Apollo Commercial Real Estate ( (ARI) ) has released its Q2 earnings. Here is a breakdown of the information Apollo Commercial Real Estate presented to its investors.
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Apollo Commercial Real Estate Finance, Inc. is a real estate investment trust (REIT) that primarily focuses on originating, acquiring, investing in, and managing commercial first mortgage loans, subordinate financings, and other commercial real estate-related debt investments. The company is externally managed by ACREFI Management, LLC, a subsidiary of Apollo Global Management, Inc.
In its latest earnings report for the quarter ended June 30, 2025, Apollo Commercial Real Estate Finance, Inc. reported a net income of $20.7 million, a decrease from $35.8 million in the same quarter of the previous year. The company declared a dividend of $0.25 per share of common stock, down from $0.35 per share in the previous year.
Key financial metrics from the report indicate that the company’s total assets increased to $9.8 billion from $8.4 billion at the end of 2024, driven by a significant rise in commercial mortgage loans. However, net interest income decreased to $43.1 million from $51.8 million in the previous year, reflecting lower interest income from commercial mortgage loans and subordinate loans. Operating expenses also saw a slight decrease, contributing to the overall financial performance.
The company’s management remains focused on maintaining a strong loan portfolio, with a weighted-average risk rating of 3.0, indicating moderate/average risk. The loan portfolio primarily consists of floating rate loans, and the company has made strategic investments in various property types, including residential, office, and hotel sectors, with a significant presence in the United Kingdom and New York City.
Looking ahead, Apollo Commercial Real Estate Finance, Inc. aims to continue its strategic focus on managing its loan portfolio effectively while navigating the challenges posed by the current macroeconomic environment. The company is committed to maintaining its REIT status by distributing at least 90% of its taxable income to stockholders.