Apollo Commercial Real Estate Finance, Inc. Reports Second Quarter 2026 Results
Rhea-AI Summary
Apollo Commercial Real Estate Finance (NYSE: ARI) reported second quarter 2026 results, with net income available to common stockholders of $0.11 per diluted share for the quarter ended June 30, 2026. Distributable Earnings, a non-GAAP measure, were ($2.62) per diluted share, while Distributable Earnings prior to net realized loss on investments and loss on extinguishment of debt were $0.15 per diluted share.
According to the company, the negative Distributable Earnings reflect net realized losses recognized in the first half of 2026 in connection with the sale of its commercial real estate loan portfolio (with limited exceptions) to Athene Holding and a discounted repayment of a commercial mortgage loan. ARI emphasizes Distributable Earnings as a key input for dividend decisions as a REIT and notes it is externally managed by an affiliate of Apollo Global Management.
Positive
- Net income of $0.11 per diluted share for Q2 2026
- Distributable Earnings before realized losses of $0.15 per diluted share in Q2 2026
- Completed sale of commercial real estate loan portfolio to Athene Holding during first half of 2026
Negative
- Distributable Earnings of ($2.62) per diluted share in Q2 2026 including realized losses
- Recorded net realized losses on investments and debt extinguishment tied to portfolio sale and discounted loan repayment
News Explained
Distributable Earnings helps inform dividends but does not measure GAAP liquidity, while any payout still requires board authorization.
The release clarifies that Distributable Earnings adjusts GAAP net income for specified unrealized, non-cash and other items, including unrealized investment gains or losses; the company says it should not be treated as a GAAP measure of liquidity.
For the dividend framework, the company states that REIT tax rules generally require annual distributions of at least 90% of REIT taxable income, while any dividend remains subject to board authorization.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 28 | 1Q26 earnings | Positive | -2.9% | Net income and Distributable Earnings were reported without realized losses. |
| Feb 10 | 4Q25 earnings | Positive | -0.3% | Quarterly and annual earnings included realized losses and a litigation settlement gain. |
| Oct 30 | 3Q25 earnings | Positive | -2.0% | ARI reported earnings, originated $1.0 billion in loans, and recorded realized losses. |
| Jul 29 | 2Q25 earnings | Positive | -1.3% | Distributable Earnings and $2.0 billion of first-half loan commitments were reported. |
| Apr 24 | 1Q25 earnings | Positive | +1.3% | ARI reported earnings and deployed $650 million in first-quarter capital. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings releases were followed by negative 24-hour reactions in four of five historical events despite generally positive reported metrics.
Key Terms
distributable earnings financial
non-GAAP financial measure financial
REIT regulatory
unrealized gains (losses) financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
NEW YORK, Aug. 10, 2026 (GLOBE NEWSWIRE) -- Apollo Commercial Real Estate Finance, Inc. (the “Company” or “ARI”) (NYSE: ARI) today reported results for the quarter and six months ended June 30, 2026.
Net income available to common stockholders per diluted share of common stock was
ARI issued a detailed presentation of the Company’s quarter ended June 30, 2026 results, which can be viewed at www.apollocref.com.
Distributable Earnings
“Distributable Earnings,” a non-GAAP financial measure, is defined as net income available to common stockholders, computed in accordance with GAAP, adjusted for (i) equity-based compensation expense (a portion of which may become cash-based upon final vesting and settlement of awards should the holder elect net share settlement to satisfy income tax withholding), (ii) any unrealized gains or losses or other non-cash items (including depreciation and amortization related to real estate owned) included in net income available to common stockholders, (iii) unrealized income from unconsolidated joint ventures, (iv) foreign currency gains (losses), other than (a) realized gains/(losses) related to interest income, and (b) forward point gains/(losses) realized on the Company’s foreign currency hedges, and (v) provision for current expected credit losses.
As a REIT, U.S. federal income tax law generally requires the Company to distribute annually at least
The Company believes it is useful to its investors to also present Distributable Earnings prior to realized loss on investments and realized loss on extinguishment of debt, in applicable periods, to reflect its operating results because (i) the Company’s operating results are primarily comprised of earning interest income on its investments net of borrowing and administrative costs, which comprise the Company’s ongoing operations and (ii) it has been a useful factor related to the Company’s dividend per share because it is one of the considerations when a dividend is determined. The Company believes that its investors use Distributable Earnings and Distributable Earnings prior to realized loss on investments and realized loss on extinguishment of debt or a comparable supplemental performance measure, to evaluate and compare the performance of the Company and its peers.
During the six months ended June 30, 2026, the Company recorded net realized losses on investments and extinguishment of debt in the consolidated statement of operations in connection with the sale of the Company’s commercial real estate loan portfolio (other than loans that were repaid prior to closing and one loan with a principal balance of
A significant limitation associated with Distributable Earnings as a measure of the Company’s financial performance over any period is that it excludes unrealized gains (losses) from investments. In addition, the Company’s presentation of Distributable Earnings may not be comparable to similarly titled measures of other companies, that use different calculations. As a result, Distributable Earnings should not be considered as a substitute for the Company’s GAAP net income as a measure of its financial performance or any measure of its liquidity under GAAP. Distributable Earnings are reduced for realized losses on loans which include losses that management believes are near certain to be realized.
A reconciliation of Distributable Earnings to GAAP net income (loss) available to common stockholders is included in the detailed presentation of the Company’s quarter ended June 30, 2026 results, which can be viewed at www.apollocref.com.
About Apollo Commercial Real Estate Finance, Inc.
Apollo Commercial Real Estate Finance, Inc. (NYSE: ARI) is a real estate investment trust that primarily originates, acquires, invests in and manages performing commercial first mortgage loans, subordinate financings and other commercial real estate-related debt investments. The Company is externally managed and advised by ACREFI Management, LLC, a Delaware limited liability company and an indirect subsidiary of Apollo Global Management, Inc., a high-growth, global alternative asset manager with approximately
Additional information can be found on the Company’s website at www.apollocref.com.
Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company’s control. These forward-looking statements include information about possible or assumed future results of the Company’s business, financial condition, liquidity, results of operations, plans and objectives. When used in this release, the words believe, expect, anticipate, estimate, plan, continue, intend, should, may or similar expressions, are intended to identify forward-looking statements. Statements regarding the following subjects, among others, may be forward-looking: higher interest rates and inflation; market trends in the Company’s industry, real estate values, the debt securities markets or the general economy; the timing and amounts of expected future fundings of unfunded commitments; the return on equity; the yield on investments; risks associated with investing in real estate assets, including changes in business conditions and the general economy; and the exact amount or timing of our sales of assets and liquidating distributions. For a further list and description of such risks and uncertainties, see the reports filed by the Company with the Securities and Exchange Commission. The forward-looking statements, and other risks, uncertainties and factors are based on the Company’s beliefs, assumptions and expectations of its future performance, taking into account all information currently available to the Company. Forward-looking statements are not predictions of future events. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
| CONTACT: | Hilary Ginsberg |
| Investor Relations | |
| (212) 822-0767 |
