Apollo Commercial Real Estate Finance (ARI) Q4 2025 earnings summary

Executive summary

• Announced and entered a definitive agreement to sell the entire loan portfolio to Athene at 99.7% of total loan commitments, with focus shifting to managing and maximizing value from four retained REO assets.

• Net income available to common stockholders was $114 million ($0.81 per diluted share) for 2025 and $26 million ($0.18 per diluted share) for Q4 2025.

• Distributable earnings were $139 million ($0.98 per diluted share) for 2025 and $37 million ($0.26 per diluted share) for Q4.

• Declared $1.00 per share in dividends for 2025, implying a 9.4% yield and 0.98x annual dividend coverage.

• Ended 2025 with $151 million in liquidity and no corporate debt maturities until June 2029.

Financial highlights

• Total loan portfolio stood at $8.8 billion, with a weighted-average unlevered all-in yield of 7.3%.

• 99% of loans are first mortgages and 96% are floating rate.

• Book value per share at year-end was $12.14.

• Q4 distributable earnings per share ($0.26) covered the $0.25 per share dividend.

• Net interest income for 2025 was $166.7 million, with total net revenue of $271.6 million.

Outlook and guidance

• Focus on completing lease-up and stabilization of The Brook, with exit timing dependent on market conditions.

• The sale of the entire loan portfolio to Athene is expected to close, with two loans ($146 million) anticipated to be repaid prior to closing.

• No corporate debt maturities until June 2029, supporting stable capital structure.

• Dividend for Q1 2025 expected at $0.25 per share, subject to board approval; future dividends under review.

• Mayflower hotel expected to see improved net cash flow after cost savings initiatives.