Apollo Commercial Real Estate Finance Reports Q2 2025 Financial Results with $20.7M Net Income

Apollo Commercial Real Estate Finance, Inc. reported its financial results for the second quarter of 2025, revealing a net income of $20.7 million, or $0.12 per diluted share, compared to $35.8 million, or $0.23 per diluted share, in the same period last year. For the first half of 2025, the company recorded a net income of $46.7 million, a significant recovery from a net loss of $68.7 million in the first half of 2024. The total net revenue for the second quarter was $70.9 million, down from $81.1 million year-over-year, primarily due to a decrease in interest income from commercial mortgage loans, which fell to $166.7 million from $179.4 million.

The company experienced notable changes in its balance sheet, with total assets increasing to $9.8 billion as of June 30, 2025, up from $8.4 billion at the end of 2024. This growth was driven by a rise in commercial mortgage loans, which reached $8.5 billion, compared to $6.7 billion at the end of the previous year. However, the company’s cash and cash equivalents decreased to $177.6 million from $317.4 million, reflecting increased loan funding activities. Liabilities also rose significantly, with total liabilities reaching $8.0 billion, up from $6.5 billion, largely due to increased secured debt arrangements.

Operationally, Apollo Commercial Real Estate Finance reported a total of 54 loans in its portfolio as of June 30, 2025, with a carrying value of $8.6 billion. The company’s loan portfolio was predominantly composed of floating-rate loans, which accounted for 96% of the total. The weighted-average risk rating of the loan portfolio was 3.0, indicating a moderate risk profile. The company also noted an increase in its General CECL Allowance, which rose to $43.9 million, reflecting adjustments based on loan originations and macroeconomic conditions.

Looking ahead, Apollo Commercial Real Estate Finance remains focused on its strategy of originating and managing commercial mortgage loans and related debt investments. The company has committed $2.0 billion to new loans in the first half of 2025 and anticipates continued growth in its loan portfolio. However, it also acknowledged potential challenges posed by macroeconomic factors, including rising interest rates and inflation, which could impact its operations and financial performance. The company plans to maintain its REIT status by distributing at least 90% of its taxable income to shareholders, with dividends declared at $0.25 per share for the second quarter, down from $0.35 in the prior year.