--- title: "Apollo Commercial Real | 8-K: FY2026 Q2 EPS Beats Estimate at USD 0.11" type: "News" locale: "en" url: "https://longbridge.com/en/news/295604530.md" datetime: "2026-08-12T02:42:17.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/295604530.md) - [en](https://longbridge.com/en/news/295604530.md) - [zh-HK](https://longbridge.com/zh-HK/news/295604530.md) generator: "portal-rs" --- # Apollo Commercial Real | 8-K: FY2026 Q2 EPS Beats Estimate at USD 0.11 EPS: As of FY2026 Q2, the actual value is USD 0.11, beating the estimate of USD 0.0576. #### Net Income and Distributable Earnings Net income available to common stockholders was $23 million, or $0.11 per diluted share, for the three months ended June 30, 2026. Distributable Earnings prior to net realized loss on investments and loss on extinguishment of debt were $21 million, or $0.15 per diluted share, for the same quarter. Total Distributable Earnings for the quarter were - $349 million, or - $2.62 per diluted share. #### Dividends Apollo Commercial Real Estate Finance, Inc. declared common stock dividends of $3.75 per share, with a substantial portion expected to be classified as return of capital. #### Asset Sale and Realized Losses During the six months ended June 30, 2026, Apollo Commercial Real Estate Finance, Inc. recorded net realized losses on investments and extinguishment of debt in connection with the sale of its commercial real estate loan portfolio to Athene Holding Ltd. The sale was completed on April 24, 2026, for a purchase price based on 99.7% of total loan commitments. A $338 million net realized loss was recognized at closing, comprising a $335 million write-off of previously recorded Specific CECL Allowances and approximately $3 million net realized loss on investments. Net realized loss on investments was - $339,087 thousand for the three months ended June 30, 2026, compared to - $0 thousand in the prior year. #### Loss on Extinguishment of Debt In conjunction with the asset sale, all associated secured debt and corporate-level facilities were fully repaid, leading to a loss on extinguishment of debt of approximately $31 million due to the write-off of unamortized original issue discounts and deferred financing costs. Loss on extinguishment of debt was - $30,714 thousand for the three months ended June 30, 2026. #### Portfolio Activity One commercial mortgage loan with a principal balance of $46 million was repaid after the closing of the portfolio sale. A commercial mortgage loan secured by a hotel in Chicago, IL, was repaid at a discount, resulting in an approximate $1.5 million reversal of previously recorded Specific CECL Allowance and recognition of an approximate $1.5 million realized loss on investments. As of June 30, 2026, the only remaining outstanding debt was construction financing on the Brooklyn Multifamily property. #### Capitalization & Liquidity Apollo Commercial Real Estate Finance, Inc. ended the quarter with $1.2 billion of cash. The company repurchased 8.6 million shares of common stock at a weighted average price of $10.85 per share, which resulted in book value per share accretion of $0.08. Total common equity book value at the end of the quarter was $1.1 billion. #### Preferred Stock Redemption On July 15, 2026, Apollo Commercial Real Estate Finance, Inc. completed the redemption of all outstanding shares of its 7.25% Series B-1 Cumulative Redeemable Perpetual Preferred Stock for a total liquidation preference of $169 million, plus all accrued and unpaid dividends. #### Book Value Per Share Book value per share was $12.01 as of March 31, 2026, and $8.47 as of June 30, 2026. The net impact to book value per share attributable to the Asset Sale was +$0.06. #### Real Estate Owned (REO) Portfolio As of June 30, 2026, the REO portfolio consisted of four properties with net assets totaling $912 million and net equity of $541 million. The Brooklyn Multifamily property had net assets of $662 million, debt of - $371 million, and net equity of $291 million. #### Capital Structure Composition (Post Preferred Stock Redemption) As of July 15, 2026, the capital structure included Debt Related to Real Estate Owned of $372 million (26%) and Common Equity Book Value of $1,086 million (74%), which includes $1.1 billion of cash. #### Consolidated Balance Sheet Highlights (June 30, 2026 vs. December 31, 2025) Total Assets decreased from $9,900,967 thousand in 2025 to $2,136,304 thousand in 2026. Cash and cash equivalents increased from $139,825 thousand in 2025 to $1,239,480 thousand in 2026. Commercial mortgage loans, net, and subordinate loans, net, were both - $0 thousand in 2026, down from $8,712,018 thousand and $62,198 thousand respectively in 2025. Real estate owned, held for investment, net, increased from $842,947 thousand in 2025 to $856,970 thousand in 2026. Total Liabilities decreased from $8,044,877 thousand in 2025 to $881,444 thousand in 2026. Debt related to real estate owned, held for investment, net, decreased from $424,703 thousand in 2025 to $371,428 thousand in 2026. Total Stockholders’ Equity decreased from $1,856,090 thousand in 2025 to $1,254,860 thousand in 2026. #### Consolidated Statement of Operations Highlights (Three Months Ended June 30, 2026 vs. 2025) Net interest income decreased from $43,070 thousand in 2025 to $8,141 thousand in 2026. Revenue from real estate owned operations increased from $27,832 thousand in 2025 to $36,242 thousand in 2026. Total net revenue decreased from $70,902 thousand in 2025 to $44,383 thousand in 2026. Total operating expenses decreased from - $38,561 thousand in 2025 to - $37,078 thousand in 2026. Other income, net, increased from $1,943 thousand in 2025 to $8,362 thousand in 2026. There was a decrease in current expected credit loss allowance, net, of $379,224 thousand in 2026, compared to an increase of - $3,113 thousand in 2025. Net income before taxes increased from $20,855 thousand in 2025 to $25,806 thousand in 2026. #### Assets Under Management Apollo Global Management, Inc. had approximately $1.05 trillion of assets under management as of June 30, 2026. #### Outlook / Guidance Apollo Commercial Real Estate Finance, Inc. generally intends to pay dividends to stockholders over time in an amount equal to its net taxable income, subject to board authorization. The company has filed a preliminary proxy statement with the SEC related to a Special Meeting of Stockholders to consider and vote on a proposal to approve the dissolution of the Company, the liquidation of its assets, and the winding up of its business and affairs. The Company disclaims any intention or obligation to update forward-looking statements, except as required by law, which cover potential future results, financial conditions, and market trends, including higher interest rates and inflation. ### Related Stocks - [ARI.US](https://longbridge.com/en/quote/ARI.US.md) ## Related News & Research - [Apollo Commercial Real Estate Finance director Michael Salvati disposes of $6,572.6 in common shares](https://longbridge.com/en/news/297228141.md) - [Apollo Commercial Real Estate Finance announces special shareholder meeting](https://longbridge.com/en/news/296831063.md) - [LexinFintech Non-GAAP EPADS of $0.11, revenue of $469.71M; gives Q3 outlook](https://longbridge.com/en/news/297466798.md) - [BlackRock Inc. 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