Apollo Commercial Real Estate Finance(ARI) - 2025 Q1 - Quarterly Results

Financial Performance - Net income available to common stockholders was $23 million, or $0.16 per diluted share[7]. - Distributable Earnings totaled $33 million, or $0.24 per diluted share, with a declared common stock dividend of $0.25 per share, resulting in an 11.0% dividend yield[7]. - The company reported a net income available to common stockholders of $22,923,000, resulting in a net income per diluted share of $0.16[48]. - Distributable earnings for the three months ended March 31, 2025, were $33,235,000, translating to a diluted distributable earnings per share of $0.24[49]. - The company incurred total operating expenses of $38,439,000 during the same period[48]. - Preferred dividends paid amounted to $3,068,000, impacting the net income available to common stockholders[48]. Loan Portfolio - The total loan portfolio reached $7.7 billion, with a weighted-average unlevered all-in yield of 7.9% and 95% of loans being first mortgages[7]. - The total senior loan portfolio amounts to $7,319 million, with $989 million in unfunded commitments[28]. - The office loan segment has a subtotal of $1,706 million, with $251 million in unfunded commitments[26]. - The hotel loan segment totals $1,604 million, with $29 million in unfunded commitments[27]. - The residential loan segment has a subtotal of $1,477 million, with $27 million in unfunded commitments[27]. - The retail loan segment totals $2,958 million, with $414 million in unfunded commitments[27]. - The industrial loan segment amounts to $543 million, with $235 million in unfunded commitments[28]. - The mixed-use loan segment totals $317 million, with $18 million in unfunded commitments[28]. - The weighted-average risk rating of the loan portfolio is 3.0, with a loan-to-value ratio of 57%[19]. Funding and Liquidity - Committed $650 million to new loans, with $460 million funded at close, and loan repayments and sales amounted to $93 million[7]. - Total liquidity at the end of the quarter was $218 million, including $170 million in cash[7]. - The company funded $994 million across four new originations in Q2 2025, bringing year-to-date fundings to over $1.5 billion[31]. - The company expects net future fundings to be $934,000,000 in 2025, decreasing to $9,000,000 in 2029 and beyond[42]. - The company has a cash and cash equivalents balance of $166,424,000 as of March 31, 2025[46]. Debt and Capital Management - Upsized secured credit facility with JPMorgan by $500 million, increasing total capacity to $2 billion and extending maturity to March 2030[7]. - Closed two new secured credit facilities with an aggregate borrowing capacity of $690 million[7]. - The company has a debt to equity ratio of 3.5x, indicating a conservative capital management strategy[35]. - The foreign loan portfolio is structured to mitigate foreign exchange risk, with 73% of secured debt arrangements in local currency[39]. Revenue and Interest Income - Total net revenue for the three months ended March 31, 2025, was $65,816,000, with net interest income of $39,485,000[48]. - The interest income from commercial mortgage loans was $143,985,000, with an interest expense of $105,057,000[48]. Asset and Liability Overview - Total assets as of March 31, 2025, amounted to $8,784,193,000, while total liabilities were $6,923,585,000[46]. - The expected increase in net interest income sensitivity to benchmark rates is projected at $0.01 for each increase in rates[42].