Apollo Commercial Real Estate Finance, Inc (ARI) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you, Operator. Good morning and thank you for joining us on the Apollo Commercial Real Estate Finance Second Quarter 2025 Earnings Call. I'm joined today as usual by Scott Wiener, our Chief Investment Officer, and Anastasia Moranova, our Chief Financial Officer. ARI delivered strong performance in the second quarter of 2025 marked by significant progress across originations, portfolio management, and balance sheet optimization. Velocity in loan originations increased as we committed to $1.4 billion of new loans during the quarter, quickly redeploying capital we have received back from both repayments and ARI's focused assets. Year to date, ARI has committed $2 billion to new loans. Repayments in the portfolio continue to track expectations with borrowers making progress on their business loans, having multiple options for refinancing. As evidenced by the second quarter activity, we are confident in our ability to redeploy this capital into newly originated loans and continue to identify attractive opportunities across both the United States and Western Europe. ARI continues to benefit from the breadth of Apollo's real estate credit platform, and the team's robust originations pipeline to access transaction flow that matches capital received from repayments, eliminating cash drag, and enabling ARI to build a diversified loan portfolio. Three of the loans closed in the second quarter were secured by residential properties, continuing ARI's thematic overweight to a sector benefiting from strong secular tailwinds. Loans on residential properties now comprise approximately 25% of ARI's portfolio, representing ARI's largest property type concentration. Importantly, approximately two-thirds of the residential loans in ARI's portfolio have originated over the past 24 m...