NOI margins have experienced severe volatility, contracting to 23.4% in 2026Q1 from historical peaks exceeding 80%, indicating significant pressure from credit loss provisions.
| 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 |
|---|
| Revenue | 709.18M | 710.49M | 701.53M | 777M | 641.34M | 421.23M | 342.84M | 489.05M | 413.6M | 288.17M | 296.76M | 196.89M | 123.35M | 77.31M | 56.45M | 51.09M | 31.97M | 595K |
| Revenue Growth % | 7.28% | 1.28% | -9.71% | 21.15% | 52.26% | 22.86% | -29.9% | 18.24% | 43.53% | -2.89% | 50.72% | 59.62% | 59.56% | 36.96% | 10.49% | 59.79% | 5273.28% | - |
| Property Operating Expenses | 239.62M | 141.72M | 141.14M | 127.23M | 92.19M | 63.37M | 39.75M | 40.73M | 36.42M | 31.65M | 23.39M | 16.62M | 11.96M | 0 | 0 | 0 | 0 | 0 |
| Net Operating Income (NOI) | 469.56M | 568.76M | 560.39M | 649.77M | 549.15M | 357.85M | 303.09M | 448.31M | 377.18M | 256.52M | 273.37M | 180.27M | 111.39M | 77.31M | 56.45M | 51.09M | 31.97M | 595K |
| NOI Margin % | 66.21% | 80.05% | 79.88% | 83.63% | 85.62% | 84.96% | 88.41% | 91.67% | 91.19% | 89.02% | 92.12% | 91.56% | 90.3% | 100% | 100% | 100% | 100% | 100% |
| Operating Expenses | 72.23M | 104.39M | 142.71M | 182.23M | -100.52M | -56.6M | 164.34M | 240.07M | 11.13M | 78.14M | 115.88M | 76.82M | 24.48M | 24.84M | 16.27M | 25.22M | 20.99M | 2.83M |
| G&A Expenses | 30.22M | 61.58M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EBITDA | 410.02M | 475.55M | 429.35M | 475.78M | 650.37M | 417.1M | 167.27M | 383.1M | 334.58M | 271.09M | 221.63M | 152.12M | 109.28M | 56.84M | 48.58M | 40.34M | 21.71M | -2.07M |
| EBITDA Margin % | 57.82% | 66.93% | 61.2% | 61.23% | 101.41% | 99.02% | 48.79% | 78.34% | 80.89% | 94.07% | 74.68% | 77.26% | 88.6% | 73.53% | 86.07% | 78.96% | 67.91% | -347.56% |
| Depreciation & Amortization | 12.7M | 11.17M | 11.67M | 8.25M | 704K | 2.65M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A / Revenue % | 1.79% | 1.57% | 1.66% | 1.06% | 0.11% | 0.63% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Operating Income | 397.32M | 464.37M | 417.69M | 467.54M | 649.66M | 414.45M | 138.75M | 208.24M | 366.05M | 178.38M | 157.49M | 103.45M | 86.91M | 52.47M | 40.17M | 25.87M | 10.98M | -2.24M |
| Operating Margin % | 56.03% | 65.36% | 59.54% | 60.17% | 101.3% | 98.39% | 40.47% | 42.58% | 88.5% | 61.9% | 53.07% | 52.54% | 70.46% | 67.87% | 71.17% | 50.64% | 34.35% | -375.97% |
| Interest Expense | 4M | 460.09M | 503.95M | 466.11M | 270.52M | 162.52M | 148.89M | 152.93M | 114.6M | 78.06M | 63.76M | 48.86M | 26.54M | 4.36M | 8.4M | 14.45M | 10.71M | 104K |
| Interest Coverage | - | 1.28x | 0.76x | 1.13x | 1.98x | 2.38x | 1.12x | 2.51x | 2.92x | 3.47x | 3.48x | 3.11x | 4.12x | 13.05x | 5.78x | 2.79x | 2.03x | -19.88x |
| Non-Operating Income | -81.02M | -122.77M | 32.98M | -57.14M | 113.91M | 28.42M | -28.52M | -174.86M | 31.47M | -92.71M | -64.14M | -48.67M | -22.37M | -4.38M | -8.41M | -14.47M | -10.73M | -169K |
| Pretax Income | 127.4M | 127.05M | -119.24M | 58.57M | 265.23M | 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 |
| Pretax Margin % | 17.96% | 17.88% | -17% | 7.54% | 41.36% | 53.06% | 5.36% | 47.07% | 53.19% | 66.98% | 53.2% | 52.44% | 67.08% | 67.89% | 71.18% | 50.66% | 34.4% | -365.04% |
| Income Tax | 445K | 331K | 394K | 442K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0.35% | 0.26% | -0.33% | 0.75% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | 126.96M | 126.72M | -119.64M | 58.13M | 265.23M | 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 |
| Net Margin % | 17.9% | 17.84% | -17.05% | 7.48% | 41.36% | 53.06% | 5.36% | 47.07% | 53.19% | 66.98% | 53.2% | 52.44% | 67.08% | 67.89% | 71.18% | 50.66% | 34.4% | -365.04% |
| Net Income Growth % | 1066.98% | 205.92% | -305.82% | -78.08% | 18.66% | 1116.28% | -92.02% | 4.63% | 13.96% | 22.27% | 52.9% | 24.8% | 57.64% | 30.62% | 55.25% | 135.31% | 606.4% | - |
| Funds From Operations (FFO) | 139.65M | 137.89M | -107.97M | 66.37M | 265.94M | 226.16M | -30.51M | 230.17M | 166.9M | 151.64M | 151.8M | 95.04M | 80.5M | 47.63M | 41.74M | 35.12M | 17.21M | -2.17M |
| FFO Margin % | 19.69% | 19.41% | -15.39% | 8.54% | 41.47% | 53.69% | -8.9% | 47.07% | 40.35% | 52.62% | 51.15% | 48.27% | 65.26% | 61.61% | 73.95% | 68.74% | 53.84% | -365.04% |
| FFO Growth % | 103.12% | 227.72% | -262.66% | -75.04% | 17.59% | 841.36% | - | - | 10.07% | -0.11% | 59.73% | 18.06% | 69% | 14.1% | 18.87% | 104.02% | - | - |
| FFO per Share | 1.00 | 0.99 | -0.77 | 0.47 | 1.61 | 1.34 | -0.21 | 1.31 | 1.09 | 1.50 | 2.07 | 1.60 | 1.84 | 1.33 | 1.84 | 1.86 | 1.36 | -0.21 |
| FFO Payout Ratio % | 75.8% | 102.45% | -172.23% | 304.36% | 75.42% | 88.28% | -779.36% | 116.97% | 136.14% | 121.26% | 87.09% | 106.12% | 84.23% | 116.46% | 81.19% | 83.75% | 84.16% | 0% |
| EPS (Diluted) | 0.91 | 0.81 | -0.97 | 0.29 | 1.68 | 1.46 | 0.01 | 1.40 | 1.48 | 1.51 | 1.71 | 1.52 | 1.71 | 1.26 | 1.64 | 1.35 | 0.87 | -0.21 |
| EPS Growth % | 2766.67% | 183.51% | -434.48% | -82.74% | 15.07% | - | -99.32% | -5.41% | -1.99% | -11.7% | 12.5% | -11.11% | 35.71% | -23.17% | 21.48% | 55.17% | 514.29% | - |
| EPS (Basic) | - | 0.81 | -0.97 | 0.29 | 1.77 | 1.48 | 0.01 | 1.41 | 1.52 | 1.54 | 1.73 | 1.53 | 1.72 | 1.26 | 1.64 | 1.35 | 0.87 | -0.21 |
| Diluted Shares Outstanding | 139.71M | 138.87M | 139.67M | 141.28M | 165.5M | 168.4M | 148M | 175.79M | 153.82M | 101.23M | 73.31M | 59.27M | 43.68M | 35.68M | 22.65M | 18.84M | 12.68M | 10.5M |
CRE valuation and liquidity
As reported in recent financial filings, ARI's revenue trajectory remains challenged, with a 0.8% year-over-year decline in 2026Q1, suggesting that the company's ability to originate new loans is currently insufficient to offset the natural runoff and potential repayments within its existing commercial mortgage portfolio.
The lack of meaningful top-line growth indicates that management is likely prioritizing defensive capital preservation over aggressive portfolio expansion. This trend suggests that the firm may be struggling to find attractive risk-adjusted opportunities in the current high-rate environment, potentially limiting future interest income upside.
Based on the provided income statement data, NOI margins have experienced significant volatility, dropping to 23.4% in 2026Q1 from historical peaks exceeding 80%, which implies that rising credit loss provisions or asset-level impairments are materially eroding the profitability of the underlying loan book.
The sharp compression in NOI margins suggests that the company is absorbing substantial non-cash charges related to the credit quality of its borrowers. Investors should monitor whether these margin pressures are transitory accounting adjustments or indicative of a structural deterioration in the collateral backing the mezzanine and subordinate debt positions.
According to the company's quarterly disclosures, FFO per share has fluctuated wildly, ranging from a negative $0.70 in 2024Q1 to a positive $0.38 in 2025Q3, which highlights the inherent difficulty in relying on headline FFO as a consistent indicator of dividend-paying capacity for this mortgage REIT.
The extreme variance in FFO suggests that non-recurring items and significant CECL reserve adjustments are heavily distorting the earnings profile. This volatility warrants further investigation into the sustainability of the dividend, as the gap between FFO and AFFO often reveals the true cash-generating capability of the portfolio.
Based on the reported figures, the frequent divergence between FFO and AFFO, particularly the negative AFFO observed in multiple quarters like 2025Q2, suggests that the company's earnings quality may be overstated by accounting treatments that do not fully reflect the cash-basis reality of its loan investments.
The recurring negative AFFO figures imply that the company may be recognizing interest income that is not being collected in cash, potentially through PIK arrangements or other non-cash accruals. This raises concerns regarding the actual liquidity available to support distributions, suggesting that the reported earnings may not be as robust as they appear on a GAAP basis.
Quick answers to the most common questions about buying ARI stock.
For fiscal year 2025, Apollo Commercial Real Estate Finance, Inc. (ARI) reported total revenue of $710.5M. This represents a 119309.4% increase compared to $0.6M in 2009.
Apollo Commercial Real Estate Finance, Inc. (ARI) is profitable, generating $126.7M in net income for the fiscal year ending 2025 with a net profit margin of 17.8%.
Apollo Commercial Real Estate Finance, Inc. (ARI) reported an operating income of $464.4M, resulting in an operating profit margin of 65.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Apollo Commercial Real Estate Finance, Inc. (ARI) generated $568.8M in gross profit for the year, representing a gross profit margin of 80.1%. This demonstrates the company's core pricing power and production efficiency.