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ARI

Apollo Commercial Real Estate Finance, Inc.

ARI

Apollo Commercial Real Estate Finance, Inc. • NYSE
$10.13 ▼ -1.07% (-0.11)
Market Cap $1.41 B
52w High $11.11
52w Low $7.70
Dividend Yield 1.00%
P/E 11.51
Volume 592.09K
Outstanding Shares 138.94M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $167.143M ▼ $6.651M ▼ $50.791M ▲ 30.388% ▲ $0.34 ▲ $169.176M ▲
Q2-2025 $186.76M ▲ $14.917M ▼ $20.739M ▼ 11.105% ▼ $0.12 ▼ $73.863M ▲
Q1-2025 $173.862M ▲ $15.216M ▼ $25.991M ▼ 14.949% ▼ $0.16 ▼ $-81.406M ▼
Q4-2024 $71.714M ▼ $15.966M ▼ $40.652M ▲ 56.686% ▲ $0.27 ▲ $0
Q3-2024 $72.472M $16.348M $-91.549M -126.323% $-0.69 $0

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $245.856M ▲ $9.519B ▼ $7.657B ▼ $1.862B ▲
Q2-2025 $177.794M ▲ $9.817B ▲ $7.971B ▲ $1.846B ▼
Q1-2025 $166.424M ▼ $8.784B ▲ $6.924B ▲ $1.861B ▼
Q4-2024 $317.396M ▲ $8.412B ▼ $6.537B ▼ $1.874B ▲
Q3-2024 $194.864M $9.098B $7.23B $1.868B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $50.791M ▲ $31.738M ▼ $314.146M ▲ $-278.891M ▼ $68.233M ▲ $7.252M ▼
Q2-2025 $20.739M ▼ $63.226M ▲ $-797.701M ▼ $744.47M ▲ $11.199M ▲ $30.73M ▲
Q1-2025 $25.991M ▼ $39.316M ▼ $-457.704M ▼ $266.342M ▲ $-150.972M ▼ $14.449M ▲
Q4-2024 $40.652M ▲ $49.932M ▲ $586.296M ▲ $-513.475M ▼ $123.109M ▲ $3.701M ▲
Q3-2024 $-91.549M $47.236M $206.408M $-235.145M $19.584M $2.301M

Five-Year Company Overview

Income Statement

Income Statement ARI’s revenue has been relatively steady recently, but earnings have become more volatile. After a strong rebound coming out of 2020 and particularly in 2022, profitability has softened, and the latest year shows a loss instead of a profit. This suggests that credit costs, valuation changes, or funding pressures are weighing on results even though overall income from loans has not collapsed. In simple terms, the business is still generating income, but the cost of doing business in today’s commercial real estate and rate environment is hitting the bottom line.

Balance Sheet

Balance Sheet The balance sheet shows a sizable loan portfolio funded largely with debt, which is typical for a mortgage REIT but still means meaningful leverage risk. Total assets have edged down from their peak, and shareholders’ equity has slowly declined, hinting at some pressure from losses, dividends, or portfolio markdowns. Cash on hand is modest compared with the size of the balance sheet, so the company depends on continued access to credit facilities and capital markets. Overall, the structure is workable for this business model but leaves limited room for long, deep stress in commercial real estate without more active balance sheet management.

Cash Flow

Cash Flow Despite earnings volatility, cash generation from operations has been consistently positive and fairly stable over the last several years. Free cash flow has generally stayed positive as well, with only modest spending needs to support the business. This pattern suggests the loan portfolio is still producing a reliable stream of cash, even when reported accounting profits move around. For an income-oriented REIT, this is an important support, though it still has to be balanced against leverage and credit risk.

Competitive Edge

Competitive Edge ARI’s key advantage is its tight link to Apollo Global Management, which gives it access to deal flow, underwriting expertise, and risk management that many smaller peers cannot easily replicate. The firm focuses on a mix of senior loans and other commercial real estate debt, with meaningful exposure to floating-rate loans that can benefit from higher interest rates but also increase stress on borrowers. Its presence in both the U.S. and Europe, and a focus on large, prime markets like New York City, offers scale and diversification but also ties results to a few big, sometimes volatile markets. The capital recycling strategy—selling or resolving older or challenged positions to fund new, higher-yield loans—is a core part of its competitive playbook and a key execution risk to watch.

Innovation and R&D

Innovation and R&D ARI is not a technology innovator in the classic sense; its “innovation” is mostly in how it structures, sources, and manages real estate credit using Apollo’s broader platform. The company benefits from institutional-grade analytics, underwriting tools, and risk frameworks developed by Apollo, even if these are not marketed as standalone technologies. Looking ahead, the biggest innovation angle is likely the increased use of data and analytics in loan selection and monitoring, and potential involvement in financing more sustainable, energy-efficient properties as broader Apollo strategies evolve. Overall, its edge is more about financial engineering and platform advantages than traditional R&D spending.

Summary

ARI is a specialized mortgage REIT tied closely to commercial real estate lending, with a strong sponsor in Apollo but a business model that naturally carries leverage and credit risk. Over the last few years it has grown and then hit a more challenging patch, with recent results swinging to a loss despite steady income from loans. The balance sheet is typical for the sector—heavily financed with debt—while cash generation has remained reasonably steady, which helps support ongoing operations. Its competitive strength comes from Apollo’s backing, diversified loan types, and geographic reach, balanced against exposure to cyclical commercial real estate markets and the need to execute well on capital recycling. The story going forward largely depends on how effectively management navigates credit quality, funding costs, and portfolio reshaping in a still-uncertain property and interest rate environment.

NEWS

October 30, 2025 · 4:15 PM UTC

Apollo Commercial Real Estate Finance, Inc. Reports Third Quarter 2025 Results

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October 7, 2025 · 4:15 PM UTC

Apollo Commercial Real Estate Finance, Inc. Announces Dates for Third Quarter 2025 Earnings Release and Conference Call

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September 9, 2025 · 4:15 PM UTC

Apollo Commercial Real Estate Finance, Inc. Declares Quarterly Common Stock Dividend

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