Apollo Investment reports Q3 NII 16c, consensus 15c
The company's net asset value was $6.60 per share as of December 31, 2017, compared to $6.72 as of September 30, 2017. James Zelter, Apollo Investment's CEO, commented, "During the December quarter, we continued to successfully execute on our strategy by repositioning the portfolio into core assets and reducing our funding costs. The significant drivers of the decline in NAV for the quarter include 1) an unrealized mark-to-market loss our oil hedge which protects us against significant declines in the price of oil, partially offset by gains on our oil investment marks, 2) a realized loss associated with the redemption of higher cost debt which has a payback period of approximately one year, and 3) a loss on our investment in Solarplicity Group, among other factors. We are pleased to announce that subsequent to quarter end, we sold a majority of our investment in Solarplicity Group, a non-core asset that we had been actively seeking to exit, and whose exit we believe greatly enhances the quality of our portfolio and meaningfully reduced our non-core assets." Zelter continued, "Additionally, we continued to actively repurchase stock below NAV during the quarter and have continued to do so in the March quarter. Since the inception of the stock repurchase program, we have repurchased approximately $119M or 8.5% of shares outstanding through this shareholder friendly initiative."