Apollo Commercial Real Estate Finance (ARI) Q3 2025 earnings summary

Executive summary

• Net income available to common stockholders was $48 million ($0.34 per diluted share) for Q3 2025, with distributable earnings of $42 million ($0.30 per share) and $1 billion in new loan originations, bringing year-to-date originations to $3 billion split between the U.S. and Europe.

• Portfolio carrying value at quarter end was $8.3 billion, with 54% of loans originated post-2022 rate hikes.

• Focus asset sales, notably at 111 West 57th Street, generated $54–$55 million in proceeds, reducing loan basis.

• Robust liquidity maintained, with $312 million at quarter end and access to additional capital, including a new secured borrowing facility in Europe.

• Declared common stock dividends of $0.25 per share, implying a 9.9% dividend yield.

Financial highlights

• GAAP net income for Q3 2025 was $48 million ($0.34 per diluted share); distributable earnings were $42 million ($0.30 per share), with run rate distributable earnings at $32 million ($0.23 per share).

• Book value per share, excluding general CECL allowance and depreciation, was $12.73 at quarter end.

• Weighted average unleveraged yield of the loan portfolio was 7.7%, with 98% of the portfolio in floating rate first mortgages.

• Q3 dividend yield on book value per share was 8.2%.

• Realized gain on litigation settlement with Massachusetts was $17.4 million, increasing book value by $0.13 per share.

Outlook and guidance

• Expect capital rotation out of focus assets to positively impact earnings run rate in Q4 and 2026, with further uplift from resolutions on other focus assets anticipated in the second half of 2026.

• Robust pipeline of loans expected to close before year-end, with monetization of 111 West 57th expected in early 2026 and The Brooke targeted for late Q3 or early Q4 2026.

• Committed $388 million to two new floating-rate first mortgages post quarter-end.