Dividend sustainability remains a primary concern, as evidenced by negative AFFO in four of the last ten quarters, including a $134.1 million deficit in 2024Q3.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 |
|---|
| Cash from Operations | 115.77M | 142.52M | 200.26M | 273.86M | 267.7M | 199.38M | 164.05M | 273.44M | 265.96M | 154.87M | 118.88M | 88.12M | 67.04M | 45.98M | 40.1M | 35.46M | 16.59M | -1.29M |
| Operating CF Growth % | -158.52% | -28.83% | -26.88% | 2.3% | 34.27% | 21.54% | -40% | 2.81% | 71.73% | 30.28% | 34.91% | 31.45% | 45.79% | 14.66% | 13.11% | 113.67% | 1384.37% | - |
| Operating CF / Revenue % | 16.32% | 20.06% | 28.55% | 35.25% | 41.74% | 47.33% | 47.85% | 55.91% | 64.3% | 53.74% | 40.06% | 44.76% | 54.35% | 59.48% | 71.05% | 69.4% | 51.9% | -217.14% |
| Net Income | 126.96M | 126.72M | -122.89M | 58.13M | 261.1M | 223.51M | 18.38M | 230.17M | 219.99M | 193.03M | 157.88M | 103.26M | 82.74M | 52.48M | 40.18M | 25.88M | 11M | -2.17M |
| Depreciation & Amortization | -22.95M | -15.88M | 11.67M | 8.25M | 704K | 2.65M | -48.88M | 0 | -53.08M | -41.39M | -6.07M | -8.22M | -2.24M | -4.86M | 1.56M | 9.24M | 6.21M | 0 |
| Stock-Based Compensation | 13.25M | 13.63M | 0 | 17.44M | 0 | 17.63M | 16.82M | 15.9M | 8.81M | 10.98M | 4.46M | 4.27M | 698K | 3.46M | 2.85M | 0 | 0 | 0 |
| Other Non-Cash Items | -29.02M | -8.76M | 373.26M | 190.5M | -67.38M | -50.68M | 136.06M | 26.15M | 75.65M | 6.67M | 4.61M | 2.99M | 1.98M | 866K | 1.96M | 2.17M | 2.86M | 453K |
| Working Capital Changes | 27.53M | 26.81M | -61.78M | -452K | 73.28M | 6.27M | -7.2M | 1.21M | -8.24M | -13.7M | -32.36M | -26.64M | -10.14M | -8.01M | 2.59M | -1.83M | -3.48M | 427K |
| Cash from Investing | -1.16B | -1.39B | 577.17M | 68.42M | -1.34B | -1.36B | -215.72M | -1.44B | -998.92M | -720.71M | 1.04B | -790.88M | -886.69M | -165.82M | 192.93M | -60.88M | -607.59M | -205.38M |
| Acquisitions (Net) | 0 | 0 | 0 | 569K | 0 | 0 | 0 | 0 | 0 | 0 | 1.7B | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -3.66M | -6.04M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -927K | -362K | -4.26M | -415.31M | -134.39M | -70.68M | 0 | -521.37M | -154.98M |
| Sale of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 492.67M | 168.78M | 60.08M | 31.55M | 218.48M | 349.87M | 75.69M | 22.99M | 0 |
| Other Investing | -1.08B | -1.28B | 746.67M | 140.48M | -1.31B | -1.36B | -215.72M | -1.44B | -998.92M | -1.21B | 870.79M | -846.7M | -502.93M | -249.91M | -86.26M | -136.57M | -109.21M | -50.4M |
| Cash from Financing | 798.63M | 1.06B | -689.31M | -343.36M | 957.97M | 1.18B | -75.12M | 1.5B | 765.09M | 380.06M | -1.02B | 729.53M | 840.2M | 31.31M | -145.99M | 9.1M | 498.92M | 336.64M |
| Dividends Paid | -115.06M | -153.55M | -198.22M | -214.29M | -212.85M | -212.61M | -251.29M | -291.21M | -254.56M | -219.68M | -160.17M | -108.29M | -75.24M | -62.91M | -35.42M | -29.41M | -14.49M | 0 |
| Common Dividends | -105.86M | -141.28M | -185.95M | -202.02M | -200.57M | -199.65M | -237.75M | -269.23M | -227.22M | -183.88M | -132.21M | -100.85M | -67.8M | -55.47M | -33.89M | -29.41M | -14.49M | 0 |
| Debt Issuance (Net) | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 0 | -1000K | 1000K | 1000K | 1000K |
| Share Repurchases | 0 | 0 | -40.81M | 0 | 0 | 0 | -127.99M | 0 | 0 | -116.99M | 0 | -1.74M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 53.23M | 64.72M | 144.47M | -19.07M | 141.37M | -28.34M | -17.61M | -19.02M | -15.82M | 147.65M | -4.42M | -3.89M | 410.76M | -54.58M | -69.96M | -13.44M | -6.21M | -256K |
| Net Change in Cash | -26.6M | -177.57M | 91.96M | 3.41M | -121.08M | 17.61M | -126.78M | 342.48M | 32.13M | -185.78M | 133.58M | 26.77M | 20.55M | -88.52M | 87.05M | -16.33M | -92.08M | 129.97M |
| Exchange Rate Effect | 1.13M | 2.2M | 3.84M | 4.49M | -7.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 0 | 317.4M | 225.44M | 222.03M | 343.11M | 325.5M | 452.28M | 109.81M | 77.67M | 263.45M | 67.42M | 40.64M | 20.1M | 108.62M | 21.57M | 37.89M | 129.97M | 1K |
| Cash at End | 0 | 139.82M | 317.4M | 225.44M | 222.03M | 343.11M | 325.5M | 452.28M | 109.81M | 77.67M | 201M | 67.42M | 40.64M | 20.1M | 108.62M | 21.57M | 37.89M | 129.97M |
| Free Cash Flow | 40.42M | 42.31M | 30.75M | 201.23M | 234.67M | 199.25M | 164.05M | 273.44M | 265.96M | 153.49M | 117.24M | 88.11M | 67.04M | 45.98M | 40.1M | 35.46M | 16.59M | -1.29M |
| FCF Growth % | 33.59% | 37.59% | -84.72% | -14.25% | 17.78% | 21.46% | -40% | 2.81% | 73.27% | 30.92% | 33.06% | 31.44% | 45.79% | 14.66% | 13.11% | 113.67% | 1384.37% | - |
| FCF / Revenue % | 5.7% | 5.96% | 4.38% | 25.9% | 36.59% | 47.3% | 47.85% | 55.91% | 64.3% | 53.26% | 39.51% | 44.75% | 54.35% | 59.48% | 71.05% | 69.4% | 51.9% | -217.14% |
Dividend coverage and liquidity
As reported in recent financial statements, ARI has struggled to maintain positive AFFO, with the company recording negative AFFO in four of the last ten quarters, including a significant deficit of $134.1 million in 2024Q3, which fundamentally undermines the sustainability of its current dividend distribution policy.
The frequent inability of AFFO to cover dividend payments suggests that the company is effectively distributing capital rather than earnings. Investors should monitor whether this trend forces a permanent reduction in the payout ratio to align with actual cash-generating capacity.
Based on the provided quarterly data, the relationship between Net Income and FFO is highly inconsistent, with FFO/NI ratios swinging from 3.05 in 2025Q2 to -0.52 in 2024Q3, indicating that non-cash accounting adjustments and credit loss provisions are creating significant noise in headline earnings metrics.
This volatility implies that GAAP Net Income is an unreliable proxy for the company's actual liquidity. The wide variance suggests that management's adjustments to arrive at FFO may not fully capture the economic reality of the underlying loan portfolio's performance.
According to the company's cash flow statements, ARI has consistently deployed significant capital toward maintenance and leasing-related activities, with quarterly outflows reaching as high as $46.2 million in 2024Q4, which directly reduces the net cash available for distribution to shareholders after accounting for recurring property-level requirements.
These recurring capital expenditures appear to be a structural drag on free cash flow. The magnitude of these outflows suggests that the portfolio requires ongoing investment to maintain asset value, further complicating the company's ability to generate surplus cash.
As indicated by the historical data, the conversion of GAAP operating cash flow into meaningful FFO remains inconsistent, with OCF fluctuating between $8.2 million and $63.2 million over the last two years, suggesting that timing differences in interest collections and working capital changes are impacting liquidity.
The lack of a stable correlation between operating cash flow and FFO warrants further investigation into the timing of interest receipts versus accruals. This instability may indicate that the company is reliant on specific loan repayment events to fund its operational obligations.
Quick answers to the most common questions about buying ARI stock.
Apollo Commercial Real Estate Finance, Inc. (ARI) generated $142.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Apollo Commercial Real Estate Finance, Inc. (ARI) generated $42.3M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Apollo Commercial Real Estate Finance, Inc. (ARI) spent $100.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Apollo Commercial Real Estate Finance, Inc. (ARI) returned $153.5M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.