Apollo Commercial Real Estate Finance, Inc. reported its financial results for the first quarter of 2026, revealing a net income of $26.2 million, or $0.16 per diluted share, compared to $26.0 million, or $0.16 per diluted share, in the same period last year. The company's total net revenue for the quarter was $58.6 million, down from $65.8 million in the prior year, primarily due to a decrease in revenue from real estate owned operations, which fell to $22.6 million from $26.3 million. The decline in revenue was attributed to seasonal factors affecting hotel operations, particularly at the D.C. Hotel and the Atlanta Hotel.
In terms of operational metrics, Apollo's commercial mortgage loans increased to $8.8 billion as of March 31, 2026, up from $8.7 billion at the end of 2025. The company also reported a decrease in its General CECL Allowance, which fell to $41.2 million from $44.5 million, reflecting favorable portfolio seasoning. The total assets of Apollo rose to $10.1 billion, compared to $9.9 billion at the end of the previous fiscal year, driven by an increase in cash and cash equivalents, which stood at $126.8 million.
Strategically, Apollo has made significant moves, including the completion of an asset sale to Athene Holding Ltd. for approximately $8.6 billion, which was finalized on April 24, 2026. This transaction involved the sale of the company's commercial real estate loan portfolio, excluding certain loans that were repaid prior to closing. The proceeds from this sale were utilized to repay all secured credit facilities and other corporate debt, significantly improving the company's liquidity position.
The company also repurchased 2.9 million shares of its common stock during the first quarter at an average price of $10.52 per share, as part of its ongoing stock repurchase program. As of March 31, 2026, Apollo had approximately $101.4 million remaining under its stock repurchase authorization. The company continues to maintain a strong focus on managing its portfolio, with a weighted-average risk rating of 3.0 for its loans, indicating a moderate level of risk.
Looking ahead, Apollo's management expressed cautious optimism regarding market conditions, acknowledging the potential impact of macroeconomic factors such as interest rates and inflation on their operations. The company remains committed to its strategy of originating and managing high-quality commercial mortgage loans while navigating the challenges posed by the current economic environment.
About Apollo Commercial Real Estate Finance, Inc.
Apollo Commercial Real Estate Finance, Inc. is a REIT specializing in originating, acquiring, and managing performing commercial first mortgage loans, subordinate financings, and other commercial real estate-related debt investments. It targets institutional-quality real estate assets primarily in the U.S. and Europe. Externally managed by Apollo Global Management, the company leverages Apollo’s expertise and platform to deliver attractive risk-adjusted returns through dividends and capital appreciation, using a leveraged financing model.
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