Apollo Commercial Real Estate Finance(ARI) - 2025 Q3 - Quarterly Results

Financial Performance - Net income available to common stockholders was $48 million, or $0.34 per diluted share[7] - Distributable Earnings prior to realized loss on investments were $32 million, or $0.23 per diluted share; total Distributable Earnings were $42 million, or $0.30 per diluted share[7] - The company reported a net income available to common stockholders of $47,723,000 for Q3 2025, compared to a net loss of $94,617,000 in Q3 2024[42] - The diluted earnings per share for Q3 2025 was $0.34, recovering from a loss of $0.69 in Q3 2024[42] - The total operating expenses for the nine months ended September 30, 2025, were $114,522,000, down from $120,627,000 in the same period of 2024[42] Dividends and Shareholder Returns - Declared common stock dividends of $0.25 per share, resulting in a dividend yield of 9.9%[7] - Q3 Dividend Yield on Book Value Per Share was 8.2%[11] Loan Portfolio and Commitments - Total loan portfolio reached $8.3 billion with a weighted-average unlevered all-in yield of 7.7%, consisting of 98% first mortgages and 98% floating rate[7] - Committed $3.0 billion to new loans year-to-date, with $1.0 billion in Q3; loan repayments and sales totaled $2.1 billion year-to-date, including $1.3 billion in Q3[7] - The total senior loan portfolio amounts to $8,189 million, with $1,035 million in unfunded commitments[28] - The residential loan segment totals $2,391 million, with $103 million in unfunded commitments[26] - The office loan segment totals $1,925 million, with $221 million in unfunded commitments[27] - The hotel loan segment totals $1,461 million, with $42 million in unfunded commitments[27] - The industrial loan segment totals $777 million, with $90 million in unfunded commitments[28] - The data centers loan segment totals $445 million, with $407 million in unfunded commitments[28] - The retail loan segment totals $331 million, with $142 million in unfunded commitments[28] - The mixed-use loan segment totals $304 million, with $17 million in unfunded commitments[28] - Committed $388 million to two floating-rate first mortgages subsequent to the quarter[7] Liquidity and Financial Position - Ended the quarter with total liquidity of $312 million, including $259 million in cash and $53 million available leverage on secured debt[7] - Closed a new secured credit facility providing an additional $280 million of borrowing capacity and increased the revolving credit facility borrowing capacity by $115 million[7] - The total assets increased to $9,519,082,000 as of September 30, 2025, from $8,410,000,000 at the end of 2024[41] - The company’s liabilities rose to $7,656,907,000 as of September 30, 2025, compared to $6,530,000,000 at the end of 2024[41] Realized Gains and Losses - The company reported a realized gain of $3.6 million on forward currency contracts in Q3 2025[34] - The net realized loss on investments for Q3 2025 was $7,436,000, compared to a significant loss of $127,512,000 in Q3 2024[42] - The company reported a $41 million held-for-sale corporate note, which was sold during Q3 2025[44] Financial Metrics and Analysis - Distributable Earnings is a key financial measure, with a reconciliation of GAAP net income provided on page 21[44] - Book value per share (BVPS) is calculated as common stockholders' equity divided by shares of common stock outstanding[44] - The company has a weighted average advance rate of approximately 73% across secured debt arrangements[31] - The gross amount of General CECL Allowance is $39 million, impacting the financial results[44] - The analysis incorporates movements in USD, GBP, and EUR benchmark rates, reflecting the company's exposure to currency fluctuations[44] - The company emphasizes the importance of evaluating performance against peers using Distributable Earnings metrics[44] - Amounts and percentages in the report may not foot due to rounding, highlighting the need for precise financial reporting[44] - Other financial changes include adjustments in General CFCL Allowance and realized losses on investments[44] - The analysis assumes the exercise of all extension options, although there is no assurance that these options will be exercised[44]