Apollo Commercial Real Estate Finance (ARI) Q1 2026 earnings summary

Executive summary

• Completed sale of commercial real estate loan portfolio for up to $9B, transforming the balance sheet and capital structure, with proceeds used to repay all secured and corporate debt.

• Net income available to common stockholders was $23.2M ($0.16 per diluted share) for Q1 2026.

• Distributable Earnings for Q1 2026 were $31M ($0.22 per diluted share).

• Board approved a $150M stock repurchase program.

• Management is evaluating new commercial real estate strategies, with updates expected in coming months.

Financial highlights

• Net interest income for Q1 2026 was $36M, down from $39M in Q1 2025.

• Interest income from commercial mortgage loans rose to $150M, while interest expense increased to $114M.

• Declared dividends of $0.25 per common share and $0.45 per preferred share for Q1 2026.

• Repurchased 2.9M shares at an average price of $10.52, accreting $0.03 to book value per share.

• Ended Q1 with $285M in liquidity, including $229M in cash.

Outlook and guidance

• Strategic review ongoing, with clarity on future direction expected within months.

• Book value per share post-portfolio sale is $12.15.

• Quarterly dividend policy targets an 8% annualized yield on book value per share.

• Future dividends likely to include a significant return of capital component.

• New management agreement ties base management fee to return on equity, with incentive fees above an 8% ROE hurdle.