What is the revenue and EPS growth rate for Apollo Commercial Real Estate Finance year over year?

What guidance did Apollo Commercial Real Estate Finance's management provide for the next earnings period?

What were the key takeaways from Apollo Commercial Real Estate Finance's earnings call?

What were the key takeaways from Apollo Commercial Real Estate Finance’s earnings call?

What does Apollo Commercial Real Estate Finance do and what are its main business segments?

Did Apollo Commercial Real Estate Finance beat or miss consensus estimates last quarter?

What is the market's earnings forecast for Apollo Commercial Real Estate Finance next quarter?

What factors drove the changes in Apollo Commercial Real Estate Finance's revenue and profit?

- **Q2 Loan Originations Surpass $1.4B**: Year-to-date originations reach $2B, with 25% of portfolio in residential properties.
- **Focus Asset Progress**: 111 West 57th reduces basis by $141M; The Brook 500-unit multifamily development 15% leased.
- **Balance Sheet Strength**: $750M Term Loan refinanced, extending maturity to 2029. Liquidity at $208M, book value per share $12.59.
- **European Expansion**: 50% of portfolio in Europe, 18% of originations year-to-date.
- **Earnings Growth Potential**: 30-40% earnings growth from redeploying $300M+ in non-earning assets.
- **Dividend Policy**: Maintains 100% payout ratio, with quarterly reviews.

**【CEO Summary Section】**
- **Strong Q2 Performance**: Committed $1.4 billion in new loans, bringing year-to-date originations to $2 billion. Residential properties now comprise 25% of the portfolio, with 2/3 of these loans originated in the last 24 months.
- **Focus Asset Progress**: 111 West 57th Street generated $170 million in proceeds, reducing ARI's basis. The Brook multifamily development in Brooklyn opened its leasing office, with 15% of market-rate units leased. Liberty Center in Cincinnati is entering the marketing phase.
- **Balance Sheet Optimization**: Refinanced $750 million Term Loan B at SOFR + 3.25%, extending maturities to 2029. This highlights investor confidence and reduces cash drag.
- **European Growth**: 50% of the portfolio is in Europe, with year-to-date originations at 18%. Recent interest rate cuts are driving acquisition activity.

**【CFO Financial Commentary】**
- **Financial Results**: Q2 distributable earnings of $36 million ($0.26 per share), up 8% from Q1. GAAP net income was $18 million ($0.12 per share). Loan portfolio grew to $8.6 billion, with a weighted average unlevered yield of 7.8%.
- **CECL Allowance**: General CECL increased by $3.1 million due to portfolio growth, but no asset-specific allowances were recorded. Total CECL as a percentage of amortized cost decreased to 429 basis points.
- **Liquidity and Borrowing**: Secured $1.4 billion in new credit facilities, ending the quarter with $208 million in liquidity. Book value per share (excluding CECL) was $12.59.
- **Special Proceeds**: Received $18 million from a Massachusetts settlement, which will be redeployed into new loans.

**【Q&A Highlights】**
- **The Brook Update**: Expected to be cash flow positive by early 2026, with potential monetization in Q1-Q2 2026. Discussions ongoing to increase density through adjacent land parcels.
- **Portfolio Growth**: Leverage expected to remain around 4x, with capital redeployment driving 30-40% earnings growth. Non-earning assets (e.g., The Brook) will be converted into earning ones.
- **CRE Market Outlook**: Increased transaction activity in housing, seniors housing, and hotels. Office deals remain limited in ARI's strategy.
- **Dividend Policy**: Plans to maintain dividend payout of ~100% of earnings, with quarterly reviews. No material tax constraints on dividend growth.
- **Seniors Housing Focus**: Driven by demographic trends and supply-demand imbalance, with a focus on private-pay, independent living properties.

Apollo Commercial Real Estate Finance (ARI)-30 Jul 25-2025 Q2 Earnings call transcript

- **Loan Growth Momentum**: $1.5B year-to-date originations, including $700M post-quarter, driven by residential and data center focus.
- **111 West 57th Progress**: Senior loan repaid post-quarter, $127M additional proceeds expected, reducing ARI's exposure.
- **Dividend Support**: Q1 distributable earnings at 96% coverage, confident in FY25 ability to meet dividend run rate.
- **European Expansion**: $4B portfolio with Apollo's London team, hedged against FX risk, targeting non-securitized deals.
- **Capital Deployment**: $1.5B repayments expected FY25, enabling active origination without equity issuance.

**【CEO Opening Remarks】**
- Highlighted macroeconomic risks (tariffs, recession fears) but noted commercial real estate's lagging indicator status.
- Q1 loan originations of $650M, with 3/4 in residential (strong secular tailwinds) and 1 in data centers (pre-leased, on-time delivery focus).
- Year-to-date originations $1.5B, including post-quarter $700M.
- 111 West 57th Street sales momentum: $45M Q1 proceeds, $127M pending post-quarter, reducing ARI's net exposure.
- Confident in 2025 distributable earnings to support current dividend run rate despite Q1 shortfall.

**【CFO Financial Review】**
- Q1 distributable earnings: $33M ($0.24/share), 96% dividend coverage vs. $0.25 quarterly rate.
- Loan portfolio growth to $7.7B (from $7.1B), weighted average yield 7.9%.
- Strong capital deployment: $650M new loans + $73M add-ons, $93M repayments redeployed.
- CECL allowance up $4M to $475M (5.75% of portfolio), reflecting macro caution.
- Debt-to-equity ratio 3.5x (vs. 3.2x prior quarter), liquidity $218M.

**【Q&A Key Themes】**
- **Asset Resolution Progress**: 111 West 57th Street senior loan repaid post-quarter, $127M additional proceeds expected. Liberty Center sale targeted for late 2025.
- **Market Sentiment**: Despite equity volatility, credit markets remain active; $1.5B repayments expected FY25, enabling continued origination pace.
- **European Strategy**: $4B European portfolio driven by Apollo's London-based team, focusing on non-securitized deals (e.g., logistics, data centers). No FX risk due to hedging.
- **Capital Deployment**: FY25 growth funded by repayments and asset resolutions; no equity issuance planned until sector recovers above book value.

Apollo Commercial Real Estate Finance (ARI)-25 Apr 25-2025 Q1 Earnings call transcript

- **Record Origination**: $1.9 billion in 2024, with 30% of portfolio originated in 2023-2024 at higher spreads.
- **Earnings Upside**: redeploying $300M Brooklyn equity could add $0.40-$0.60 per share in 2025.
- **Strong Liquidity**: $380M cash & undrawn capacity, 3.2x debt-to-equity ratio.
- **Growth Catalysts**: $1B+ pipeline for 2025, targeting $7.5-$8B portfolio.
- **Market Recovery**: multifamily, industrial, and UK/Europe leading the charge; office cautiously improving.
- **Risk Management**: stable CECL at $379M, 90%+ leased Liberty Center, and 4 units sold at 111W57.

**【CEO Summary Section】**
- ARI originated $782 million in new loans in Q4 2024, bringing total annual origination to $1.9 billion. 30% of the portfolio was originated in the past 24 months, benefiting from wider spreads and higher rates.
- The company expects capital deployment to accelerate in 2025 as $300 million of equity tied to the Brooklyn multifamily development is redeployed, potentially adding $0.40-$0.60 per share in annual earnings.
- Key nonperforming assets include 111 West 57th Street (4 units under contract) and Liberty Center (90% leased), with potential resolutions in H2 2025.

**【CFO Financial Commentary】**
- Q4 2024 distributable earnings: $45 million ($0.32 per share), with 128% dividend coverage. Full-year distributable earnings: $190 million ($1.33 per share), 111% coverage.
- Loan portfolio: $7.1 billion with a weighted average unlevered yield of 8.1%. CECL allowance remains stable at $379 million ($2.74 per share).
- Debt-to-equity ratio improved to 3.2x, liquidity at $380 million, and book value per share (excluding CECL) at $12.77.

**【Q&A Key Highlights】**
- **Geographic & Asset Focus**: Multifamily (US & UK), senior housing, data centers. Europe remains a key growth market with similar risk profiles to US assets.
- **Loan Growth Potential**: Pipeline of $1 billion+ for H1 2025, targeting $7.5-$8 billion portfolio by end-2025 through repayments and new originations.
- **Market Dynamics**: Borrowers returning to sidelines post-Fed rate cuts; multifamily and industrial showing strength, while office remains cautious.
- **CLO Market**: No immediate plans to use CLOs; prefer flexible warehouse financing with current partners.
- **REO Resolution**: DC hotel performing above pre-COVID levels; Atlanta hotel under evaluation for CapEx vs. sale.

**【Risk & Outlook】**
- Specific reserves remain stable, with potential clawback of $375 million+ in 2025 from asset resolutions.
- 2025 earnings expected lower than Q4 2024 due to Fed rate cuts, but dividend coverage maintained.
- Focus on proactive asset management and redeploying underperforming capital into higher ROE opportunities.

Apollo Commercial Real Estate Finance, Inc. (ARI) Q4 2024 Earnings Call Transcript

Apollo Commercial Real Estate Finance (ARI)-31 Oct 24-2024 Q3 Earnings call transcript

Apollo Commercial Real Estate Finance (ARI)-7 Aug 24-2024 Q2 Earnings call transcript

Apollo Commercial Real Estate Finance (ARI)-30 Apr 24-2024 Q1 Earnings call transcript

Apollo Commercial Real Estate Finance (ARI)-7 Feb 24-2023 Q4 Earnings call transcript

Apollo Commercial Real Estate Finance (ARI)-1 Aug 23-2023 Q2 Earnings call transcript

Apollo Commercial Real Estate Finance (ARI)-9 Feb 23-2022 Q4 Earnings call transcript

Apollo Commercial Real Estate Finance (ARI)-25 Oct 22-2022 Q3 Earnings call transcript

Apollo Commercial Real Estate Finance (ARI)-27 Jul 22-2022 Q2 Earnings call transcript

Apollo Commercial Real Estate Finance (ARI)-26 Apr 22-2022 Q1 Earnings call transcript

Apollo Commercial Real Estate Finance (ARI)-9 Feb 22-2021 Q4 Earnings call transcript

Apollo Commercial Real Estate Finance (ARI)-26 Oct 21-2021 Q3 Earnings call transcript

Apollo Commercial Real Estate Finance (ARI)-27 Jul 21-2021 Q2 Earnings call transcript

Apollo Commercial Real Estate Finance (ARI)-23 Apr 21-2021 Q1 Earnings call transcript

Apollo Commercial Real Estate Finance (ARI)-11 Feb 21-2020 Q4 Earnings call transcript

Apollo Commercial Real Estate Finance (ARI)-27 Oct 20-2020 Q3 Earnings call transcript

Apollo Commercial Real Estate Finance (ARI)-31 Jul 20-2020 Q2 Earnings call transcript

Apollo Commercial Real Estate Finance (ARI)-8 May 20-2020 Q1 Earnings call transcript

Apollo Commercial Real Estate Finance (ARI)-14 Feb 20-2019 Q4 Earnings call transcript

Apollo Commercial Real Estate Finance (ARI)-24 Oct 19-2019 Q3 Earnings call transcript

Apollo Commercial Real Estate Finance (ARI)-25 Jul 19-2019 Q2 Earnings call transcript

Apollo Commercial Real Estate Finance (ARI)-25 Apr 19-2019 Q1 Earnings call transcript

Apollo Commercial Real Estate Finance (ARI)-14 Feb 19-2018 Q4 Earnings call transcript

Apollo Commercial Real Estate Finance (ARI)-25 Oct 18-2018 Q3 Earnings call transcript

Apollo Commercial Real Estate Finance (ARI)-26 Jul 18-2018 Q2 Earnings call transcript

Apollo Commercial Real Estate Finance (ARI)-3 May 18-2018 Q1 Earnings call transcript

Apollo Commercial Real Estate Finance (ARI)-15 Feb 18-2017 Q4 Earnings call transcript

Apollo Commercial Real Estate Finance (ARI)-2 Nov 17-2017 Q3 Earnings call transcript

ARI

ARI fundamentals

Earnings Call

You can ask Aime