Apollo Commercial Real Estate Finance Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.54%.
Did ARI Beat Earnings? Q4 2025 Results
Apollo Commercial Real Estate Finance delivered a clear beat to close out 2025, posting distributable earnings of $0.26 per diluted share against a consensus estimate of $0.24, a 7.71% positive surprise, while revenue of $73.25 million ran 58.47% ahead of the $46.23 million Wall Street had penciled in and edged 2.1% higher year over year. The quarter's performance was underpinned by strong loan origination activity, with ARI committing $1.30 billion to new first mortgage loans in Q4 alone at weighted-average yields of 7.6% to 7.9%, helping the overall portfolio reach $8.80 billion across 56 loans. Distributable earnings comfortably covered the $0.25 quarterly dividend, a point of particular relevance given ongoing analyst scrutiny of dividend sustainability. Looking ahead, the company's strategic posture shifted materially with the announcement of a definitive agreement to sell its entire loan portfolio to Athene Holding Ltd. at 99.7% of total loan commitments, a transaction that reshapes ARI's investment narrative considerably as the company carries no corporate debt maturities until June 2029.
- Net interest income of $44.1 million in Q4 driven by $159.5 million interest income from commercial mortgage loans
- $1.3 billion in new loan commitments in Q4, $4.4 billion for full year 2025
- Loan repayments and sales of $852 million in Q4, $2.9 billion for full year
- 99% first mortgage portfolio with 7.3% weighted-average unlevered all-in yield
- 96% floating rate loans providing interest rate sensitivity
- Foreign currency translation gains of $99.5 million for full year 2025 vs losses of $37.5 million in 2024
- Brooklyn multifamily REO with 56% of market units leased
Forward Guidance & Outlook
ARI entered into a definitive agreement with Athene Holding Ltd. to sell the company's entire loan portfolio for a purchase price based on 99.7% of total loan commitments. The company has no corporate debt maturities until June 2029. The company also received a full repayment of an $87 million first mortgage subsequent to quarter end.
ARI YoY Financials
ARI Revenue by Segment
ARI Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.