Apollo Global Management, Inc. Reports Third Quarter 2025 Results November 4, 2025 Apollo Reports Third Quarter 2025 Results New York, November 4, 2025 – Apollo Global Management, Inc. (NYSE: APO) (together with its consolidated subsidiaries, "Apollo") today reported results for the third quarter ended September 30, 2025. Dividend Apollo Global Management, Inc. has declared a cash dividend of $0.51 per share of its Common Stock for the third quarter ended September 30, 2025. This dividend will be paid on No ...

Portfolio Overview - W P Carey has a large, diversified portfolio comprising 1,662 properties and 373 tenants[25] - The portfolio's square footage totals 1828 million[25] - The annualized base rent (ABR) is $151 billion, with 66% from North America, 34% from Europe, and 1% from other regions[25] - The weighted average lease term (WALT) is 121 years, and the occupancy rate is 970%[25] - Investment grade tenants account for 219% of ABR, and the top 10 tenants contribute 186% of ABR[25] Rent Escalation and Growth - 50% of leases have CPI-linked rent escalations, 47% have fixed escalations, and 4% have other types[25] - The contractual same store ABR growth is 24%[47] Balance Sheet - Total equity stands at $14808 million[71] - Total pro rata debt is $8851 million, resulting in a net debt of $8537 million[71] - Net Debt to Adjusted EBITDA is 59x[71] - Net Debt to Enterprise Value is 366%[71]

Financial Data and Key Metrics Changes - Firm-wide assets under management (AUM) reached $860 billion, with Bernstein Private Wealth at a record high of $153 billion [4][5] - Adjusted earnings per unit for Q3 increased by 12% year-over-year to $0.86, with net revenues at $885 million, a 5% increase compared to the prior year [25][26] - Total performance fees decreased by $6 million to approximately $20 million [25] - Adjusted operating income rose by 15% year-over-year to $303 million, reflecting a strong margin expansion of 290 basis points [28][34] Business Line Data and Key Metrics Changes - Institutional asset management business AUM stands at $351 billion, while the retail platform serves $356 billion [4] - Tax-exempt fixed income saw over $4 billion in inflows, marking 11 consecutive quarters of positive organic growth [6][7] - Private markets generated nearly $3 billion in net inflows, with strong origination for investment-grade corporate and ABS private placements [7] - Active equities experienced over $6 billion in outflows, while structured and defensive strategies attracted inflows [7][13] Market Data and Key Metrics Changes - U.S. equity markets delivered strong returns, with the S&P 500 returning 8.1% in Q3 [11] - Emerging markets outperformed, while global developed equities underperformed compared to the U.S. [12] - The firm is seeing increased inquiries for international equity strategies, particularly from outside the U.S. [49] Company Strategy and Development Direction - The company is focused on expanding its third-party insurance asset management business and has partnered with Fortitude for strategic investments [8][9] - The strategic alliance with Equitable enhances the firm's client-centric asset-light approach, allowing for the scaling of higher-fee private alternative strategies [9] - The firm aims to achieve $90 to $100 billion in private markets AUM by 2027, leveraging existing investment teams and strategic partnerships [24] Management's Comments on Operating Environment and Future Outlook - Management maintains a positive outlook on fixed income, anticipating a reallocation wave as bonds regain diversification value [11] - The firm is optimistic about capturing growth opportunities in Asia, particularly in taxable fixed income [47][61] - Management acknowledges potential volatility in public markets but remains confident in the firm's ability to navigate challenges [43][62] Other Important Information - The firm has successfully expanded its private markets platform to nearly $80 billion, representing a 17% year-over-year growth [22] - The effective tax rate for the third quarter was 6%, in line with full-year guidance [28] Q&A Session Summary Question: Clarification on the insurance opportunity and Ruby Re - Management confirmed that the timing of funding for Reinsurance Group of America has not changed and is proceeding as planned [40] Question: Insights on private credit and credit quality - Management noted competitive environments in private credit but reassured that there is no broader material deterioration in credit quality [42] Question: Update on Asia business and investor reactions - The firm observed improvement in its Asia business, particularly in taxable fixed income, despite external market noise [47] Question: Clarification on capital allocation strategy and buybacks - Management indicated that the light buyback this quarter was due to timing and not related to Equitable [57] Question: Discussion on bond reallocation and performance - Management expressed confidence in benefiting from bond reallocation trends, particularly in Asia [60]

Financial Data and Key Metrics Changes - The company reported a net income of $10.8 million or $0.56 per share for Q3 2025, down from $13.2 million or $0.68 per share in the previous quarter [4][6] - Pre-provision pre-tax revenue (PP&R) increased by 17% from Q2 and 48% year-over-year [6] - Net interest income for Q3 was $38.8 million, up by $1.6 million or 4% from the previous quarter and by $6.6 million or 20% year-over-year [6][7] - Non-interest income accounted for 31% of total revenue in Q3, up 3% from Q2 and 8% year-over-year [6][7] - Non-interest expenses totaled $35.7 million in Q3, down by $804,000 or 2% [7] Business Line Data and Key Metrics Changes - Wealth management revenues increased by 3%, with a 6% rise in asset-based revenues due to market appreciation and the acquisition of $195 million in managed assets [6][7] - Mortgage banking revenues reached $3.5 million, up 15% for the quarter and 22% year-over-year [7] Market Data and Key Metrics Changes - End-of-period assets under administration (AUA) totaled $7.7 billion, an increase of $501 million or 7% [7] - In-market deposits rose by $179 million or 4% from the end of Q2 and by $431 million or 9% year-over-year [7][8] Company Strategy and Development Direction - The company is focused on long-term value creation and has made key investments to drive growth, including the acquisition of Lighthouse Financial Management [5][6] - The hiring of Jim Brown as Senior Executive Vice President and Chief Commercial Banking Officer aims to enhance commercial relationships and integrate services with the wealth division [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current portfolio quality despite elevated provisions for credit losses due to resolved credit exposures [4][6] - The company anticipates low single-digit loan growth for the year, with a healthy pipeline of approximately $180 million [6][37] - Management expects margin expansion of about 5 basis points in Q4 [27] Other Important Information - The company repurchased 237,000 shares at an average price of $27.18 per share, totaling $6.4 million, and an additional 21,000 shares in October [8] - The effective tax rate for the full year is expected to be 22.5% [7] Q&A Session Summary Question: Remaining shared national credits size - The remaining shared national credits amount to about $173 million, split between CNI and commercial real estate [16][48] Question: Change in specific reserves on a credit - The company had to take an additional $6 million charge-off due to reduced recovery expectations from a Chapter 11 situation [17] Question: Confidence in appraisals of office properties - Confidence in appraisals is based on different properties in various markets, with some properties showing leasing momentum [19][20] Question: Client flows in wealth management - The company is no longer disclosing client flows, aligning disclosures with peers [25][26] Question: Loan growth and pipeline outlook - The company expects low single-digit growth for the year, with a healthy pipeline of $180 million [36][38] Question: Future buyback plans - The company has paused buybacks to evaluate capital deployment for growth, with no immediate plans for additional repurchases [40][47]

Financial Data and Key Metrics Changes - The company reported net income of $10.8 million for Q3 2025, a decrease from $13.2 million in the previous quarter, translating to earnings per share of $0.56 compared to $0.68 [4][6] - Pre-provision pre-tax revenue (PPNR) increased by 17% from Q2 and 48% year-over-year [6] - Net interest income for Q3 was $38.8 million, up by $1.6 million (4%) from the previous quarter and by $6.6 million (20%) year-over-year [7] - Non-interest income comprised 31% of total revenue in Q3, up 3% from Q2 and 8% year-over-year [7] - Non-interest expense totaled $35.7 million in Q3, down by $804,000 (2%) [8] Business Line Data and Key Metrics Changes - Wealth Management revenues increased by 3%, with a 6% rise in asset-based revenues due to market appreciation and the acquisition of $195 million in managed assets [7] - Mortgage banking revenues reached $3.5 million, up 15% for the quarter and 22% year-over-year [8] Market Data and Key Metrics Changes - End market deposits rose by $179 million (4%) from the end of Q2 and by $431 million (9%) year-over-year [9] - Total loans decreased by $18 million, while total equity increased to $533 million, up by $6 million from the end of Q2 [9][10] Company Strategy and Development Direction - The company made key investments to drive growth, including an asset purchase from Lighthouse Financial Management, adding approximately $195 million in AUM and expanding the wealth management team [5] - The hiring of Jim Brown as Chief Commercial Banking Officer aims to strengthen commercial relationships and integrate services with the wealth division [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current portfolio quality and the company's long track record of strong credit performance despite elevated provisions for credit losses this quarter [4] - The company anticipates low single-digit loan growth for the year, with a healthy pipeline of approximately $180 million [39] Other Important Information - The company repurchased 237,000 shares at an average price of $27.18 per share, totaling $6.4 million, and an additional 21,000 shares in October [10] - The allowance for credit losses totaled $36.6 million, representing 71 basis points of total loans, with non-performing loan coverage at 261% [12] Q&A Session Summary Question: Remaining Shared National Credits size - The remaining Shared National Credits portfolio is approximately $173 million, split between commercial and industrial (C&I) and commercial real estate (CRE) [16][18] Question: Change in specific reserves on a credit - The change in reserves was due to reduced recovery expectations following a Chapter 11 situation, leading to a significant loss [19] Question: Confidence in appraisals of office properties - Confidence in appraisals is based on different properties in various markets, with some properties showing leasing momentum [24] Question: Client flows in wealth management - The company is no longer disclosing client flows in wealth management to align with peers [31] Question: Margin expectations - The company expects margin expansion of approximately five basis points in Q4 [32] Question: Loan growth and pipeline - The company anticipates low single-digit growth for the year, with a healthy pipeline of $180 million [39] Question: Buyback plans - The company has paused share repurchases to evaluate capital levels for growth opportunities [45][53]

Core Insights - A 62-year-old man reported that his 64-year-old wife prefers to keep $75,000 in cash at home due to a lack of trust in banks, despite their combined assets nearing $1 million [1][4] - The wife's mistrust in financial institutions stems from her experience managing her late father's estate, which involved extensive scrutiny of financial records [2][3] Financial Stability and Concerns - The couple is financially stable, with no debts other than a $102,000 mortgage, yet the wife insists on keeping a large sum of cash for comfort [4] - Co-host George Kamel highlighted that the underlying issue is the fear associated with financial institutions rather than the actual money involved [4] Recommendations from Financial Experts - Co-host Jade Warshaw suggested that the wife's concerns are rooted in inadequate estate planning rather than actual bank risks, recommending the creation of wills or trusts [6] - Kamel warned that keeping large amounts of cash at home poses greater risks, such as theft, natural disasters, or inflation diminishing its value [6] - To address both comfort and safety, Warshaw proposed a compromise of splitting the cash, with half in a high-yield savings account and the other half secured at home [7]

Summary of Rithm Capital (NYSE:RITM) M&A Announcement Company and Industry - **Company**: Rithm Capital (formerly New Residential) - **Industry**: Commercial Real Estate, specifically focusing on office properties Key Points and Arguments 1. **Acquisition Announcement**: Rithm Capital announced the acquisition of Paramount Group Inc. for $1.6 billion, equating to $6.60 per share, which is considered a significant opportunity to acquire high-quality assets at a discount to book value [3][8][9] 2. **Market Timing**: The acquisition is viewed as timely due to the anticipated recovery in the office market, with demand for Class A office space increasing as people return to work [3][4][10] 3. **Financial Metrics**: - The acquisition price represents approximately 30% of the replacement cost of the assets and 40% below pre-COVID valuation levels [4][9] - Rithm expects to have $2.5-3 billion in cash and liquidity at closing, with $490 million of cash from Paramount's balance sheet contributing to the purchase [5][9] 4. **Investment Strategy**: The deal is intended to be balance sheet-light, funded primarily through third-party capital and limited partners (LPs), with an expected equity check from Rithm of $300-500 million [4][10][28] 5. **Portfolio Details**: Paramount owns and operates 13 owned and four managed Class A office properties totaling over 13 million square feet, with 85% currently leased [8][15] 6. **Market Recovery Indicators**: - U.S. office leasing volume increased by 15% year-over-year in Q1 2025, although still 10%-20% below pre-COVID levels [16] - Manhattan leasing activity in Q2 2025 was 33% above its five-year quarterly average [16] - San Francisco saw its highest quarterly leasing total since Q2 2019 [16] 7. **Future Growth Potential**: Rithm aims to leverage this acquisition to enhance its asset management business, which currently manages approximately $100 billion in assets [11][12][13] 8. **Expected Returns**: The company projects an internal rate of return (IRR) north of 20% and a multiple of invested capital (MOIC) of 1.5 to over 2 times in the long term [32][33] Other Important Content 1. **Management and Operations**: Rithm plans to collaborate closely with Paramount's existing management team to enhance operational efficiency and shareholder value [40][41] 2. **Market Dynamics**: The New York and San Francisco markets are highlighted as having limited supply and increasing rents, driven by a return to office work and a lack of new construction [42][43] 3. **Strategic Partnerships**: Rithm has established partnerships with Green Barn Investment Group and other financial institutions to facilitate the acquisition and future growth [5][8][10] 4. **No Impact on Dividends**: The acquisition is not expected to impact Rithm's dividend policy, with announcements anticipated shortly after the acquisition [24][25] This summary encapsulates the critical aspects of Rithm Capital's acquisition of Paramount Group, highlighting the strategic rationale, financial implications, and market context surrounding the transaction.

Core Insights - The company has successfully pivoted towards capital-light businesses and enhanced its asset management capabilities over the past decade, which has proven to be a beneficial strategy [1]. Business Mix - Currently, the company's earnings are well-diversified, with 40% coming from global asset management, approximately one-third from Group Health & Protection businesses, and about 25% from individual life insurance [2].

Core Insights - The article focuses on analyzing Rithm Capital Corp.'s (RITM) recent performance compared to 17 mortgage real estate investment trust (mREIT) peers, highlighting key metrics such as investment composition, leverage, hedging coverage ratio, and economic returns [1][2][3]. Investment Composition and Performance - As of June 30, 2025, RITM's investment portfolio consisted of 20% fixed-rate agency MBS, 0% variable-rate agency MBS, 36% mortgage servicing rights (MSR), and 44% non-agency MBS and other mortgage-related investments [17][19]. - RITM's total MSR sub-portfolio had an unpaid principal balance of $865 billion, reflecting a significant increase from $648 billion a year prior, largely due to acquisitions [37][38]. Leverage and Hedging - RITM's on-balance sheet leverage ratio was 2.5x, with an at-risk leverage ratio of 0.9x as of June 30, 2025, indicating a slight decrease in leverage compared to the previous quarter [19][20]. - The hedging coverage ratio for RITM was 44% as of June 30, 2025, which is geared towards lower mortgage interest rates, allowing the company to maintain stability in its book value (BV) during fluctuating interest rate environments [46][53]. Economic Returns - RITM achieved a trailing 24-month economic return of 20.97%, outperforming its mREIT peers, which averaged negative returns across various classifications [51][52]. - The company's BV increased by 2.58% from Q1 to Q2 2025, supported by a quarterly dividend of $0.25 per share, resulting in an economic return of 4.60% for the quarter [20][21]. Valuation and Market Position - As of September 5, 2025, RITM's stock price was $12.62, trading at a 2.55% discount to the estimated current BV of $12.95, suggesting a slightly undervalued position compared to peers [48][49]. - RITM's diversified investment strategy, including MSR and various mortgage-related assets, positions it favorably for risk-adjusted returns across different interest rate scenarios [56][57].

Core Viewpoint - RLJ Lodging Trust reported strong adjusted FFO results for Q2 2025, significantly exceeding analyst expectations, despite a slight decline in revenue and hotel operating metrics compared to the previous year [1][4]. Financial Performance - Adjusted FFO per diluted share was $0.48, surpassing the estimate of $0.11, but down 5.9% from $0.51 in Q2 2024 [2]. - Revenue for Q2 2025 was $363.1 million, slightly below the expected $365.3 million and down 1.7% from $369.3 million in Q2 2024 [2]. - Net income decreased to $28.6 million, a 23.2% decline from $37.3 million in the same quarter last year [2]. - Adjusted EBITDA was $104.0 million, down 4.6% from $109.0 million in Q2 2024 [2]. Operational Context - Comparable RevPAR fell 2.1% to $155.08, with comparable occupancy dropping to 75.5% and comparable ADR decreasing by 0.5% [2][5]. - Management cited citywide event schedules and property renovations as factors impacting performance, with expectations of continued effects in the next quarter [5]. Strategic Focus - The company targets high-growth urban markets and emphasizes proactive asset management, property improvements, and maintaining a strong balance sheet [3]. - RLJ is focusing on premium-brand conversions, which have shown double-digit RevPAR growth, with 14% growth for initial conversions and 35% for recent ones [6][10]. Capital Management - RLJ has managed its capital structure effectively, refinancing a $200 million term loan to $300 million and eliminating all 2025 debt maturities [7][8]. - The company maintained a corporate liquidity of $974 million, including $374 million in cash [6]. Future Outlook - Management provided cautious guidance for FY2025, expecting comparable RevPAR growth between -1.0% and 1.0%, with adjusted EBITDA projected at $332.5 million to $362.5 million [13]. - The company anticipates stabilization in group bookings and a more favorable event calendar in Q4 [12][14].