Core Insights - The article emphasizes the importance of community and education in investment strategies, particularly in high-yield investments with a targeted safe yield of +9% [1]. Group 1: Company Overview - Rida Morwa, a former investment and commercial banker with over 35 years of experience, leads the Investing Group High Dividend Opportunities, focusing on sustainable income through high-yield investments [1]. - The service offers features such as a model portfolio with buy/sell alerts, preferred and baby bond portfolios for conservative investors, and regular market updates [1]. Group 2: Investment Strategy - The investment philosophy centers on the belief that no one should invest alone, promoting a community-driven approach to high-yield investment strategies [1]. - The service closely monitors all positions and issues buy and sell alerts exclusively for its members, indicating a proactive management style [3].

The Brook (Brooklyn, New York) — Rothstein described The Brook as a newly built Class A multifamily tower with 591 residential units and about 20,000 square feet of ground-floor retail. The property was approximately 56% leased across market-rate units and “experiencing strong leasing momentum,” with leasing cited at roughly 20–40 units per month depending on the month. The retail component was 88% leased to Din Tai Fung, with occupancy expected next year. Management expects stabilization later this year an ...

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported distributable earnings of $37 million, or $0.26 per diluted share, compared to $139 million, or $0.98 per diluted share for the full year [4] - GAAP net income available to common stockholders was $26 million, or $0.18 per diluted share for Q4, and $114 million, or $0.81 per diluted share for the full year [4] - The total CECL allowance stood at $383 million at year-end, equating to 418 basis points of the loan portfolio's total amortized cost, down from 457 basis points a year ago [6] Business Line Data and Key Metrics Changes - The company committed $1.3 billion to new loans in Q4, with $1.1 billion funded at close, and completed approximately $200 million of gross add-on fundings for previously closed loans [7] - Loan repayments and sales totaled $852 million in Q4 and $2.9 billion for the full year, reflecting continued portfolio rotation [8] - The loan portfolio increased by approximately $1.6 billion year-over-year on an amortized cost basis, ending the year with a total loan portfolio of approximately $8.8 billion [8] Market Data and Key Metrics Changes - Over 60% of the loan portfolio is now represented by post-2022 origination, indicating a shift in the company's lending strategy [8] - The weighted average unlevered all-in yield of the loan portfolio was 7.3%, with 99% first mortgages and 96% floating rate exposure [8] Company Strategy and Development Direction - The company is focused on improving cash flow and maximizing value at exit for its real estate owned (REO) portfolio, including a newly built Class A multifamily tower in Brooklyn [2] - Management is exploring options to unlock additional value from adjacent land parcels and is implementing cost-saving initiatives at its hotel properties [2][3] - The company is evaluating various strategies for future capital deployment, including potential dissolution or other growth-oriented strategies [12][30] Management's Comments on Operating Environment and Future Outlook - Management received positive feedback from investors regarding efforts to unlock value, but there are questions about future capital strategies [11] - The company is assessing the market environment for potential asset monetization, particularly for The Brook and its hotel properties [19][20] - Management emphasized the importance of creating a sustainable earnings stream that could trade above book value, considering various investment strategies [30] Other Important Information - The company ended the year with $151 million of total liquidity and held over $430 million of unencumbered assets [8][9] - Book value per share was $12.14 at year-end, relatively flat compared to the prior quarter [9] Q&A Session Summary Question: Feedback from investors regarding the transaction value and stock trading - Management noted overwhelmingly positive feedback but acknowledged questions about future capital strategies and the disconnect between book value and stock price [11][12] Question: Marketing of REO assets and timing for monetization - Management indicated that stabilization of The Brook is expected later this year, and the decision to monetize will depend on market conditions [18][19] Question: Dividend policy post-portfolio sale - Management envisions paying a Q1 dividend of $0.25 per share, subject to board approval, and will discuss future dividends as they approach Q2 [25][26] Question: Strategy for creating an entity that trades above book value - Management is considering various strategies, including a focus on earnings streams and potential investments that offer higher returns [30]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported distributable earnings of $37 million, or $0.26 per diluted share, while for the full year, distributable earnings totaled $139 million, or $0.98 per diluted share [4] - GAAP net income available to common stockholders was $26 million, or $0.18 per diluted share for Q4, and $114 million, or $0.81 per diluted share for the full year [4] - The total CECL allowance stood at $383 million at year-end, equating to 418 basis points of the loan portfolio's total amortized cost, down from 457 basis points a year ago [6] Business Line Data and Key Metrics Changes - The company committed $1.3 billion to new loans in Q4, with $1.1 billion funded at close, and completed approximately $200 million of gross add-on fundings for previously closed loans [7] - For the full year, ARI committed $4.4 billion to new loans, with $3.3 billion funded at close and completed about $900 million of gross add-on fundings [7] - Loan repayments and sales totaled $852 million in Q4 and $2.9 billion for the full year, reflecting continued borrower execution and portfolio rotation [8] Market Data and Key Metrics Changes - Over 60% of the loan portfolio is now represented with post-2022 origination, resulting in an overall growth of the loan portfolio, which increased by approximately $1.6 billion year-over-year on an amortized cost basis [8] - The total loan portfolio at year-end was approximately $8.8 billion by amortized cost, with a weighted average unlevered all-in yield of 7.3% [8] - The weighted average loan-to-value ratio is approximately 59% [8] Company Strategy and Development Direction - The company is focused on improving run rate, cash flow, and maximizing value at exit, particularly with its real estate owned (REO) portfolio [1] - Management is evaluating options to unlock additional value from an adjacent owned land parcel related to The Brook [2] - The company is exploring strategies to create more value on vacant sites and is implementing cost savings initiatives at its hotel properties to enhance net cash flow [2][20] Management's Comments on Operating Environment and Future Outlook - Management received overwhelmingly positive feedback from investors regarding efforts to unlock value, but there are questions about future capital strategies [11] - The management is currently evaluating specific ideas for future strategies but has not concluded on any particular path yet [13] - The company is considering the timing of monetizing its REO assets based on market conditions and the stabilization of properties [18] Other Important Information - The company ended the year with $151 million of total liquidity and held over $430 million of unencumbered assets [8][9] - Book value per share was $12.14 at year-end, relatively flat compared to the prior quarter [9] Q&A Session Summary Question: Feedback from investors regarding the transaction value and stock trading - Management noted positive feedback from investors but acknowledged questions about future capital strategies and the disconnect between announced book value and stock price [11][12] Question: Options for future strategies and potential plans - Management indicated that there are specific ideas being evaluated but it is too early to conclude on any particular strategy [13][14] Question: Marketing and monetization of REO assets - Management discussed the lease-up progress of The Brook and the assessment of market conditions for potential monetization [18][19] Question: Dividend plans post-portfolio sale - Management envisions paying a Q1 dividend consistent with previous quarters, subject to board approval, and will discuss future dividends as they approach Q2 [26][27]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported distributable earnings of $37 million, or $0.26 per diluted share, while for the full year, distributable earnings totaled $139 million, or $0.98 per diluted share [4] - GAAP net income available to common stockholders was $26 million, or $0.18 per diluted share for Q4, and $114 million, or $0.81 per diluted share for the full year [4] - The total CECL allowance stood at $383 million at year-end, equating to 418 basis points of the loan portfolio's total amortized cost, down from 457 basis points a year ago [6] Business Line Data and Key Metrics Changes - The company committed $1.3 billion to new loans in Q4, with $1.1 billion funded at close, and completed approximately $200 million of gross add-on fundings for previously closed loans [6] - Loan repayments and sales totaled $852 million in Q4 and $2.9 billion for the full year, reflecting continued portfolio rotation [7] - The loan portfolio increased by approximately $1.6 billion year-over-year on an amortized cost basis, ending the year at approximately $8.8 billion [8] Market Data and Key Metrics Changes - Over 60% of the loan portfolio is now represented by post-2022 origination, indicating a shift in the company's lending strategy [7] - The portfolio has a weighted average unlevered all-in yield of 7.3%, with 99% first mortgages and 96% floating rate exposure [8] Company Strategy and Development Direction - The company is focused on managing its real estate owned portfolio to improve cash flow and maximize value at exit, particularly through leasing and cost-saving initiatives [2][3] - Management is exploring options to unlock additional value from adjacent land parcels and is evaluating strategies for the REO assets [2][18] - The company is considering various strategies for future growth, including potential investments in mezzanine and construction lending, or leveraging Apollo's access to business lines [27][29] Management's Comments on Operating Environment and Future Outlook - Management received positive feedback from investors regarding efforts to unlock value, but there are questions about future capital strategies [11] - The company is currently evaluating specific internal ideas for future strategies, while also engaging with external proposals [13] - Management indicated that the REO portfolio is not critical to the future direction of the company, allowing for independent decisions on asset monetization [20] Other Important Information - The company ended the year with $151 million of total liquidity and held over $430 million of unencumbered assets [8][9] - Book value per share was $12.14 at year-end, relatively flat compared to the prior quarter [9] Q&A Session Summary Question: Feedback from investors regarding the transaction value and stock trading - Management noted overwhelmingly positive feedback but acknowledged questions about future capital strategies and the disconnect between book value and stock price [11][12] Question: Marketing strategy for REO assets and timing for monetization - Management indicated that stabilization of The Brook is expected later this year, and the decision to monetize will depend on market conditions [17][18] Question: Dividend policy post-portfolio sale - Management envisions paying a Q1 dividend of $0.25 per share, subject to board approval, and will discuss future dividends as they approach Q2 [25][26] Question: Strategy for creating an entity that trades above book value - Management is considering various strategies, including a focus on earnings streams and potential investments that offer higher returns [27][29]

Q4 & FY 2025 Financial Results Apollo Commercial Real Estate Finance, Inc. February 10, 2026 Unless otherwise noted, information as of 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. December 31, 2025 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 21 ...

Financial Performance - Net income available to common stockholders for 2025 was $114 million, or $0.81 per diluted share, with Q4 net income at $26 million, or $0.18 per diluted share[7]. - Distributable earnings for 2025 were $139 million, or $0.98 per diluted share, while Q4 distributable earnings were $37 million, or $0.26 per diluted share[7]. - Total net revenue for the year ended December 31, 2025, was $271,589 thousand, down 10.5% from $303,671 thousand in 2024[47]. - Net income available to common stockholders for Q4 2025 was $26,131 thousand, a decrease of 30% compared to $37,584 thousand in Q4 2024[49]. - The company reported a net income (loss) per diluted share of $0.18 for Q4 2025, compared to $0.27 in Q4 2024, reflecting a decline of 33.3%[47]. - Distributable earnings for the year ended December 31, 2025, were $148,695 thousand, significantly up from $61,316 thousand in 2024[49]. - Preferred dividends remained constant at $3,068 thousand for both Q4 2025 and Q4 2024[47]. Dividends - Declared common stock dividends of $1.00 per share in 2025, resulting in a dividend yield of 9.4% and an annual dividend coverage ratio of 0.98x[7]. - The company declared a dividend of $0.25 per share for Q4 2025, unchanged from Q4 2024[47]. Loan Portfolio - Total loan portfolio reached $8.8 billion with a weighted-average unlevered all-in yield of 7.3%, comprising 99% first mortgages and 96% floating rate[7]. - Committed $4.4 billion to new loans in 2025, with $1.3 billion funded in Q4; loan repayments and sales totaled $2.9 billion for the year[7]. - The total senior loan portfolio amounts to $8,751 million, with $1,038 million in unfunded commitments[30]. - The residential loan segment totals $2,252 million, with $103 million in unfunded commitments[27]. - The office loan segment totals $1,951 million, with $281 million in unfunded commitments[29]. - The hotel loan segment totals $1,772 million, with $40 million in unfunded commitments[29]. - The industrial loan segment totals $970 million, with $104 million in unfunded commitments[29]. - The data center loan segment totals $560 million, with $294 million in unfunded commitments[29]. - The retail loan segment totals $295 million, with $142 million in unfunded commitments[30]. - The mixed-use loan segment totals $302 million, with $14 million in unfunded commitments[30]. - The subordinate loan portfolio totals $62 million, with a weighted average maturity of 0.8 years[32]. - The weighted-average risk rating of the loan portfolio was 3.0, with a weighted-average loan-to-value ratio of 59%[19]. Assets and Liabilities - Total assets increased to $9,900,967 thousand in 2025 from $8,411,591 thousand in 2024, representing a growth of 17.7%[45]. - Total liabilities increased to $8,044,877 thousand in 2025 from $6,537,110 thousand in 2024, marking a rise of 23%[45]. - Cash and cash equivalents decreased significantly to $139,825 thousand in 2025 from $317,396 thousand in 2024, a drop of 56%[45]. Other Financial Activities - Ended 2025 with total liquidity of $151 million, including $144 million in cash, and no corporate debt maturities until June 2029[7]. - Entered into a definitive agreement with Athene Holding Ltd. to sell the entire loan portfolio for a purchase price based on 99.7% of total loan commitments[7]. - Recorded a $3.0 million specific CECL allowance on a commercial mortgage loan secured by a hotel property in Chicago, IL, in Q4[7]. - Six contracts closed during Q4 generated approximately $109 million in proceeds, with strong leasing momentum in the Brooklyn multifamily project[13]. - The company has added $1.8 billion of net financing capacity during 2025[35]. - Net interest income for Q4 2025 was $44,102 thousand, up from $43,503 thousand in Q4 2024, a rise of 1.4%[47].

Core Viewpoint - Apollo Commercial Finance (ARI) reported quarterly earnings of $0.26 per share, missing the Zacks Consensus Estimate of $0.27 per share, and down from $0.32 per share a year ago, indicating an earnings surprise of -3.70% [1] Financial Performance - The company posted revenues of $44.1 million for the quarter ended December 2025, missing the Zacks Consensus Estimate by 7.13%, compared to revenues of $43.5 million a year ago [2] - Over the last four quarters, the company has surpassed consensus EPS estimates only once [2] Stock Performance - Apollo Commercial Finance shares have increased by approximately 10.4% since the beginning of the year, outperforming the S&P 500's gain of 1.7% [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.28 on $48.68 million in revenues for the coming quarter and $1.16 on $206.65 million in revenues for the current fiscal year [7] - The estimate revisions trend for Apollo Commercial Finance was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The REIT and Equity Trust industry, to which Apollo Commercial Finance belongs, is currently ranked in the bottom 21% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Market and Economic Conditions - The company operates in a competitive market for investment opportunities, which may limit its ability to acquire desirable target assets or dispose of existing ones [17]. - Recent macroeconomic trends, including inflation and higher interest rates, may adversely affect the company's business and financial condition [24]. - A prolonged economic slowdown or recession could impair the company's assets and harm its operations, particularly if accompanied by declining real estate values [145]. - Recent macroeconomic trends, including inflation and higher interest rates, may adversely affect the company's financial condition and results of operations [148]. Asset and Investment Risks - The company may not achieve its weighted-average all-in yield on its assets, potentially leading to significantly lower future returns than anticipated [21]. - The lack of liquidity of the company's assets may adversely affect its ability to value and sell these assets [22]. - The company is subject to risks related to delinquency, foreclosure, and loss on commercial mortgage loans, which could result in significant losses [135]. - The company may face significant losses related to B Notes and mezzanine loans due to their subordinated nature and the risks associated with borrower defaults [142]. - The company's assets may be concentrated in certain property types or geographic locations, increasing the risk of defaults during downturns [134]. - The company is subject to risks inherent with real estate-related investments, including changes in governmental laws, environmental liabilities, and uninsured property losses [149]. - Foreclosure processes may be lengthy and expensive, potentially resulting in losses if liquidation proceeds are insufficient to recover the cost basis in the loan [140]. - The company has not adopted any limit on investments in non-investment grade debt securities, which carry a higher risk of default [143]. Management and Operational Dependence - The company is dependent on its Manager and key personnel for success, and any changes in this relationship could adversely impact operations [26]. - The investment allocation policy of the Manager may affect the scope of opportunities available to the company, particularly if competing for the same target assets [156]. - Conflicts of interest may arise from the company's relationship with Apollo, potentially resulting in decisions that are not in the best interests of stockholders [155]. - The Management Agreement limits the Manager's liability, meaning the company could face poor performance or losses without recourse against the Manager [160]. - Termination of the Management Agreement without cause is costly, requiring a payment equal to three times the average annual base management fee over the previous 24 months [161]. - The Management Agreement automatically renews annually unless terminated with 180 days' notice, which could hinder the company's business plan if no replacement manager is found [162]. - The company relies on a license agreement with Apollo to use the "Apollo" name, which could be jeopardized if the agreement is terminated [163]. - The base management fee is based on stockholders' equity, which may not incentivize the Manager to maximize risk-adjusted returns, potentially affecting dividend payments and stock price [165]. - The Manager operates under broad investment guidelines, allowing for riskier transactions without prior board approval, which could lead to suboptimal returns [166]. - The company is dependent on the Manager and Apollo's key personnel for success, and their departure could adversely affect investment objectives [168]. - The lack of a policy preventing conflicts of interest may reduce the time the Manager spends on the company's business, impacting management effectiveness [170]. - Reputational issues related to the company, the Manager, or Apollo could negatively affect market price and transaction opportunities [171]. REIT Compliance and Tax Implications - Failure to qualify as a REIT could result in significant tax liabilities, reducing cash available for distribution to stockholders [176]. - To qualify as a REIT, at least 75% of the value of the company's assets must consist of cash, government securities, and qualifying real estate assets [177]. - The company must distribute at least 90% of its REIT taxable income to stockholders annually to avoid U.S. federal corporate income tax on undistributed income [179]. - If the company fails to comply with REIT requirements, it may need to liquidate attractive investments or incur debt, potentially hindering growth [180]. - The company may face tax liabilities that reduce cash flow even if it qualifies as a REIT, including taxes on undistributed income and state or local taxes [181]. - The company believes its leases will be respected as true leases for U.S. federal income tax purposes, which is crucial for meeting REIT gross income tests [187]. - The IRS could challenge the treatment of mezzanine loans and preferred equity investments as debt, which may affect REIT qualification [188]. - The company may need to report taxable income for certain investments that exceed the economic income realized, impacting cash flow [190]. - The company may generate less cash flow than taxable income in a particular year, which could affect its ability to satisfy REIT distribution requirements [191]. - Securitizations could create taxable mortgage pools, leading to increased taxes for stockholders and limitations on future securitizations [192]. - The company may own up to 100% of the stock of one or more Taxable REIT Subsidiaries (TRSs), but no more than 25% of the value of a REIT's assets may consist of stock or securities of TRSs starting from January 1, 2026 [193]. - The company is required to include certain earnings of ACREFI II TRS and ACRE Debt TRS in its income, which may not qualify for the REIT 95% gross income test [195]. - The REIT provisions may limit the company's ability to hedge effectively, potentially increasing the cost of hedging activities due to tax implications on TRS gains [196]. - The company may incur a 100% tax on net income from prohibited transactions, which could limit its ability to engage in certain sales or securitization of mortgage loans [197]. - Adverse legislative or regulatory tax changes could negatively impact the market price of the company's common stock [198]. Asset Sale Considerations - The company faces uncertainty and contractual restrictions related to the pending Asset Sale, which could disrupt its business operations [201]. - Significant transaction costs and fees may be incurred if the Asset Sale is not consummated, adversely affecting the company's financial condition [209]. - The Purchase Agreement includes provisions that may discourage competing acquisition proposals, potentially limiting strategic options [203]. - The company has limited ability to adjourn the Special Meeting for stockholder approval of the Asset Sale, which could hinder the approval process [212]. - Uncertainty regarding the use of proceeds from the Asset Sale may negatively impact the value and liquidity of the company's common stock [213].