Apollo Global Management Reports Fourth Quarter Results

Apollo Global Management Inc., one of the buyers of The Venetian, Palazzo and Venetian Expo, reported record profits on Friday.

In a conference call with investors, Apollo CEO Marc Rowan said the company was “running on all cylinders” and would only go from strength to strength after its Jan. 1 acquisition of Athene Holding Ltd., a retirement services company that issues, reinsures and acquires retirement savings. some products.

But executives did not discuss the pending $6.4 billion acquisition of the assets of Las Vegas Sands Corp. in Las Vegas during the hour-long conference call.

The New York-based private equity firm, founded by real estate investor and former CEO Leon Black, is in the midst of an acquisition after the Nevada Gaming Control Board unanimously recommended approval of the transaction on 2 February. The Nevada Gaming Commission is expected to consider final approval on Thursday.

“2021 has been an exceptional year for Apollo,” Rowan told investors. “We generated record annual distributable profits, supported by record fee-related profits that grew 15% year-over-year despite significant investments in our talented team to seize the massive growth opportunity that lies ahead. offer to us.”

Rowan said the company remains confident in its ability to execute on a strategic vision and financial plan outlined at the company’s October Investor Day.

“Since then, we have demonstrated significant progress on our three key bets, including expanding asset creation, establishing product and distribution capabilities to serve retail investors, and growing our capital solutions,” said Rowan. “Having completed the merger with Athene on January 1, we enter 2022 with great momentum, fully aligned and well positioned to deliver differentiated growth and returns.”

Apollo reported net income of $612.5 million, 91 cents per share, on revenue of $1.195 billion for the quarter that ended Dec. 31. A year earlier, Apollo reported net income of $1.075 billion, $1.80 per share, on revenue of $1.296 billion.

For 2021, Apollo reported net income of $4.268 billion, $7.32 per share, on revenue of $5.952 billion. That compares to net income of $466.8 million, 44 cents per share, on revenue of $2.354 billion in 2020.

Apollo declared a cash dividend of 40 cents per common share for the fourth quarter. The dividend will be paid on February 28 to shareholders of record at the close of business on February 18. Apollo intends to distribute to its common stockholders an annual dividend of $1.60 per common share, with increases based on business growth. , as determined by the Board of Directors.

Many of the details of Apollo’s acquisition of Sands assets were detailed during a two-hour Board of Control hearing last week.

David Sambur, co-head of private equity for Apollo, and Venetian president and chief operating officer George Markantonis, who will be CEO of the new subsidiary operating the property, told regulators that the core of the Venetian’s management team would be retained by Apollo and they expect that all compensation and employee benefit programs will remain.

The company expects meetings and conventions industry operations – a core of The Venetian’s business plan – to strengthen and provide opportunities for growth as business rebounds from the pandemic.

Under the Apollo acquisition agreement, it would pay $1.05 billion in cash and $1.2 billion in vendor financing in the form of a term loan and a guarantee agreement. .

New York-based Vici Properties Inc., a real estate investment trust affiliated with Caesars Entertainment Inc., is paying $4 billion as part of the deal.

Sands exits the Las Vegas market believing his financial future rests on his investments in Macau, where he is the market leader, and Singapore. The company is also focusing on other domestic investments in the United States with prospects in New York, Florida and Texas.

At noon on Friday, Apollo shares, traded on the New York Stock Exchange, fell $1.71, 2.4%, to $67.82 per share in average volume.

The Review-Journal is owned by the family of Dr. Miriam Adelson, majority shareholder of Las Vegas Sands Corp., which operates The Venetian and Palazzo.

This is a developing story. Check back for updates.

Contact Richard N. Velotta at [email protected] or 702-477-3893. To follow @RickVelotta on Twitter.