Apollo Commercial Real Estate Finance (ARI) Q2 2026 earnings summary

Executive summary

• Net income available to common stockholders was $23 million ($0.11 per diluted share) for Q2 2026.

• Distributable Earnings prior to net realized loss on investments and loss on extinguishment of debt were $21 million ($0.15 per diluted share).

• Distributable Earnings were negative $349 million ($-2.62 per diluted share), reflecting significant realized losses from the commercial real estate loan portfolio sale.

• Completed sale of the entire commercial real estate loan portfolio for $8.6 billion, resulting in no outstanding loans as of June 30, 2026.

• Board filed a preliminary proxy for a Special Meeting to vote on dissolution and liquidation of the company.

Financial highlights

• Book value per share decreased from $12.01 at March 31, 2026 to $8.47 at June 30, 2026, primarily due to realized losses and dividend payments.

• Declared common stock dividends of $3.75 per share, with a substantial portion expected as return of capital.

• Repurchased up to 11.5 million shares at an average price of $10.76–$10.85, resulting in $0.08 accretion to book value per share.

• Net interest income declined due to the asset sale, with only two months of interest income in Q2 2026.

• Ended the quarter with $1.2 billion in cash and total common equity book value of $1.1 billion.

Outlook and guidance

• If liquidation is approved, company will adopt liquidation basis accounting and distribute assets to stockholders.

• Future distributions expected to be classified as liquidating distributions for tax purposes; final tax characteristics will be determined upon filing Form 1099 in January 2027.

• Forward-looking statements highlight risks from higher interest rates, inflation, and market trends in real estate and debt securities.