Companies /Real Estate

Apollo Commercial Real Estate Finance Inc

NYSE: ARI Reit - Mortgage
$6.91
â–² $0.10 (+1.50%) today
Markets open · 3:00pm ET

Q2 2025 Earnings

Reported Jul 29, 2025, 6:32pm ET · SEC source
$0.26
Beat +3.83%
EPS · est. $0.25
$70.9M
Beat +46.49%
Revenue · est. $48.4M
+7.8%
Beating market
ARI vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−2%−1%0+1%Jul 29Jul 30report 6:32pm ETearnings+0.4%−1.3%
−2%−1%0+1%Jul 29Jul 30earnings+0.4%−1.3%
ARI −1.3%S&P 500 +0.4%
−2%−1%0+1%Jul 29Jul 30report 6:32pm ETearnings+0.9%−1.3%
−2%−1%0+1%Jul 29Jul 30earnings+0.9%−1.3%
ARI −1.3%NASDAQ +0.9%
−2%0+2%Jul 29Aug 6report 6:32pm ETearnings−0.4%+1.5%
−2%0+2%Jul 29Aug 6earnings−0.4%+1.5%
ARI +1.5%S&P 500 −0.4%
−2%0+2%Jul 29Aug 6report 6:32pm ETearnings−0.0%+1.5%
−2%0+2%Jul 29Aug 6earnings−0.0%+1.5%
ARI +1.5%NASDAQ −0.0%
−1.33%
Day of report
−0.52%
Next session
+1.86%
One week
+9.51%
30 days

S&P 500 over the same 30 days: +1.67%.

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 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

“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.”

Apollo Commercial Real Estate Finance CEO, on the earnings call

Forward Guidance & Outlook

ARI continues to execute its business plan of redeploying capital from loan repayments and focus asset resolutions into new originations. Year-to-date, the company has committed $2.0 billion to new loans. The Brooklyn multifamily development project received initial residential TCO in June with final TCO expected in Q4 2025, and strong leasing momentum with move-ins commencing in July. Subsequent to quarter-end, ARI received a full $250 million loan repayment and expects to receive $18 million from a Massachusetts healthcare settlement by August 20, 2025. The company has no corporate debt maturities until June 2029 and added $1.9 billion of financing capacity in 2025.

ARI YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$20.0M$40.0M$60.0M$70.9M$70.9MRevenue$35.8M$20.7MNet Income$32.4M$32.3MOperating Income
$0$20.0M$40.0M$60.0MRevenueNet IncomeOperating Income

ARI Revenue by Segment

Residential Loans
Office Loans
Hotel Loans
Industrial Loans
Data Center Loans
Retail Loans
Other Loans
Mixed Use Loans

ARI Revenue by Geography

United States
United Kingdom$3.1B
Europe$1.2B

Figures from SEC filings and company reports. Not investment advice.