Unsecured Notes
NEW YORK, May 12, 2025--(BUSINESS WIRE)--KBRA assigns a rating of BBB+ to Blue Owl Capital Corporation's (NYSE: OBDC or "the company") $500 million, 6.20% senior unsecured notes due July 15, 2030. The Outlook for the rating is Stable. Key Credit Considerations The rating is supported by OBDC's ties to the $139 billion Blue Owl Credit platform that maintains a strong reputation and leadership position in the private credit market. OBDC's experienced management team that has decades of experience working in the private markets has built a high credit quality direct lending platform to finance mainly sponsor-backed portfolio companies in the upper middle market. Management has implemented a comparatively favorable and comprehensive set of risk management tools to ensure solid liquidity, funding, and asset quality in less favorable markets. The company benefits from SEC exemptive relief to co-invest with other funds managed by Blue Owl Credit Advisors LLC (the "Adviser") and its affiliates, as well as the company's diversified $17.7 billion investment with a focus on senior secured first lien loans (77.5%) to mostly upper middle market companies in mainly less cyclical industries as of March 31, 2025. The top three sectors were Internet Software & Services (10.9%), Healthcare Providers & Services (7.6%), and Insurance (7.5%). These sectors are less likely to be directly affected by proposed tariffs. For traditional financing (93.7%), excluding the company's joint ventures and certain investments that fall outside of the typical borrower profile, the weighted average annual EBITDA was $215 million. The rating also reflects the company's solid access to debt capital markets along with its comparatively stronger funding profile among KBRA rated BDCs. The already diverse funding profiles of OBDC and other Blue Owl BDCs have been further enhanced in recent periods. Funding sources include significant committed bank lines of credit, CLOs, and cost effective access to the senior unsecured note market. The funding structure provides significant financial flexibility and lower asset encumbrance with an unsecured debt to total debt ratio of 50.2%. The company has comfortable liquidity with ~$2.5 billion of available credit lines and ~$511 million of cash set against $2.64 billion of debt maturing within the next two years. Post quarter-end, the company repaid $142 million of July 2025 notes and this issuance is expected to repay the $500 million of notes coming due also in July 2025. The company's unfunded commitments were ~$1.9 billion, of which a portion is tied to covenants and transactions and is not expected to be drawn. The company's gross and net leverage were 1.33x and 1.26x, respectively, at 1Q25 and at the upper range of the company's net leverage target of 0.9x to 1.25x. KBRA views the company's asset coverage of 175% as adequate, allowing OBDC to absorb increased market volatility and a solid cushion to regulatory minimum of 150% as of 1Q25. Credit quality remains relatively solid with non-accruals as a percentage of total investments at cost and fair value of 1.4% and 0.4%. respectively, as of 1Q25. KBRA believes that OBDC benefits from the company's solid underwriting and focus on portfolio companies in the upper middle market with EBITDA in excess of $100 million. The strengths are counterbalanced by the potential industrywide risks related to the company's illiquid investments, an unseasoned investment portfolio with high portfolio growth, retained earnings constraints as a regulated investment company (RIC), and the potential for increased non-accruals with a more uncertain economic environment with high base rates, inflation, and geopolitical risk. KBRA believes that OBDC and other Blue Owl BDCs will remain comparatively resilient. Blue Owl Capital Corporation is an externally managed, non-diversified closed-end management investment company that has elected to be treated as a business development company under the 1940 Act and has elected to be treated as a RIC, which, among other things, must distribute to its shareholders at least 90% of the company's taxable income. The company commenced operations in March 2016 and was publicly listed on the NYSE in July 2019. The company is managed by Blue Owl Credit Advisors LLC, an indirect subsidiary of Blue Owl Capital, Inc. (NYSE: OWL), which had approximately $273 billion of assets under management as of March 31, 2025. Rating Sensitivities The rating is unlikely to be upgraded in the medium term. A rating downgrade and/or Outlook change to Negative could be considered if there is a significant downturn in the U.S. economy with a greater-than-expected negative impact to OBDC's earnings performance, asset quality, and leverage. A significant change in senior management and/or risk management policies could also lead to negative rating action. To access ratings and relevant documents, click here. Methodologies Financial Institutions: Finance Company Global Rating Methodology ESG Global Rating Methodology Disclosures A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here. Information on the meaning of each rating category can be located here. Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at About KBRA Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan's Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Doc ID: 1009352 View source version on Contacts Analytical Contacts Teri Seelig, Managing Director (Lead Analyst)+1 Kevin Kent, Director+1 Business Development Contact Constantine Schidlovsky, Senior Director+1 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
12-05-2025
- Business
- Business Wire
KBRA Assigns Rating to Blue Owl Capital Corporation's $500 Million Senior Unsecured Notes
NEW YORK--(BUSINESS WIRE)--KBRA assigns a rating of BBB+ to Blue Owl Capital Corporation's (NYSE: OBDC or "the company") $500 million, 6.20% senior unsecured notes due July 15, 2030. The Outlook for the rating is Stable. Key Credit Considerations The rating is supported by OBDC's ties to the $139 billion Blue Owl Credit platform that maintains a strong reputation and leadership position in the private credit market. OBDC's experienced management team that has decades of experience working in the private markets has built a high credit quality direct lending platform to finance mainly sponsor-backed portfolio companies in the upper middle market. Management has implemented a comparatively favorable and comprehensive set of risk management tools to ensure solid liquidity, funding, and asset quality in less favorable markets. The company benefits from SEC exemptive relief to co-invest with other funds managed by Blue Owl Credit Advisors LLC (the "Adviser") and its affiliates, as well as the company's diversified $17.7 billion investment with a focus on senior secured first lien loans (77.5%) to mostly upper middle market companies in mainly less cyclical industries as of March 31, 2025. The top three sectors were Internet Software & Services (10.9%), Healthcare Providers & Services (7.6%), and Insurance (7.5%). These sectors are less likely to be directly affected by proposed tariffs. For traditional financing (93.7%), excluding the company's joint ventures and certain investments that fall outside of the typical borrower profile, the weighted average annual EBITDA was $215 million. The rating also reflects the company's solid access to debt capital markets along with its comparatively stronger funding profile among KBRA rated BDCs. The already diverse funding profiles of OBDC and other Blue Owl BDCs have been further enhanced in recent periods. Funding sources include significant committed bank lines of credit, CLOs, and cost effective access to the senior unsecured note market. The funding structure provides significant financial flexibility and lower asset encumbrance with an unsecured debt to total debt ratio of 50.2%. The company has comfortable liquidity with ~$2.5 billion of available credit lines and ~$511 million of cash set against $2.64 billion of debt maturing within the next two years. Post quarter-end, the company repaid $142 million of July 2025 notes and this issuance is expected to repay the $500 million of notes coming due also in July 2025. The company's unfunded commitments were ~$1.9 billion, of which a portion is tied to covenants and transactions and is not expected to be drawn. The company's gross and net leverage were 1.33x and 1.26x, respectively, at 1Q25 and at the upper range of the company's net leverage target of 0.9x to 1.25x. KBRA views the company's asset coverage of 175% as adequate, allowing OBDC to absorb increased market volatility and a solid cushion to regulatory minimum of 150% as of 1Q25. Credit quality remains relatively solid with non-accruals as a percentage of total investments at cost and fair value of 1.4% and 0.4%. respectively, as of 1Q25. KBRA believes that OBDC benefits from the company's solid underwriting and focus on portfolio companies in the upper middle market with EBITDA in excess of $100 million. The strengths are counterbalanced by the potential industrywide risks related to the company's illiquid investments, an unseasoned investment portfolio with high portfolio growth, retained earnings constraints as a regulated investment company (RIC), and the potential for increased non-accruals with a more uncertain economic environment with high base rates, inflation, and geopolitical risk. KBRA believes that OBDC and other Blue Owl BDCs will remain comparatively resilient. Blue Owl Capital Corporation is an externally managed, non-diversified closed-end management investment company that has elected to be treated as a business development company under the 1940 Act and has elected to be treated as a RIC, which, among other things, must distribute to its shareholders at least 90% of the company's taxable income. The company commenced operations in March 2016 and was publicly listed on the NYSE in July 2019. The company is managed by Blue Owl Credit Advisors LLC, an indirect subsidiary of Blue Owl Capital, Inc. (NYSE: OWL), which had approximately $273 billion of assets under management as of March 31, 2025. Rating Sensitivities The rating is unlikely to be upgraded in the medium term. A rating downgrade and/or Outlook change to Negative could be considered if there is a significant downturn in the U.S. economy with a greater-than-expected negative impact to OBDC's earnings performance, asset quality, and leverage. A significant change in senior management and/or risk management policies could also lead to negative rating action. To access ratings and relevant documents, click here. Methodologies Disclosures A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here. Information on the meaning of each rating category can be located here. Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at About KBRA Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan's Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Doc ID: 1009352
Yahoo
11-05-2025
- Business
- Yahoo
Seeking 10% Dividend Yield? Jefferies and BTIG Suggest 2 Dividend Stocks to Buy
High-yield dividend stocks can be a powerful way to generate steady income – and a few are offering payouts that crush the market average. Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Investment firms Jefferies and BTIG have recently pointed to two such names that stand out. Both offer dividend yields approaching 10% – about seven times higher than the S&P 500 average. However, diving into high-yield stocks calls for extra diligence. While they can offer attractive income, they may also come with increased risks, such as potential dividend cuts or underlying business challenges. That's why we turned to the TipRanks database to see whether the rest of Wall Street is backing these picks. Here's what we found. Blue Owl Capital Corporation (OBDC) We're starting with a BDC – short for Business Development Company. These companies step in where traditional banks often won't, offering capital and credit to growing businesses that power the U.S. economy. Blue Owl Capital Corporation (OBDC) is a key player here, providing financing and credit services to the kinds of firms that have long served as the country's economic engine. OBDC is managed by Blue Owl Credit Advisors, an arm of Blue Owl Capital Inc., and it specializes in financing middle-market companies. The firm takes a debt-first approach, with a selective eye toward equity, building a portfolio that now spans 236 businesses with a combined fair value of $17.7 billion. The average investment size is $75 million. Looking at the drill-downs, we find that the company's portfolio is made up mainly of first-lien senior secured loans, at ~76% of the total. Common equity makes up ~12%, and second-lien senior secured loans make up ~5%. Of the total portfolio, 96.5% of the assets are floating rate, and the remainder are fixed. OBDC invests in a wide range of business sectors, and more than half of its investments are in the Southern and Western regions of the US. Financially, the company reported adjusted net investment income of $0.39 per share in Q1 2025. That came in below expectations, missing forecasts by 4 cents. The regular dividend was declared at 37 cents per share, and was accompanied by a supplemental payment of 1 cent per share. The regular dividend annualizes to $1.48 per share and gives a forward yield of 10.7%. Jefferies analyst Matthew Hurwit covers this BDC, and he is impressed by the company's potential to deliver returns. 'We view OBDC as a compelling income investment with a base-case total return driven by a double-digit dividend yield and modest NAV/share growth. In an upside scenario, continued strong credit performance and increased investor recognition could result in multiple expansion (price/NAV moving to a premium), delivering additional capital gains. In a downside scenario, a material economic downturn could pressure portfolio companies and valuations; however, OBDC's conservative portfolio (83% senior secured loans) and low non-accruals should help mitigate losses. Overall, OBDC's large scale, prudent underwriting, and support from Blue Owl's platform underpin a favorable risk-adjusted return profile for income-focused investors,' Hurwit opined. Hurwit goes on to put a Buy rating on OBDC shares, and his $16 price target implies a one-year upside potential of 15%. Add in the regular dividend yield, and this stock's total one-year return may reach as high as 25.7%. Overall, OBDC has a Strong Buy consensus rating from the Street's analysts, based on 8 recent reviews that include 6 Buys and 2 Holds. The shares are priced at $13.89, and their $15.72 average price target implies 13% upside potential. (See OBDC stock forecast) Apollo Commercial Real Estate (ARI) Next up is a REIT, or real estate investment trust. These companies are well-known as dividend champs; dividend payments make a convenient vehicle for compliance with tax regulations to return profits directly to shareholders. Apollo Commercial Real Estate operates in the US and Europe, where it both originates and invests in commercial real estate-related debt investments, including senior mortgages and mezzanine loans. The company's portfolio is collateralized by properties, and as of this past March 31, it had an amortized cost of $7.7 billion. Apollo Commercial Real Estate is externally managed by an indirect subsidiary of the alternative investment manager, Apollo Global Management. The larger global asset manager has invested more than $105 billion into commercial real estate since 2009, and $26 billion of that total was invested on behalf of Apollo Commercial Real Estate. Apollo Commercial Real Estate uses its relationship with the larger asset manager to realize advantages in its business, in sourcing, evaluating, underwriting, and managing its investments in commercial real estate. Apollo Commercial Real Estate's portfolio contains 48 loans, primarily floating-rate and mortgage loans. The weighted average remaining term of the loans is 2.4 years. The portfolio is diverse, with 24% in office space, another 24% in residential properties, and 21% in hotels. Of the remainder, 12% is in retail properties. Geographically, 32% of the portfolio is in the UK and 20% is in New York. The next largest geographic segments of the portfolio are Europe, at 17%, and the American Southeast, at 11%. On the financial side, Apollo Commercial Real Estate last reported results for 1Q25. In that quarter, the company realized a net income attributable to common shareholders of 16 cents per share. The company's distributable earnings per diluted share came to 24 cents. On April 15, the company paid out a common share dividend of 25 cents; the annualized rate of $1 per common share gives a forward yield of 10.4%. This stock has caught the eye of BTIG analyst Tom Catherwood, who notes that the company is agile, and capable of shifting its portfolio stance to meet changing conditions. 'While we have been positive on ARI's platform for some time, we feared that large-scale challenged loans (namely Steinway Tower and a portfolio of hospitals in MA) could require the company to retain additional capital, limiting its ability to consistently originate and grow its loan book. That said, ARI swiftly resolved its MA hospital loan exposure, and given recent sales activity at Steinway, we expect the company to start collecting income on its $288M senior mezz loan on the property in 2Q25. Given a healthier position in Steinway, steady loan origination pipeline, institutional backing from Apollo Global Management, and platform in the UK/Europe (52% of the loan book), we believe ARI is positioned to outperform its peer group during a time of volatility for the US commercial real estate market,' Catherwood explained. Catherwood's comments support his Buy rating on ARI shares, while his $11 price target suggests that ARI will gain 14.70% going forward. With the dividend yield, this stock's total return may reach 16%. (To watch Catherwood's track record, click here) That's one side of the Street. The broader analyst consensus takes a more cautious stance, landing at Hold (i.e., Neutral). Out of 6 recent ratings, there are 2 Buys, 3 Holds, and 1 Sell. With shares trading at $9.59 and an average price target of $9.80, that points to a more muted upside of 2% over the next year. (See ARI stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment. Disclaimer & DisclosureReport an Issue Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
11-05-2025
- Business
- Business Insider
Seeking 10% Dividend Yield? Jefferies and BTIG Suggest 2 Dividend Stocks to Buy
High-yield dividend stocks can be a powerful way to generate steady income – and a few are offering payouts that crush the market average. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Investment firms Jefferies and BTIG have recently pointed to two such names that stand out. Both offer dividend yields approaching 10% – about seven times higher than the S&P 500 average. However, diving into high-yield stocks calls for extra diligence. While they can offer attractive income, they may also come with increased risks, such as potential dividend cuts or underlying business challenges. That's why we turned to the TipRanks database to see whether the rest of Wall Street is backing these picks. Here's what we found. Blue Owl Capital Corporation (OBDC) We're starting with a BDC – short for Business Development Company. These companies step in where traditional banks often won't, offering capital and credit to growing businesses that power the U.S. economy. Blue Owl Capital Corporation (OBDC) is a key player here, providing financing and credit services to the kinds of firms that have long served as the country's economic engine. OBDC is managed by Blue Owl Credit Advisors, an arm of Blue Owl Capital Inc., and it specializes in financing middle-market companies. The firm takes a debt-first approach, with a selective eye toward equity, building a portfolio that now spans 236 businesses with a combined fair value of $17.7 billion. The average investment size is $75 million. Looking at the drill-downs, we find that the company's portfolio is made up mainly of first-lien senior secured loans, at ~76% of the total. Common equity makes up ~12%, and second-lien senior secured loans make up ~5%. Of the total portfolio, 96.5% of the assets are floating rate, and the remainder are fixed. OBDC invests in a wide range of business sectors, and more than half of its investments are in the Southern and Western regions of the US. Financially, the company reported adjusted net investment income of $0.39 per share in Q1 2025. That came in below expectations, missing forecasts by 4 cents. The regular dividend was declared at 37 cents per share, and was accompanied by a supplemental payment of 1 cent per share. The regular dividend annualizes to $1.48 per share and gives a forward yield of 10.7%. Jefferies analyst Matthew Hurwit covers this BDC, and he is impressed by the company's potential to deliver returns. 'We view OBDC as a compelling income investment with a base-case total return driven by a double-digit dividend yield and modest NAV/share growth. In an upside scenario, continued strong credit performance and increased investor recognition could result in multiple expansion (price/NAV moving to a premium), delivering additional capital gains. In a downside scenario, a material economic downturn could pressure portfolio companies and valuations; however, OBDC's conservative portfolio (83% senior secured loans) and low non-accruals should help mitigate losses. Overall, OBDC's large scale, prudent underwriting, and support from Blue Owl's platform underpin a favorable risk-adjusted return profile for income-focused investors,' Hurwit opined. Hurwit goes on to put a Buy rating on OBDC shares, and his $16 price target implies a one-year upside potential of 15%. Add in the regular dividend yield, and this stock's total one-year return may reach as high as 25.7%. Apollo Commercial Real Estate (ARI) Next up is a REIT, or real estate investment trust. These companies are well-known as dividend champs; dividend payments make a convenient vehicle for compliance with tax regulations to return profits directly to shareholders. Apollo Commercial Real Estate operates in the US and Europe, where it both originates and invests in commercial real estate-related debt investments, including senior mortgages and mezzanine loans. The company's portfolio is collateralized by properties, and as of this past March 31, it had an amortized cost of $7.7 billion. Apollo Commercial Real Estate is externally managed by an indirect subsidiary of the alternative investment manager, Apollo Global Management. The larger global asset manager has invested more than $105 billion into commercial real estate since 2009, and $26 billion of that total was invested on behalf of Apollo Commercial Real Estate. Apollo Commercial Real Estate uses its relationship with the larger asset manager to realize advantages in its business, in sourcing, evaluating, underwriting, and managing its investments in commercial real estate. Apollo Commercial Real Estate's portfolio contains 48 loans, primarily floating-rate and mortgage loans. The weighted average remaining term of the loans is 2.4 years. The portfolio is diverse, with 24% in office space, another 24% in residential properties, and 21% in hotels. Of the remainder, 12% is in retail properties. Geographically, 32% of the portfolio is in the UK and 20% is in New York. The next largest geographic segments of the portfolio are Europe, at 17%, and the American Southeast, at 11%. On the financial side, Apollo Commercial Real Estate last reported results for 1Q25. In that quarter, the company realized a net income attributable to common shareholders of 16 cents per share. The company's distributable earnings per diluted share came to 24 cents. On April 15, the company paid out a common share dividend of 25 cents; the annualized rate of $1 per common share gives a forward yield of 10.4%. This stock has caught the eye of BTIG analyst Tom Catherwood, who notes that the company is agile, and capable of shifting its portfolio stance to meet changing conditions. 'While we have been positive on ARI's platform for some time, we feared that large-scale challenged loans (namely Steinway Tower and a portfolio of hospitals in MA) could require the company to retain additional capital, limiting its ability to consistently originate and grow its loan book. That said, ARI swiftly resolved its MA hospital loan exposure, and given recent sales activity at Steinway, we expect the company to start collecting income on its $288M senior mezz loan on the property in 2Q25. Given a healthier position in Steinway, steady loan origination pipeline, institutional backing from Apollo Global Management, and platform in the UK/Europe (52% of the loan book), we believe ARI is positioned to outperform its peer group during a time of volatility for the US commercial real estate market,' Catherwood explained. Catherwood's comments support his Buy rating on ARI shares, while his $11 price target suggests that ARI will gain 14.70% going forward. With the dividend yield, this stock's total return may reach 16%. (To watch Catherwood's track record, click here) That's one side of the Street. The broader analyst consensus takes a more cautious stance, landing at Hold (i.e., Neutral). Out of 6 recent ratings, there are 2 Buys, 3 Holds, and 1 Sell. With shares trading at $9.59 and an average price target of $9.80, that points to a more muted upside of 2% over the next year. (See ARI stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
