Apollo Commercial Real Estate Finance

Apollo Commercial Real Estate Finance (ARI) Q2 2025 Earnings

Reported Jul 29, 2025 at 6:32 PM ET · SEC Source

Q2 25 EPS

$0.26

BEAT +3.83%

Est. $0.25

Q2 25 Revenue

$70.9M

BEAT +46.49%

Est. $48.4M

vs S&P Since Q2 25

-5.1%

TRAILING MARKET

ARI +13.5% vs S&P +18.6%

Market Reaction

Did ARI Beat Earnings? Q2 2025 Results

Apollo Commercial Real Estate Finance delivered a clean beat in Q2 2025, with distributable earnings of $0.26 per diluted share edging past the $0.25 consensus by 3.83%, while revenue of $70.90 million cleared estimates by 46.49% and held essentially… Read more Apollo Commercial Real Estate Finance delivered a clean beat in Q2 2025, with distributable earnings of $0.26 per diluted share edging past the $0.25 consensus by 3.83%, while revenue of $70.90 million cleared estimates by 46.49% and held essentially flat year over year with a 0.1% gain. The headline driver was a surge in new loan originations: ARI committed $1.40 billion to floating-rate first mortgages during the quarter at a weighted-average yield of 8.0%, pushing the commercial mortgage loan book to $8.48 billion and total assets to $9.82 billion, up from $8.41 billion at year-end 2024. The robust redeployment activity, spanning senior care, data centers, luxury multifamily, and European mixed-use assets, underpins management's projection of 30-40% earnings growth in coming quarters. Capital structure improvements add further support, as ARI refinanced near-term corporate debt into a $750 million term loan maturing in 2030, leaving the company with no corporate debt due until June 2029. A $0.25 quarterly dividend was declared, representing a 10.2% annualized yield on the stock's closing price.

Key Takeaways

  • $1.4 billion in new loan commitments in Q2, all floating-rate first mortgages at 8.0% weighted-average yield
  • Loan repayments and sales of $631 million in Q2 enabling capital redeployment
  • Net interest income of $43.1 million from commercial mortgage loan portfolio
  • Brooklyn multifamily development showing strong leasing momentum with residential TCO received
  • Gross add-on fundings of $394 million in Q2
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ARI YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

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ARI Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q1 26
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ARI Revenue by Geography

With YoY comparisons, source: SEC Filings

Q2 25 Q1 26

“We continue to execute on the business plan laid out for ARI. For the first six months of the year, ARI committed $2.0 billion to new loans as we redeploy capital from repayments and the capital generated from managing towards resolution on ARI's focus assets.”

— Stuart Rothstein, Q2 2025 Earnings Press Release