Apollo Commercial Real Estate Finance, Inc. Q3 FY2025 earnings call

• Strong origination activity: Apollo on pace for record commercial real estate loan originations with over $19B closed to date, $3B year-to-date originations for ARI, and $1B committed in the quarter. • Europe activity: ARI active in Europe, a fragmented lender universe, with healthy fundamentals across property types. • Focus assets: 111 West 57th Street had six new contracts signed since last earnings call, three closing post quarter end generating ~$55M in proceeds. Brook multifamily development in Brooklyn has strong leasing velocity and on track to exit in 2026. • Liquidity: ARI maintains robust liquidity with $312M in liquidity, and upsized revolving credit facility by $115M and extended maturity to August 2028. • Financial results: 2025 GAAP net income $48M or 34¢ per diluted share, distributable earnings $42M or 30¢ per share, run rate distributable earnings $32M or 23¢ per share.

ARI's third quarter was marked by strong origination activity. Year-to-date originations totaled $3 billion, with $1 billion committed during the quarter. The loan portfolio had a carrying value of $8.3 billion at quarter end, with a weighted average unlevered yield of 7.7%. Residential loans, including multifamily, for-sale residential, senior housing, and student housing, represent 31% of the portfolio. Apollo is on pace for a record year of commercial real estate loan originations with over $19 billion closed to date.

• Reinvestment from 111 West 57th sales to provide upside to earnings in Q4 and 2026. • Anticipate resolutions on focused assets towards the second part of 2026, with recycling of capital from self-performing assets uplifting earnings in 2026. • Robust pipeline of loans expected to close before year end.

• Uncertainty in timing of repayments and quarterly variations in repayment rates. • Market fluctuations and uncertainties in the resolution of focus asset sales, such as Liberty Center.

Q: As you think about the timeline to monetizing the Brook and pacing of future sales at 111 West 57th?

A: For 111 West 57th, early part of next year hoped to finish, Brook expected to be brought to market late spring/early summer 2026 with closing late third quarter/early fourth quarter.

Q: Thoughts on Liberty Center asset progress?

A: Parent of movie theater at Liberty Center filed bankruptcy, movie theater continues to pay rent but operating suboptimally, process to play out through bankruptcy court, better assessment of exit timing late Q1/early Q2 2026.

Q: On 111 West 57th exposure and Brooklyn multifamily debt difference?

A: 111 West 57th exposure slightly up due to capitalized costs, Anastasia to follow up on Brooklyn multifamily debt difference after call.

Q: Envision of loan portfolio trending?

A: Growth from focus asset capital deployment, taking unlevered capital from focus assets and deploying into senior loans with leverage.

Q: Hospitality sector attractiveness?

A: Always active in hospitality, two sizable hotel loans originated due to size and in-place cash flow, nothing special, hotels have part of portfolio.

Q: Update on office portfolio?

A: Office trends improving, city-by-city, more people back in office, positive leasing momentum in New York, London, and some Chicago assets.

Q: Tick up in repayment rates with rates coming down?

A: Repayments due to normal market activity, people achieving business plans and selling, refinancing, not specifically due to COVID-era advantages.