Apollo Commercial Real Estate Finance, Inc. reports Q2 2025 net income of $0.12 per share; total loan commitments reach $2 billion.
Quiver AI Summary
Apollo Commercial Real Estate Finance, Inc. (ARI) announced its financial results for the second quarter and first half of 2025, reporting a net income of $0.12 per diluted share and distributable earnings of $0.26 per diluted share. CEO Stuart Rothstein highlighted the company's commitment to its business plan, mentioning that $2.0 billion was allocated to new loans in the first half of the year. ARI will hold a conference call on July 30, 2025, to discuss these results further. The company stressed the significance of distributable earnings as a metric for evaluating performance and setting dividends, while noting the potential limitations of this non-GAAP financial measure. Additionally, ARI is managed by ACREFI Management, LLC, a subsidiary of Apollo Global Management. The release also included forward-looking statements regarding various market risks and uncertainties affecting the company’s future performance.
Potential Positives
- Net income attributable to common stockholders per diluted share was reported at $0.12 for the quarter, indicating positive financial performance.
- Distributable Earnings per diluted share of $0.26 for the quarter suggests strong earnings capacity, which is crucial for potential dividend payments.
- The company committed $2.0 billion to new loans in the first six months of 2025, reflecting successful capital deployment and growth opportunities.
Potential Negatives
- Net income attributable to common stockholders per diluted share was only $0.12 for the quarter, which may indicate weaker profitability than expected.
- The reliance on non-GAAP financial measures like Distributable Earnings could lead to confusion among investors regarding the company's actual financial performance.
- Potential concerns regarding the company's ability to maintain dividend distributions given the complexities of its financial reporting and dependence on its board's discretion.
FAQ
What are Apollo Commercial Real Estate Finance's second quarter earnings?
The net income attributable to common stockholders per diluted share for Q2 2025 was $0.12.
How much did ARI commit to new loans in the first half of 2025?
In the first six months of 2025, ARI committed $2.0 billion to new loans.
What is Distributable Earnings according to Apollo ARI?
Distributable Earnings is a non-GAAP financial measure defined as net income available to common stockholders adjusted for specific items.
When is the ARI conference call scheduled?
The conference call to review results is scheduled for July 30, 2025, at 10am ET.
Where can I find the detailed presentation of ARI's financial results?
The detailed presentation of the quarter ended June 30, 2025, is available on ARI's website at www.apollocref.com.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$ARI Insider Trading Activity
$ARI insiders have traded $ARI stock on the open market 4 times in the past 6 months. Of those trades, 0 have been purchases and 4 have been sales.
Here’s a breakdown of recent trading of $ARI stock by insiders over the last 6 months:
- STUART ROTHSTEIN (President & CEO) has made 0 purchases and 2 sales selling 104,148 shares for an estimated $1,032,038.
- CARMENCITA N.M. WHONDER sold 11,000 shares for an estimated $109,522
- MARK C BIDERMAN sold 10,000 shares for an estimated $94,800
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$ARI Hedge Fund Activity
We have seen 112 institutional investors add shares of $ARI stock to their portfolio, and 104 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- KINGSTONE CAPITAL PARTNERS TEXAS, LLC added 25,411,467 shares (+inf%) to their portfolio in Q2 2025, for an estimated $245,983,000
- BALYASNY ASSET MANAGEMENT L.P. added 1,306,175 shares (+inf%) to their portfolio in Q1 2025, for an estimated $12,500,094
- MIRAE ASSET GLOBAL ETFS HOLDINGS LTD. added 877,675 shares (+89.8%) to their portfolio in Q1 2025, for an estimated $8,399,349
- NOMURA HOLDINGS INC removed 863,698 shares (-23.6%) from their portfolio in Q1 2025, for an estimated $8,265,589
- BLACKROCK, INC. removed 555,499 shares (-2.5%) from their portfolio in Q1 2025, for an estimated $5,316,125
- JANE STREET GROUP, LLC added 465,011 shares (+2983.5%) to their portfolio in Q1 2025, for an estimated $4,450,155
- MARSHALL WACE, LLP added 337,816 shares (+305.9%) to their portfolio in Q1 2025, for an estimated $3,232,899
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$ARI Analyst Ratings
Wall Street analysts have issued reports on $ARI in the last several months. We have seen 1 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- Keefe, Bruyette & Woods issued a "Outperform" rating on 04/29/2025
To track analyst ratings and price targets for $ARI, check out Quiver Quantitative's $ARI forecast page.
$ARI Price Targets
Multiple analysts have issued price targets for $ARI recently. We have seen 3 analysts offer price targets for $ARI in the last 6 months, with a median target of $10.5.
Here are some recent targets:
- Douglas Harter from UBS set a target price of $10.5 on 07/15/2025
- Jade Rahmani from Keefe, Bruyette & Woods set a target price of $10.75 on 07/10/2025
- Richard Shane from JP Morgan set a target price of $9.0 on 04/28/2025
Full Release
NEW YORK, July 29, 2025 (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, 2025.
Net income attributable to common stockholders per diluted share of common stock was $0.12 for the quarter ended June 30, 2025. Distributable Earnings per diluted share of common stock (a non-GAAP financial measure defined below) was $0.26 for the quarter ended June 30, 2025.
Commenting on second quarter 2025 performance, Stuart Rothstein, Chief Executive Officer and President of the Company, said: “We continue to execute on the business plan laid out for ARI. For the first six months of the year, ARI committed $2.0 billion to new loans as we redeploy capital from repayments and the capital generated from managing towards resolution on ARI’s focus assets.”
ARI issued a detailed presentation of the Company’s quarter ended June 30, 2025 results, which can be viewed at www.apollocref.com .
Conference Call and Webcast
The Company will hold a conference call to review first quarter results on July 30, 2025 at 10am ET. To register for the call, please use the following link:
https://register-conf.media-server.com/register/BId90d356a730f472ab59dd717370b3c5f
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 net realized loss on investments, 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 net realized loss on investments 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, 2025, the Company recorded no realized losses in the consolidated statement of operations.
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, 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 $785 billion of assets under management at March 31, 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 | |