Apollo Commercial Real Estate Finance(US:ARI)2026-02-11 02:07Financial 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].