Allied Capital Commercial Corp. announces second quarter results.

WASHINGTON--(BUSINESS WIRE)--Aug. 14, 1995--Allied Capital Commercial Corp. (NASDAQ:ALCC) announced second quarter results Monday.

For the three months ended June 30, 1995, net income increased by 21% to $5.5 million, or 41 cents per share, from $4.6 million, or 35 cents per share, for the comparative quarter in 1994. Income before net investment gains was up by 35% over the second quarter of 1994.

For the six months ended June 30, 1995 Allied Capital Commercial Corporation reported earnings of $11.4 million, or 85 cents per share, a 29% increase over earnings of $8.8 million, or 68 cents per share, for the same six month period in 1994. Year to date, income before net investment gains has increased by 39% over last year as the company has continued to leverage its assets and make new investments in commercial small business mortgage loans.

John Scheurer, president, stated, "We are pleased with the continued growth in the portfolio and the resulting increases in interest income and earnings even though we had very few prepayments and, as a result, the level of capital gain income was less than previous quarters."

During the second quarter of 1995, Allied Capital Commercial Corp. invested approximately $33.8 million into new mortgage loans. After repayments, the company increased its total investments by approximately $29 million. "Demand for our type of mortgage loans remains strong, and we are actively pursuing new lending opportunities," said Scheurer. -0-

(in thousands, except per share amounts)
                                       Per                   Per
(Unaudited)              6/30/95      Share     12/31/94    Share(1)
                         -------      -----     --------    -------
Financial Position
 Information
------------------
Total investments in
 mortgage loans         $ 239,783       --     $198,514         --
Total assets              251,732       --      233,555         --
Shareholders' equity      184,393       --      178,839         --
-0-
                           3 mos. ended           3 mos. ended
                                     Per                   Per
                         6/30/95    Share      6/30/94    Share(1)
                         -------    ------     -------    --------
Operating Information
---------------------
Income before net
 investment gains         $ 5,317   $ 0.39      $ 3,946     $ 0.30
Net investment gains          230     0.02          633       0.05
                            -----                  ----
Net income                $ 5,547   $ 0.41      $ 4,579     $ 0.35
                          =======               =======

Actual shares
 outstanding               13,464       --       12,932        --
Weighted avg. shares
 outstanding               13,479       --       13,060        --

Distributions to
 Shareholders
----------------
Regular dividends              --   $ 0.40           --     $ 0.30
-0-

                            6 mos. ended           6 mos. ended
                                      Per                   Per
                         6/30/95     Share       6/30/94    Share(1)
                         -------     ------      -------    --------
Operating Information
---------------------
Income before net
 investment gains         $10,446   $ 0.78       $ 7,506    $ 0.57
Net investment gains          978     0.07         1,347      0.10
                            -----                  -----
Net income               $ 11,424   $ 0.85       $ 8,853    $ 0.68
                         ========                =======

Actual shares
 outstanding               13,464       --        12,829        --
Weighted avg.
 shares outstanding        13,435       --        13,057        --

Distributions to
 Shareholders
----------------
Regular dividends              --   $ 0.78           --     $ 0.57

(1) The weighted average number of shares and share equivalents
outstanding and per share computations for the prior periods presented
have been restated to include the issuance of common stock pursuant to
the company's dividend reinvestment plan in 1995.-0- Quarterly Cash Dividend Increased

At their most recent meeting, the board of directors of Allied Capital Commercial Corp. increased the company's quarterly cash dividend by 2.5% to 41 cents per share. This is the seventh consecutive increase in the company's regular quarterly dividend in as many quarters. The dividend is payable on Sept. 29, 1995 to shareholders of record as of Sept. 15, 1995. -0-

Allied Capital Commercial Corp. is a publicly traded mortgage REIT headquartered in Washington, D.C., traded on the Nasdaq National Market, symbol ALCC. There are a total of 13,470,682 shares outstanding.

The company currently pays a regular quarterly cash dividend of 41 cents per share and for 1994 paid an extra cash distribution of 22 cents per share for a total distribution to shareholders for 1994 of $1.47 per share. A recent stock quote is $17.625 per share and the shares are marginable.

For additional information or a copy of the company's most recent annual report, please contact Allied Capital's Investor Relations Department at 202/331-1112 or fax to 202/659-2053.

CONTACT: Allied Capital, Washington

Suzanne Sparrow, 202/331-1112