Apollo Commercial Real Estate Finance, Inc. Reports Third Quarter 2025 Results

Rhea-AI Summary

Apollo Commercial Real Estate Finance (NYSE: ARI) reported net income attributable to common stockholders of $0.34 per diluted share for Q3 2025. The Company reported Distributable Earnings per diluted share of $0.30, and Distributable Earnings prior to realized loss on investments and realized gain on litigation settlement of $0.23 for the quarter ended September 30, 2025.

ARI originated $1.0 billion of new loans in the quarter and said it is freeing up non-performing capital for redeployment with expected earnings benefits beginning in Q4 2025. The Company recorded realized losses during the nine months ended September 30, 2025 and a realized gain from a litigation settlement. A detailed presentation and a conference call on October 31, 2025 are available via the investor website.

Positive

• $1.0 billion new loan originations in Q3 2025
• Q3 2025 net income of $0.34 per diluted share
• Distributable Earnings of $0.30 per diluted share

Negative

• Recorded realized losses during nine months ended Sept 30, 2025
• Distributable Earnings prior to certain items reduced to $0.23 per diluted share

Insights

Credit and REIT Income Analyst

Quarter shows stable earnings and active origination, with distributable earnings guiding dividend intent.

Net income per diluted share of $0.34 and Distributable Earnings per share of $0.30 indicate the company produced positive core earnings this quarter while reporting $1.0 billion of new loan originations; these facts show ongoing lending activity and an operational earnings base tied to interest income and borrowing costs.

Distributable Earnings exclude unrealized investment gains and the company recorded realized losses (discounted payoff and sale) and a realized litigation settlement gain; this mix limits comparability to GAAP net income and creates timing differences that affect reported distributable cash available for dividends.

Key dependencies include the pace of redeploying capital freed from non-performing assets and the extent to which realized items recur; management expects redeployment benefits to begin in Q4 2025. Watch the conference call on October 31, 2025 for details on redeployment timing, loan vintages, credit performance of recent originations, and any updated dividend commentary over the next few quarters.

NEW YORK, Oct. 30, 2025 (GLOBE NEWSWIRE) -- Apollo Commercial Real Estate Finance, Inc. (the “Company” or “ARI”) (NYSE: ARI) today reported results for the quarter and nine months ended September 30, 2025.

Net income attributable to common stockholders per diluted share of common stock was $0.34 for the quarter ended September 30, 2025. Distributable Earnings (a non-GAAP financial measure defined below), and Distributable Earnings prior to realized loss on investments and realized gain on litigation settlement per diluted share of common stock was $0.30 and $0.23 for the quarter ended September 30, 2025, respectively.

Commenting on third quarter 2025 performance, Stuart Rothstein, Chief Executive Officer and President of the Company, said: “With $1.0 billion of new loan originations during the quarter ARI continued to benefit from the strength of the Apollo real estate credit platform. There was also continued progress in freeing up non-performing capital for redeployment and we expect the resulting benefit to earnings to begin materializing in the fourth quarter.”

ARI issued a detailed presentation of the Company’s quarter ended September 30, 2025 results, which can be viewed at www.apollocref.com.

Conference Call and Webcast
The Company will hold a conference call to review third quarter results on October 31, 2025 at 10am ET. To register for the call, please use the following link:      

https://register-conf.media-server.com/register/BIfd7586302b66496f949a42c77ef14a7e

After you register, you will receive a dial-in number and unique pin. The Company will also post a link in the Stockholders’ section on ARI’s website for a live webcast. For those unable to listen to the live call or webcast, there will be a webcast replay link posted in the Stockholders’ section on ARI’s website approximately two hours after the call.

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 90% of its REIT taxable income, without regard to the deduction for dividends paid and excluding net capital gains, and that the Company pay tax at regular corporate rates to the extent that it annually distributes less than 100% of its net taxable income. Given these requirements and the Company’s belief that dividends are generally one of the principal reasons shareholders invest in a REIT, the Company generally intends over time to pay dividends to its stockholders in an amount equal to its net taxable income, if and to the extent authorized by the Company’s board of directors. Distributable Earnings is a key factor considered by the Company’s board of directors in setting the dividend and as such the Company believes Distributable Earnings is useful to investors.

The Company believes it is useful to its investors to also present Distributable Earnings prior to realized loss on investments and realized gain from litigation settlement, 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 gain from litigation settlement or a comparable supplemental performance measure, to evaluate and compare the performance of the Company and its peers.

During the nine months ended September 30, 2025, the Company recorded realized losses related to the discounted payoff of a subordinate loan secured by a pledge of equity interest in the entity owning an office, and the discounted sale of a promissory note previously recorded as Note receivable, held for sale. In addition, the Company recorded a realized gain related to a litigation settlement of a hospital property taken by eminent domain.

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 September 30, 2025 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 $840 billion of assets under management at June 30, 2025.

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; the ability to borrow to finance assets; the Company’s ability to deploy the proceeds of its capital raises or acquire its target assets; and risks associated with investing in real estate assets, including changes in business conditions and the general economy. 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

FAQ

What did Apollo Commercial Real Estate Finance (ARI) report for Q3 2025 EPS and distributable earnings?

ARI reported $0.34 net income per diluted share and Distributable Earnings of $0.30 per diluted share for Q3 2025.

How much in new loans did ARI originate in Q3 2025 and what is the expected impact?

ARI originated $1.0 billion of new loans in Q3 2025 and expects redeployment of freed non-performing capital to begin benefiting earnings in Q4 2025.

What caused the difference between ARI's Distributable Earnings of $0.30 and $0.23 per share?

The $0.23 figure excludes realized loss on investments and a realized gain from a litigation settlement that affected Distributable Earnings in applicable periods.

When is ARI's Q3 2025 earnings conference call and where can investors access it?

The conference call is scheduled for October 31, 2025 at 10:00 AM ET and will be available via registration and webcast on ARI's investor website.

Did ARI record any material realized gains or losses in 9 months ended Sept 30, 2025?

Yes; ARI recorded realized losses related to a discounted payoff and sale of assets, and a realized gain from a litigation settlement during the nine months ended Sept 30, 2025.