Apollo Commercial Real Estate Finance Inc (ARI) Q3 2025 Earnings Call Highlights: Record Loan …

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• GAAP Net Income: $48 million or $0.34 per diluted share.

• Distributable Earnings: $42 million or $0.30 per share.

• Run Rate Distributable Earnings: $32 million or $0.23 per share.

• Loan Portfolio Carrying Value: $8.3 billion.

• Weighted Average Unlevered Yield: 7.7%.

• New Loan Originations: $1 billion during the quarter; $3 billion year-to-date.

• Repayments and Sales: $1.3 billion during the quarter; $2.1 billion year-to-date.

• Book Value Per Share: $12.73, excluding general CECL allowance and depreciation.

• Liquidity: $312 million.

• Leverage: Reduced from 4.1x to 3.8x quarter-over-quarter.

• CECL Allowance: Total allowance increased slightly to 438 basis points.

Release Date: October 31, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Apollo Commercial Real Estate Finance Inc (NYSE:ARI) is on track for a record year of commercial real estate loan originations, with over $19 billion closed to date.

• ARI committed to an additional $1 billion of new loans during the quarter, bringing year-to-date originations to $3 billion.

• The company has a strong presence in Europe, benefiting from a fragmented lender universe and a less developed securitization market.

• Repayments are tracking expectations, with $1.3 billion of repayments and sales during the quarter, bringing year-to-date repayments to $2.1 billion.

• ARI maintains robust liquidity with $312 million in cash, committed undrawn capacity, and loan proceeds held by the servicer.

• Run rate distributable earnings during the quarter were slightly below the dividend level due to the timing of capital redeployment.

• The company recorded a $1.2 million loss on the sale of a promissory note, which was previously reflected as a note receivable held for sale.

• The weighted average risk rating of the portfolio remained unchanged at 3.0, indicating no improvement in asset quality.

• The general CECL allowance increased by $1 million due to origination activity, reflecting potential credit risk concerns.

• Leverage decreased from 4.1 times to 3.8 times quarter-over-quarter, indicating a reduction in financial flexibility.

Q: Can you provide an update on the timeline for monetizing the Brook and the pacing of future sales at 111 West 57th Street? A: At 111 West 57th Street, we are down to three units, including a quadplex and a penthouse. We expect to finalize sales in the early part of next year. For the Brook, if leasing continues as expected, we aim to bring it to market in late spring or early summer next year, with a transaction closing in late third or early fourth quarter of 2026. – Stuart Rothstein, CEO