Core Viewpoint - Apollo Commercial Real Estate Finance, Inc. reported a net income of $0.12 per diluted share and distributable earnings of $0.26 per diluted share for the quarter ended June 30, 2025, indicating a solid performance in the first half of the year [1][2]. Financial Performance - For the first six months of 2025, the company committed $2.0 billion to new loans, utilizing capital from repayments and management of focus assets [2]. - The company recorded no realized losses in the consolidated statement of operations during the six months ended June 30, 2025 [7]. Distributable Earnings - Distributable Earnings, a non-GAAP financial measure, is defined as net income available to common stockholders adjusted for various non-cash items and unrealized gains or losses [4][6]. - The company believes that Distributable Earnings is a key factor in determining dividends and is useful for investors to evaluate performance [5][6]. Company Overview - Apollo Commercial Real Estate Finance, Inc. is a real estate investment trust (REIT) that primarily focuses on originating, acquiring, and managing commercial first mortgage loans and related debt investments [10]. - The company is externally managed by ACREFI Management, LLC, a subsidiary of Apollo Global Management, which manages approximately $785 billion in assets as of March 31, 2025 [10].

Investors looking for stocks in the REIT and Equity Trust sector might want to consider either Apollo Commerical Finance (ARI) or Ladder Capital (LADR) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks wi ...

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Financial Performance - Net interest income was $70.8 million[10] - Net income available to common stockholders was $56.8 million, or $0.36 per diluted share[10] - Operating Earnings excluding realized loss on investments and interest rate swap was $59.0 million, or $0.38 per diluted share[10] - A common stock dividend of $0.35 per share was declared for Q2 2020, resulting in a 92% payout ratio[10] Capitalization and Liquidity - Current liquidity stood at $511 million[10] - The debt-to-equity ratio was 1.7x[10] - Unencumbered loan assets were $1.0 billion[10] - The company repurchased 5.5 million shares of common stock for $43.8 million at a weighted average price of $7.96 per share[10] Loan Portfolio - The total loan portfolio amounted to $6.4 billion[10] - The weighted average unlevered all-in yield was 6.7%[10] - 95% of loans have floating interest rates[10] - 90% of US floating-rate loans have in-the-money LIBOR floors[10]

Core Viewpoint - Apollo Commercial Real Estate Finance, Inc. (ARI) will hold a conference call to discuss its second quarter 2025 financial results on July 30, 2025, at 10:00 a.m. Eastern Time, with results being released after market close on July 29, 2025 [1] Company Overview - Apollo Commercial Real Estate Finance, Inc. is a real estate investment trust that focuses on originating, acquiring, investing in, and managing performing commercial first mortgage loans, subordinate financings, and other commercial real estate-related debt investments [3] - The company is externally managed and advised by ACREFI Management, LLC, which is an indirect subsidiary of Apollo Global Management, Inc., a global alternative asset manager with approximately $785 billion in assets under management as of March 31, 2025 [3] Conference Call Registration - Interested parties can register for the conference call through a provided link, after which they will receive a dial-in number and unique pin [2] - A live webcast will also be available on the company's website, with a replay link posted approximately two hours after the call for those unable to attend live [2] Additional Information - Further details about the company can be found on its official website [4]

Portfolio Overview - Total capital deployed reached $26 billion[11] - The loan portfolio consists of $7.7 billion across 48 loans[31] - The weighted average portfolio loan-to-value is 57%[18,31] - 95% of the loans in the portfolio are first mortgages[31] - 95% of the loans in the portfolio are floating-rate[18] Collateral Diversification - Residential properties account for 24% of the portfolio[31] - Office properties also account for 24% of the portfolio[31] - Hotel properties represent 21% of the portfolio[31] - Retail properties comprise 12% of the portfolio[31] - Industrial properties make up 8% of the portfolio[31] Financial Performance & Capital Structure - Equity market capitalization since 2009 is $7.7 billion[13] - The dividend yield is 10.5%[13] based on the Q1 dividend of $0.25 per share annualized[16] - The company has total liquidity of $218 million[18] - The company has conservative leverage at 3.5x debt to equity[18]

Company Performance - AIA (AAGIY) has returned approximately 15.7% year-to-date, significantly outperforming the average return of 5.6% for Finance companies [4] - The Zacks Consensus Estimate for AIA's full-year earnings has increased by 3.1% over the past three months, indicating improved analyst sentiment and earnings outlook [3] Industry Comparison - AIA belongs to the Insurance - Life Insurance industry, which has an average year-to-date return of 1.8%, showing that AIA is performing better than its industry peers [5] - In contrast, Apollo Commercial Finance (ARI), which is part of the REIT and Equity Trust industry, has returned 13.2% year-to-date, while its industry has declined by 4.1% [4][6] Zacks Rank - AIA currently holds a Zacks Rank of 2 (Buy), suggesting it is positioned well for potential outperformance in the near term [3] - Apollo Commercial Finance also has a Zacks Rank of 2 (Buy), reflecting strong earnings estimates with a 61% increase over the past three months [5]

Core Viewpoint - The article compares Apollo Commercial Finance (ARI) and Ladder Capital (LADR) to determine which stock is more attractive to value investors [1] Valuation Metrics - ARI has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to LADR, which has a Zacks Rank of 4 (Sell) [3] - ARI's forward P/E ratio is 9.31, while LADR's forward P/E ratio is 10.74 [5] - ARI has a PEG ratio of 0.24, suggesting it is undervalued relative to its expected earnings growth, whereas LADR has a PEG ratio of 2.16 [5] - ARI's P/B ratio is 0.72, compared to LADR's P/B ratio of 0.87, indicating ARI's market value is lower relative to its book value [6] - Based on these metrics, ARI earns a Value grade of B, while LADR receives a Value grade of D [6] Earnings Outlook - ARI is noted for its improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]

Company Performance - Apollo Commercial Finance (ARI) has returned approximately 10.7% year-to-date, outperforming the average gain of 2.7% in the Finance sector [4] - The Zacks Consensus Estimate for ARI's full-year earnings has increased by 33.8% over the past 90 days, indicating improving analyst sentiment and a positive earnings outlook [3] - ARI is part of the REIT and Equity Trust industry, which has seen a decline of about 4.8% this year, further highlighting ARI's strong performance relative to its peers [5] Industry Context - The Finance sector ranks 3 in the Zacks Sector Rank, which evaluates 16 different sector groups based on the average Zacks Rank of individual stocks [2] - The REIT and Equity Trust industry, where ARI operates, is currently ranked 167 in the Zacks Industry Rank [5] - Another stock in the Finance sector, AIA (AAGIY), has also outperformed the sector with a year-to-date return of 9.9% [4][6]

Group 1 - The credit markets have faced significant challenges due to rapidly rising interest rates, impacting property values and investment opportunities [1] - High Dividend Opportunities have been particularly affected by these market conditions, leading to a reevaluation of investment strategies [1] Group 2 - The Income Method promoted by the company aims to generate strong returns, targeting a yield of 9-10%, which could appeal to investors seeking reliable income streams [3] - A month-long paid trial is being offered at $49, with an additional 5% discount, to attract new investors to the portfolio [3]