Apollo Commercial Real Estate Finance (ARI) Q1 2026 Earnings
Reported Apr 28, 2026 at 9:11 PM ET · SEC Source
Q1 26 EPS
$0.22
MISS 24.37%
Est. $0.29
Q1 26 Revenue
$58.6M
BEAT +28.87%
Est. $45.5M
vs S&P Since Q1 26
-12.1%
TRAILING MARKET
ARI -6.5% vs S&P +5.6%
Market Reaction
Did ARI Beat Earnings? Q1 2026 Results
Apollo Commercial Real Estate Finance delivered a sharply better-than-expected first quarter, with distributable earnings of $0.22 per share clearing the $0.12 consensus estimate by 83.33% as the commercial mortgage REIT navigated a period of profoun… Read more Apollo Commercial Real Estate Finance delivered a sharply better-than-expected first quarter, with distributable earnings of $0.22 per share clearing the $0.12 consensus estimate by 83.33% as the commercial mortgage REIT navigated a period of profound strategic transition. Revenue of $58.63 million beat the $25.10 million consensus by 133.60%, though it reflected a 68.6% decline from the year-ago period, driven by lower real estate owned operations and net interest income that slipped to $36.07 million from $39.48 million as interest expense climbed to $113.92 million. The defining development of the quarter, and the catalyst reshaping the company's outlook, was the April 24 completion of its entire commercial real estate loan portfolio sale to Athene Holding at 99.7% of total loan commitments, leaving ARI holding approximately $1.30 billion in cash with a dramatically simplified balance sheet anchored by a handful of retained real estate assets. Looking ahead, the board approved a $150 million stock repurchase program, and the company's $0.25 per share dividend implies a 9.0% yield, even as some observers note mixed valuation signals at current price levels.
Key Takeaways
- • Net interest income of $36.1 million driven by $150.0 million in interest income from commercial mortgage loans
- • 99% first mortgage loan portfolio with 93% floating rate exposure
- • Weighted-average unlevered all-in yield of 7.0%
- • Decrease in current expected credit loss allowance of $3.3 million
- • Forward point gains of $3.9 million on foreign currency hedges
- • Loan repayments and sales of $469 million during Q1
ARI Forward Guidance & Outlook
ARI completed the sale of its commercial real estate loan portfolio to Athene Holding Ltd. on April 24, 2026 for a purchase price based on 99.7% of total loan commitments. All foreign currency hedges were unwound and proceeds were used to repay associated secured debt and corporate-level facilities. Post-Asset Sale, the company holds approximately $1.3 billion in cash and retains the Brooklyn Multifamily property, D.C. Hotel, Atlanta Hotel, Massachusetts Healthcare investment, and the Chicago Hotel Loan (carrying value of $42 million, expected to repay after closing). The board approved a new $150 million stock repurchase program. The Series B-1 Preferred Stock becomes optionally redeemable on and after July 15, 2026 at $25.00 per share ($169 million liquidation preference).
ARI YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
ARI Revenue by Segment
With YoY comparisons, source: SEC Filings
ARI Revenue by Geography
With YoY comparisons, source: SEC Filings
ARI Earnings Trends
ARI vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
ARI EPS Trend
Earnings per share: estimate vs actual
ARI Revenue Trend
Quarterly revenue: estimate vs actual
ARI Quarterly Results
4 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 MISS | $0.29 | $0.22 | -24.37% | $58.6M | +28.87% |
| Q4 25 BEAT FY | $0.24 | $0.26 | +7.71% | $73.3M | +58.47% |
| FY Full Year | — | $1.05 | — | $271.6M | — |
| Q3 25 BEAT | $0.25 | $0.30 | +20.77% | $61.6M | +29.09% |
| Q2 25 BEAT | $0.25 | $0.26 | +3.83% | $70.9M | +46.49% |