Apollo Commercial Real Estate Finance, Inc. reported significant changes in its financial performance for the second quarter of 2026, primarily driven by the sale of its commercial real estate loan portfolio. The company recorded a net income of $25.8 million for the three months ended June 30, 2026, compared to $20.9 million for the same period in 2025. This resulted in net income available to common stockholders of $22.7 million, or $0.11 per diluted share, down from $17.7 million, or $0.12 per diluted share, in the prior year. For the first half of 2026, net income available to common stockholders was $45.9 million, or $0.27 per diluted share, compared to $40.6 million, or $0.28 per diluted share, in 2025.
The company experienced a substantial decrease in net interest income, which fell to $8.1 million in the second quarter of 2026 from $43.1 million in the same quarter of 2025. This decline was attributed to the sale of its commercial mortgage loans, which resulted in two fewer months of interest income. Total net revenue for the second quarter was $44.4 million, down from $70.9 million in the previous year. The company also reported a net realized loss on investments of $339.1 million, primarily due to the write-off of a Specific Current Expected Credit Loss (CECL) allowance related to loans included in the asset sale.
In terms of operational developments, Apollo completed the sale of its commercial real estate loan portfolio to Athene for approximately $8.6 billion on April 24, 2026. This transaction allowed the company to repay all of its secured debt arrangements, including a senior secured term loan and senior secured notes, totaling approximately $7.8 billion. As of June 30, 2026, Apollo had no outstanding loans, and its total assets decreased significantly to $2.1 billion from $9.9 billion at the end of 2025. The company’s stockholders' equity also declined to $1.3 billion from $1.9 billion during the same period.
Looking ahead, Apollo's board of directors has proposed a plan for the company's dissolution and liquidation of its assets, which will be voted on by stockholders. If approved, the company will adopt a liquidation basis of accounting, recognizing its assets at estimated amounts expected to be collected and liabilities at amounts expected to be settled. The company has also declared a dividend of $3.75 per share of common stock, reflecting its strategy to return capital to stockholders. As of June 30, 2026, Apollo had $1.2 billion in cash and cash equivalents, positioning it to meet its short-term liquidity needs.
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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