Apollo Commercial Real Estate Finance, Inc · NYSE:ARI
Apollo Commercial Real Estate Finance — Q2 2025 Earnings Presentation
22 slides from Apollo Commercial Real Estate Finance's earnings presentation, Jul 30, 2025
Slide 1: Q2 2025 Financial Results
Q2 2025 Financial Results Apollo Commercial Real Estate Finance, Inc. July 29, 2025 Unless otherwise noted, information as of June 30, 2025 It should not be assumed that investments made in the future will be profitable or will equal the performance of the investments shown in this document.
Slide 2: Forward Looking Statements and Other Disclosures
Forward Looking Statements and Other Disclosures This presentation may contain forward-looking statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be c
Slide 3: Q2 Summary Results
Q2 Summary Results Net income available to common stockholders of $18 million, or $0.12 per diluted share of common stock Financial Results Distributable Earnings1 of $36 million, or $0.26 per diluted share of common stock Declared common stock dividends of $0.25 per share, which implies a div
Slide 4: Per Share Overview
Per Share Overview Q2 Dividend per share covered Distributable Earnings1 of $0.26 per share Q2 Dividend Yield on Book Value Per Share6 of 8.3% Distributable Earnings Per Share1 Book Value Per Share6 Distributable Earnings per Share 1 BVPS Post-General CECL Allowance & Depreciation Quarterl
Slide 5: Portfolio Activity & REO Overview
Portfolio Activity & REO Overview Q2 Portfolio Activity 1H’25 Portfolio Activity ($ in mm) 5 5 4 8 4,7 4 8 4,7 Update on 111 West 57th Street REO Overview & Update Robust sales activity in Q2: Brooklyn Multifamily Development: Development of a 591-unit, 53-story multifamily tower Nine units cl
Slide 6: Q2 & 1H'25 Loan Origination Highlights
Q2 & 1H’25 Loan Origination Highlights Key Highlights Q2 $1.4 billion 100% 8.0%] 59% 1H’25 $2.0 billion 100% 8.1% 57% New Commitments Floating Rate Weighted Average Weighted Average ] Closed First Mortgages Unlevered All-in Yield3 Loan-to-Value(b) Loan Type Floating-Rate Senior Loan Floating-Rate Se
Slide 7: Q2 & 1H'25 Loan Origination Highlights (cont.)
Q2 & 1H’25 Loan Origination Highlights (cont.) Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Floating-Rate Senior Loan Loan Size(a) $186 million $155 million $65 million Location United Kingdom United Kingdom New York City Luxury Residential-Led Two Pre-Let 113-Unit, Class-A Collater
Slide 8: Loan Portfolio Overview
Loan Portfolio Overview Carrying Value/ W/A Unlevered All-in Yield Loan Position9 Number of Loans on Loan Portfolio3,9,(a) $8.6 billion/53 Loans 98% First Mortgage 7.8% W/A Remaining Fully-Extended W/A Portfolio Risk Rating9 W/A Portfolio Loan-to-Value(b) Term9,10 2.7 Years 3.0 57% Collateral Divers
Slide 9: Loan Portfolio Overview (cont'd)
Loan Portfolio Overview (cont’d) ($ in mm) United New Other Property Type Kingdom York City Europe West Southeast Midwest Other (d) Total7 Residential (a) $616 / 7% $340 / 4% - $327 / 4% $306 / 4% $149 / 2% $388 / 4% $2,127 / 25% Office 842 / 10% 485 / 6% 528 / 6% - - 173 / 2% - 2,028 / 23% Hotel 8
Slide 10: Office Loan Portfolio Overview
Office Loan Portfolio Overview Number of Loans(a) Carrying Value First Mortgage9 W/A Loan-to-Value(b) 10 Loans $2.0 Billion 100% 51% Loans with 3rd Party Largest commitment 100% W/A Risk Rating9 Subordinate Debt leased to credit tenant(c) 2.7 3 Loans $757 million Origination Vintage9 Location9 Fully
Slide 11: Senior Loan Portfolio
Senior Loan Portfolio ($ in mm) Property Origination Amortized Unfunded Construction 3rd Party Fully-extended 10 Residential Type Date Cost Commitments Loan Subordinate Debt Maturity Location Loan 1 Residential 12/2021 $251 $9 02/2027 Various, UK Loan 2 Residential 07/2024 205 - 07/2029 Various, UK
Slide 12: Senior Loan Portfolio (cont.)
Senior Loan Portfolio (cont.) ($ in mm) Property Origination Amortized Unfunded Construction 3rd Party Fully-extended 10 Hotel Type Date Cost Commitments Loan Subordinate Debt Maturity Location Loan 24 Hotel 12/2023 $321 - 12/2028 Various, Europe Loan 25 Hotel 05/2022 200 5 Y 09/2025 Napa Valley, CA
Slide 13: Senior Loan Portfolio (cont.)
Senior Loan Portfolio (cont.) ($ in mm) Property Origination Amortized Unfunded Construction 3rd Party Fully-extended Mixed Use Type Date Cost Commitments Loan Subordinate Debt Maturity 10 Location Loan 45 Mixed Use 05/2025 $162 $10 05/2027 London, UK Loan 46 Mixed Use 03/2022 151 17 03/2029 Brookly
Slide 14: Subordinate Loan & Other Lending Assets Portfolio
Subordinate Loan & Other Lending Assets Portfolio ($ in mm) Property Origination Amortized Unfunded Construction 3rd Party Fully-extended Type Date Cost Commitments Loan Subordinate Debt Maturity 10 Location 13 Manhattan, NY Loan 51 Residential 06/2015 $118 - 11/2025 12,13 Loan 52 Residential 05/202
Slide 15: Capital Structure Overview
Capital Structure Overview Capital Structure Composition Conservative Capital Management Strategy ($ in mm) 10 Secured Debt Arrangements(c) Across 8 Counterparties Secured Debt Arrangements(a),(b),(c) $6,222 (63%) ~73% W/A Available Advance Rate(e) $379 (4%) Debt Related to Real Estate Owned Term Se
Slide 16: Mitigating Foreign Exchange Risk
Mitigating Foreign Exchange Risk We have taken several risk mitigating steps to structure and fund our non-US loan portfolio and associated secured financing facilities to position ARI for fluctuating foreign exchange rates Foreign Exchange Rate Change (Local/USD) % FX Change QoQ % FX Change YoY GBP
Slide 17: Loan Maturities and Future Funding Profile
Loan Maturities and Future Funding Profile Fully-Extended Loan Maturities and Expected Future Fundings by Net Equity4,10,14,15 ($ in mm) $1,000 $441 $402 $430 $363 $78 $16 $4 $0 $0 2025 2026 2027 2028 2029 & Beyond (a) Fully-Extended Maturities (Net Equity)(a) Expected Net Future Fundings Net Intere
Slide 18: Appendix
Appendix Consolidated Balance Sheets Consolidated Statement of Operations Reconciliation of GAAP Net Income to Distributable Earnings 18
Slide 19: Consolidated Balance Sheets
Consolidated Balance Sheets ($ in thousands - except share data) June 30, 2025 December 31, 2024 Assets: Cash and cash equivalents $177,623 $317,396 Commercial mortgage loans, net (a)(b) 8,479,438 6,715,347 Subordinate loans, net (b) 145,472 388,809 Real estate owned, held for investment, net (c) (n
Slide 20: Consolidated Statement of Operations
Consolidated Statement of Operations Three Months Ended June 30, Six Months Ended June 30, ($ in thousands - except share and per share data) 2025 2024 2025 2024 Net interest income: Interest income from commercial mortgage loans $166,691 $179,388 $310,676 $363,104 Interest income from subordinate l
Slide 21: Reconciliation of GAAP Net Income to Distributable Earnings
Reconciliation of GAAP Net Income to Distributable Earnings1 ($ in thousands - except share and per share data) Three Months Ended Distributable Earnings1: June 30, 2025 March 31, 2025 Net income (loss) available to common stockholders: $17,671 $22,923 Adjustments: Equity-based compensation expense
Slide 22: Footnotes
Footnotes 1. Distributable Earnings: Distributable Earnings is a non-GAAP financial measure that we define as net income available to common stockholders, computed in accordance with GAAP, adjusted for (i) equity-based compensation expense (a portion of which may become cash-based upon final vesting
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