Apollo Commercial Real Estate (NYSE: ARI) posts Q2 loss after major loan portfolio sale
Rhea-AI Filing Summary
Apollo Commercial Real Estate Finance, Inc. reported second-quarter 2026 net income available to common stockholders of $22.7 million, or $0.11 per diluted share. Distributable Earnings prior to net realized loss on investments and loss on extinguishment of debt were $21 million, or $0.15 per diluted share, while total Distributable Earnings were a loss of $349.1 million, or ($2.62) per share, driven by a large portfolio transaction and related charges.
On April 24, 2026 the company completed the sale of its commercial real estate loan portfolio to Athene Holding Ltd. for a purchase price based on 99.7% of total loan commitments. This led to a $339.1 million net realized loss on investments and a $30.7 million loss on extinguishment of debt as secured and corporate-level facilities were repaid. The company ended the quarter with $1.24 billion of cash, debt only on its Brooklyn multifamily construction financing, and total common equity book value of about $1.1 billion or $8.47 per share.
The board declared common stock dividends of $3.75 per share for the quarter, expected to be largely classified as return of capital, and the company repurchased 8.6 million shares at a weighted-average price of $10.85. After quarter-end, it redeemed all $169 million of 7.25% Series B-1 preferred stock and filed a preliminary proxy to seek stockholder approval for a Plan of Complete Liquidation and Dissolution.
Positive
- $1.24 billion cash balance and repayment of all secured and corporate-level debt provide significant liquidity and a simplified capital structure ahead of the proposed liquidation.
- Redemption of $169 million of 7.25% Series B-1 preferred stock and repurchase of 8.6 million common shares at $10.85 support capital return and reduce ongoing financing costs.
Negative
- Completion of the loan portfolio sale to Athene generated a large $339.1 million net realized loss on investments and a $30.7 million loss on extinguishment of debt.
- Quarterly Distributable Earnings were a loss of $349.1 million, or ($2.62) per share, and book value per share declined to $8.47 after a $3.75 per share dividend.
Filing Explained
Post-sale, four REO properties remain alongside cash and REO debt; dissolution still requires a stockholder vote.
The August 10 Form 8-K furnishes second-quarter results and, following the completed loan-portfolio sale, reports four remaining real-estate-owned properties with
This leaves the disclosed post-sale asset base centered on property holdings and cash, with remaining real-estate debt attached to that portfolio rather than to the sold loans.
Distributable Earnings is the company’s non-GAAP measure that adjusts GAAP net income for specified items, including unrealized gains and losses, depreciation, foreign-currency items, and credit-loss provisions. The filing presents it as a supplemental performance and dividend input, while stating that it is not a substitute for GAAP net income or a GAAP liquidity measure.
The preliminary proxy remains a proposal for a special-meeting vote on dissolution, liquidation, and winding up; this filing reports neither approval nor completion of those steps.
8-K Event Classification
Key Figures
Key Terms
Distributable Earnings financial
current expected credit losses financial
loss on extinguishment of debt financial
real estate owned financial
Plan of Complete Liquidation and Dissolution regulatory
Series B-1 Cumulative Redeemable Perpetual Preferred Stock financial
Earnings Snapshot
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FAQ
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Emerging Growth Company
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| Item 2.02 | Results of Operations and Financial Condition. |
On August 10, 2026, Apollo Commercial Real Estate Finance, Inc. (the “Company”) issued a summary press release and a detailed presentation announcing its financial results for the quarter ended June 30, 2026. A copy of the summary press release and the detailed presentation are attached as Exhibit 99.1 and Exhibit 99.2, respectively, hereto and incorporated herein by reference.
The information in Item 2.02 of this Current Report, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, unless it is specifically incorporated by reference therein.
| Item 9.01 | Financial Statements and Exhibits. |
| (d) | Exhibits. |
| Exhibit No. | Description | |
| 99.1 | Summary press release dated August 10, 2026 | |
| 99.2 | Financial results presentation dated August 10, 2026 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Apollo Commercial Real Estate Finance, Inc. | ||
| By: | /s/ Stuart A. Rothstein | |
| Name: Stuart A. Rothstein | ||
| Title: President and Chief Executive Officer | ||
Date: August 10, 2026
Exhibit 99.1
| CONTACT: | Hilary Ginsberg | |||
| Investor Relations | ||||
| (212) 822-0767 |
APOLLO COMMERCIAL REAL ESTATE FINANCE, INC.
REPORTS SECOND QUARTER 2026 RESULTS
New York, NY, August 10, 2026 – 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 $0.11 for the quarter ended June 30, 2026. Distributable Earnings (a non-GAAP financial measure defined below), and Distributable Earnings prior to net realized loss on investments and loss on extinguishment of debt per diluted share of common stock was ($2.62) and $0.15 for the quarter ended June 30, 2026, respectively.
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 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 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 $46 million which was repaid after closing) to Athene Holding Ltd., and a realized loss on the discounted repayment of a commercial mortgage loan.
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 $1.05 trillion of assets under management at June 30, 2026.
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.
Exhibit 99.2 Q2 2026 Financial Results Apollo Commercial Real Estate Finance, Inc. August 10, 2026 Unless otherwise noted, information as of June 30, 2026 It should not be assumed that investments made in the future will be profitable or will equal the performance of the investments shown in this document.
Forward Looking Statements and Other Disclosures This presentation may contain forward-looking statements that are within the meaning of 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 management’s control. These forward-looking statements may include information about possible or assumed future results of Apollo Commercial Real Estate Finance, Inc.’s (the “Company,” “ARI,” “we,” “us” and “our”) business, financial condition, liquidity, results of operations, plans and objectives. When used in this presentation, 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 our industry, real estate values, the debt securities markets or the general economy; ARI’s business and investment strategy; ARI’s operating results; ARI’s ability to obtain and maintain financing arrangements; 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. The forward-looking statements are based on management’s beliefs, assumptions and expectations of future performance, taking into account all information currently available to ARI. Forward-looking statements are not predictions of future events. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to ARI. Some of these factors are described under “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in ARI’s Annual Report on Form 10-K for the year ended December 31, 2025 and other filings with the Securities and Exchange Commission (“SEC”), which are accessible on the SEC’s website at www.sec.gov. If a change occurs, ARI’s business, financial condition, liquidity and results of operations may vary materially from those expressed in ARI’s forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for management to predict those events or how they may affect ARI. Except as required by law, ARI is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This presentation contains information regarding ARI’s financial results that is calculated and presented on the basis of methodologies other than in accordance with accounting principles generally accepted in the United States (“GAAP”), including Distributable Earnings and Distributable Earnings per share. Please refer to page 11 for a definition of “Distributable Earnings” and the reconciliation of the applicable GAAP financial measures to non-GAAP financial measures set forth on page 10. This presentation may contain statistics and other data that in some cases has been obtained from or compiled from information made available by third-party service providers. ARI makes no representation or warranty, expressed or implied, with respect to the accuracy, reasonableness or completeness of such information. Past performance is not indicative nor a guarantee of future returns. Index performance and yield data are shown for illustrative purposes only and have limitations when used for comparison or for other purposes due to, among other matters, volatility, credit or other factors (such as number and types of securities). Indices are unmanaged, do not charge any fees or expenses, assume reinvestment of income and do not employ special investment techniques such as leveraging or short selling. No such index is indicative of the future results of any investment by ARI. Unless the context requires otherwise, references in this presentation to “Apollo” refer to Apollo Global Management, Inc., together with its subsidiaries, and references in this presentation to the “Manager” refer to ACREFI Management, LLC, an indirect subsidiary of Apollo Global Management, Inc. 2
Q2 Summary Results Ø Net income available to common stockholders of $23 million, or $0.11 per diluted share of common stock 1 Ø Distributable Earnings prior to net realized loss on investments and loss on extinguishment of debt of $21 million, or $0.15 per diluted share of Financial Results common stock 1 Ø Distributable Earnings of ($349 million), or ($2.62) per diluted share of common stock (a) Ø Declared common stock dividends of $3.75 per share, of which we expect a substantial portion to be classified as return of capital (b) Ø Completed the sale of the Company’s commercial real estate loan portfolio to Athene Holding Ltd. (“Athene”) for a purchase price based on 99.7% of total (c) loan commitments on April 24th (the “Asset Sale”). – At closing, we recognized a $338 million net realized loss consisting of a $335 million write-off of previously recorded Specific CECL Allowances and ~$3 million net realized loss on investments resulting from the discount on the Asset Sale compared to our loan's cost basis. Asset Sale – In conjunction with closing, we fully repaid all associated secured debt and corporate-level facilities using a portion of the proceeds from the Asset Sale. & We recognized a loss on extinguishment of debt of ~$31 million due to the write-off of unamortized original issue discounts and deferred financing Portfolio Activity costs upon repayment. As of June 30, 2026, the only remaining outstanding debt is construction financing on the Brooklyn Multifamily property. – All foreign currency hedges were unwound in connection with the Asset Sale. Ø Our commercial mortgage loan secured by a hotel in Chicago, IL was repaid at a discount. The discounted payoff resulted in a ~$1.5 million reversal of previously recorded Specific CECL Allowance and recognition of a realized loss on investments of ~$1.5 million. Ø Ended the quarter with $1.2 billion of cash Capitalization Ø Repurchased 8.6 million shares of common stock at a w/a price of $10.85 per share, resulting in book value per share accretion of $0.08 & Liquidity (d) Ø Ended the quarter with total common equity book value of $1.1 billion Ø Completed the redemption of all outstanding shares of our 7.25% Series B-1 Cumulative Redeemable Perpetual Preferred Stock on July 15, 2026. The shares were redeemed for the total liquidation preference of $169 million (or $25 per share), plus all accrued and unpaid dividends to, but not including, the redemption date. Following the redemption date, no shares of Series B-1 Preferred Stock remain issued and outstanding. Subsequent Events Ø Filed a preliminary proxy statement with the SEC related to a Special Meeting of Stockholders to consider and vote on a proposal to approve the dissolution of the Company, the liquidation of its assets and the winding up of its business and affairs in accordance with the Plan of Complete Liquidation and Dissolution a) Final tax characteristics of the distribution will not be known until the filing of our Form 1099 in January 2027. b) Excluded loans that were repaid prior to closing as well as a commercial mortgage loan secured by a hotel in Chicago, IL, which was repaid after closing. c) Purchase price for loans with Specific CECL Allowance was based on the loan’s carrying value. 3 d) Reflects book value per share (net of depreciation) of $8.47 multiplied by shares of common stock outstanding (see page 4 for book value per share overview) See footnotes on page 11
2,(a) Book Value Per Share Reconciliation $0.08 $0.15 ($0.24) ($0.08) $12.22 ($2.64) $2.94 prior to ($3.75) Special Dividend Net +$0.06 impact to BVPS attributable to Asset Sale $12.01 $8.47 (b) (c) March 31, 2026 Distributable Share Depreciation Realized Loss CECL Allowance Realized Loss on Common June 30, 2026 Earnings Repurchases & Other on Investments Reversal Extinguishment of Debt Dividend a) Undepreciated book value per share of $12.29 and $8.81, including General CECL Allowance per share of $0.30 in 1Q’26 and none in 2Q’26, respectively. 4 b) Realized loss on investments includes write-off of previously recorded Specific CECL Allowances and net realized loss on investments resulting from the discount on the Asset Sale compared to our loan's cost basis c) Realized loss on extinguishment of debt includes write-off of unamortized original issue discounts and deferred financing costs upon repayment BVPS ($)
Q2 REO Overview & Update Ø REO portfolio consists of four properties with net assets totaling $912 million and net equity of $541 million D.C. Hotel Brooklyn Multifamily Atlanta Hotel Asset Photos ($ in mm) Net Assets $157 $662 $68 (a) - (371) - Debt 3 Net Equity $157 $291 $68 Ø Received a Letter of Intent from a third Ø Repaid $74 million mortgageØ 99% of Market Units leased Property Update party to purchase the Hotel Massachusetts Healthcare Ø Massachusetts Healthcare is an equity method investment in a joint venture with other Apollo-managed entities that owns two hospitals in Massachusetts Ø The net asset balance of $25 million represents our allocation of the net assets of the joint venture a) Construction financing on our Brooklyn Multifamily property has a maximum commitment of $388 million and is presented net of $0.1 million in deferred financing costs 5 See footnotes on page 11
Capital Structure Overview (d) Q2’26 Capital Structure Composition Post Preferred Stock Redemption Capital Structure Composition ($ in mm) ($ in mm) Debt Related to Real Estate Owned Debt Related to Real Estate Owned $372 (23%) $372 (26%) (a) $169 (10%) Preferred Stock (b) (c) Common Equity Book Value Common Equity Book Value $1,086 (74%) $1,086 (67%) Includes Includes $1.2B of cash $1.1B of cash a) Series B-1 Preferred Stock is generally not convertible into or exchangeable for any other property or any other of our securities at the election of the holders. On July 15, 2026, we exercised our option to redeem the shares at a redemption price of $25.00 (equating to $169 million liquidation preference), plus any accrued unpaid dividends to, but not including, the date of the redemption. Following the redemption, no shares of Series B-1 Preferred Stock remained issued and outstanding. b) Reflects book value per share (net of accumulated depreciation) of $8.47 multiplied by shares of common stock outstanding as of June 30, 2026 c) Reflects book value per share (net of accumulated depreciation as of June 30, 2026) of $8.47, without giving pro forma effect to quarter-to-date real estate owned activity and related financing, as well as certain quarterly accruals, multiplied by shares of common 6 stock outstanding as of July 15, 2026 d) As of July 15, 2026
Appendix Consolidated Balance Sheets Consolidated Statement of Operations Reconciliation of GAAP Net Income to Distributable Earnings 7
Consolidated Balance Sheets ($ in thousands - except share data) June 30, 2026 December 31, 2025 Assets: Cash and cash equivalents $1,239,480 $139,825 (a)(b) Commercial mortgage loans, net - 8,712,018 (b) Subordinate loans, net - 62,198 Real estate owned, held for investment, net (net of $43,048 and $34,438 accumulated depreciation in 2026 and 2025, respectively) 856,970 842,947 Other assets 39,854 143,979 Total Assets $2,136,304 $9,900,967 Liabilities and Stockholders' Equity Liabilities: Secured debt arrangements, net - $6,268,550 Senior secured term loans, net - 727,533 Senior secured notes, net - 497,226 Debt related to real estate owned, held for investment, net 371,428 424,703 (c) Accounts payable, accrued expenses and other liabilities 506,577 91,462 Derivative liabilities, net - 26,791 Payable to related party 3,439 8,612 Total Liabilities $881,444 $8,044,877 Stockholders’ Equity: Preferred stock, $0.01 par value, 50,000,000 shares authorized, Series B-1, 6,770,393 shares issued and outstanding ($169,260 liquidation preference) in 2026 and 2025 $68 $68 Common stock, $0.01 par value, 450,000,000 shares authorized, 128,212,093 and 138,943,831 shares issued and outstanding in 2026 and 2025, respectively 1,282 1,389 Additional paid-in-capital 2,581,422 2,704,316 Accumulated deficit (1,327,912) (849,683) Total Stockholders’ Equity $1,254,860 $1,856,090 Total Liabilities and Stockholders’ Equity $2,136,304 $9,900,967 a) Includes carrying value of $8,424,605 pledged as collateral under secured debt arrangements in 2025. 8 b) Net of $376,754 CECL Allowance comprised $38,754 General CECL Allowance and $338,000 Specific CECL Allowance in 2025. c) Includes $5,759 of General CECL Allowance related to unfunded commitments on commercial mortgage loans and subordinate loans, net in 2025.
Consolidated Statement of Operations ($ in thousands - except share and per share data) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net interest income: Interest income from commercial mortgage loans $41,726 $166,691 $191,715 $310,676 Interest income from subordinate loans and other lending assets - 557 - 1,114 Interest expense (33,585) (124,178) (147,507) (229,235) Net interest income $8,141 $43,070 $44,208 $82,555 Revenue from real estate owned operations 36,242 27,832 58,809 54,163 Total net revenue $44,383 $70,902 $103,017 $136,718 Operating expenses: General and administrative expenses (includes equity-based compensation of $3,047 and $6,094 in 2026 and $3,400 and $6,830 in 2025, respectively) (5,810) (6,561) (11,762) (13,213) Management fees to related party (3,556) (8,356) (11,674) (16,920) Operating expenses related to real estate owned (23,081) (21,113) (41,299) (41,880) Depreciation and amortization on real estate owned (4,631) (2,531) (8,612) (4,987) Total operating expenses ($37,078) ($38,561) ($73,347) ($77,000) Other income, net $8,362 $1,943 $9,775 $3,826 Loss from equity method investment (178) (711) (452) (1,400) Decrease (Increase) in current expected credit loss allowance, net 379,224 (3,113) 382,513 (7,121) Foreign currency translation gain 18,920 73,705 1,772 114,263 Loss on foreign currency forward contracts (includes unrealized gains (losses) of ($17,772) and $26,722 in 2026 and ($73,682) and ($115,511) in 2025, respectively) (18,026) (82,139) (1,214) (121,111) Gain on interest rate hedging instruments (includes unrealized (losses) of ($72) and ($246) in 2025) - 65 - 23 Decrease in valuation allowance, loans and other lending assets held for sale - (1,236) - (1,236) Net realized loss on investments (339,087) - (339,087) - Loss on extinguishment of debt (30,714) - (30,714) - Net income before taxes $25,806 $20,855 $52,263 $46,962 Income tax provision (27) (116) (257) (232) Net income $25,779 $20,739 $52,006 $46,730 Preferred dividends (3,068) (3,068) (6,136) (6,136) Net income available to common stockholders $22,711 $17,671 $45,870 $40,594 Net income per basic share of common stock $0.11 $0.12 $0.27 $0.28 Net income per diluted share of common stock $0.11 $0.12 $0.27 $0.28 Basic weighted-average shares of common stock outstanding 131,022,330 138,943,566 135,043,996 138,792,126 Diluted weighted-average shares of common stock outstanding 131,597,073 139,208,860 135,634,057 139,103,947 Dividend declared per share of common stock $3.75 $0.25 $4.00 $0.50 9
1 Reconciliation of GAAP Net Income to Distributable Earnings ($ in thousands - except share and per share data) Three Months Ended 1 June 30, 2026 March 31, 2026 Distributable Earnings : $22,711 $23,159 Net income available to common stockholders: Adjustments: Equity-based compensation expense 3,047 3,047 Loss (gain) on foreign currency forwards 18,026 (16,812) Foreign currency loss (gain), net (18,920) 17,148 Realized losses relating to interest income on foreign currency hedges, net (493) (416) Realized gains relating to forward points on foreign currency hedges, net 1,073 3,864 Depreciation and amortization on real estate owned 4,631 3,981 Decrease in current expected credit loss allowance, net (379,224) (3,289) Net realized loss on investments 339,087 - Loss on extinguishment of debt 30,714 - (2,059) 7,523 Total adjustments 1 $20,652 $30,682 Distributable Earnings prior to net realized loss on investments and loss on extinguishment of debt Net realized loss on investments (339,087) - Loss on extinguishment of debt (30,714) - 1 ($349,149) $30,682 Distributable Earnings: 1 Weighted-average diluted shares – Distributable Earnings Weighted-average diluted shares – GAAP 131,597,073 139,709,831 4 1,705,981 2,060,564 Weighted-average unvested RSUs 1 Weighted-average diluted shares – Distributable Earnings 133,303,053 141,770,395 1 Diluted Distributable Earnings per share of common stock prior to net realized loss on investments and loss on extinguishment of debt $0.15 $0.22 1 Diluted Distributable Earnings per share of common stock ($2.62) $0.22 10 See footnotes on page 11
Footnotes 1. Distributable Earnings: Distributable Earnings is a non-GAAP financial measure that we define 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 on 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 our foreign currency hedges, and (v) provision for current expected credit losses. Please see page 10 for a reconciliation of GAAP net income to Distributable Earnings. Distributable Earnings Prior to Net Realized Loss on Investments and Loss on Extinguishment of Debt: We believe it is useful to our investors to present Distributable Earnings prior to net realized loss on investments and loss on extinguishment of debt to reflect our operating results because (i) our operating results are primarily comprised of earning interest income on our investments net of borrowing and administrative costs, which comprise our ongoing operations and (ii) it has been a useful factor related to our dividend per share because it is one of the considerations when a dividend is determined. We believe that our investors use Distributable Earnings and Distributable Earnings prior to net realized loss on investments and loss on extinguishment of debt, or a comparable supplemental performance measure, to evaluate and compare the performance of our company and our peers. 2. Book value per share of common stock is common stockholders’ equity divided by shares of common stock outstanding. 3. Amounts and percentages may not foot due to rounding. 4. Unvested RSUs are net of incremental shares assumed repurchased under the treasury stock method, if dilutive. For the three months ended June 30, 2026 and March 31, 2026, there were 574,742 and 599,484 incremental shares included, respectively. 11