| Date Reviewed | 08/20/2025 |
| Company Name | Apollo Commercial Real Estate Finance Inc |
| Symbol | ARI |
| Sector | Financials |
| Industry | REIT - Mortgage |
| Beta | 1.64 |
| PRO Rating | 3 |
| Dividend Safety | 2 |
Business Model
Apollo Commercial Real Estate Finance, Inc. is a real estate investment trust. The Company primarily originates, acquires, invests in and manages performing commercial first mortgage loans, subordinate financings and other commercial real estate-related debt investments. Its principal business objective is to acquire its target assets in order to provide attractive risk- adjusted returns to its stockholders over the long term, primarily through dividends and secondarily through capital appreciation. Its investment strategy is to identify opportunities within its target assets through its manager and its affiliates as well as their platform, which integrates real estate experience with private equity and capital markets in transaction sourcing, underwriting, execution, asset operation, management and disposition. It targets assets that are secured by real estate throughout the United States and Europe. The Company is externally managed and advised by ACREFI Management, LLC.
| Current price | 10.17 |
| ROE | -6.60 % |
| ROIC | 0.00 % |
| Shareholder Yield | 4.25 % |
| 5-Yr Total Return | 92.90 % |
| 1-Yr Total Return | 24.55 % |
| Next Earnings Date | 10-30-25 |
Latest Quarter Information
What the CEO said:We continue to execute on the business plan laid out for ARI. For the first six months of the year, ARI committed $2.0 billion to new loans as we redeploy capital from repayments and the capital generated from managing towards resolution on ARI’s focus assets.
2025-08-19, ARI reported dismal 2Q'25 results. For Q2, the net income available to common stockholders per diluted share was $0.12, compared to $0.23 in the prior year quarter. Distributable earnings came in at $0.26/ share versus $0.35 in 2Q'24. ARI’s total loan portfolio was $8.6B with W.A. unlevered all-in yield of 7.8%, comprising 98% first mortgages, and 96% floating rate. ARI committed $2B to new loans YTD, $1.4B in Q2. It ended Q2 with $208M of total liquidity and an equity book value of $1.7B. The company recorded $394M in gross add-on funding, and loan repayments and sales of $631M, in Q2. ARI received a full repayment of a $250M first mortgage.
Investment Thesis
Dividend Triangle
| 5-Yr Rev. Growth | 10.80 % |
| 5-Yr EPS Growth | 0.00 % |
| 5-Yr Div Growth | -11.25 % |
Potential Risks
| Debt/Equity | 3.40 |
| Financial Debt to EBITDA (TTM) | 58.15 |
| Current Ratio (Quarterly) | 0.00 |
| Credit Score | 6 |
Dividend Growth Perspective
| Dividend ($) | 1 |
| Dividend Yield Fwd | 10.10 % |
| Dividend Frequency | Quarterly |
| Average 5-Yr Yield | 11.80 % |
| Payout Ratio (%) | 0.00 |
| Cash Payout Ratio (%) | 398.85 |
| DGR 1-Yr | 24.45 |
| DGR 3-Yr | -15.05 |
| DGR 5-Yr | -11.25 |
| DGR Streak | |
| Chowder Score | -1.15 |
| Next DVD PMT | 10-15-25 |
Valuation
(Data for `ddm_growth_rate_years` field are missing to build DDM tables)
Video Tutorial: How to Read the Stock Cards DDM Valuation
| Market Cap | 1 B |
| PE Ratio | 0.00 |
| Fwd PE | 10.65 |
| Price to Book Ratio | 0.75 |
| DDM Valuation | 0 |
| Average 5-Yr PE | 143.68 |
| Value Score | 94 |
- All financial metrics are updated weekly.
- The DSR PRO rating and Dividend Safety Score are updated quarterly.
- The analysis (investment thesis, risk potential, dividend growth perspective and DDM calculation) is reviewed every 6 months.
- The PDF format includes only comments (no metrics) and is reviewed every 6 months.