Apollo Commercial Real Estate Finance, Inc.
For the period ended Jun 30, 2025. Filed Jul 29, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 29, 2025
ARI$2.32-3.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-24.
0000950170-25-058066
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-29.
0000950170-25-099645
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 152 previous paragraphs and 159 current paragraphs.
110 unchanged; 31 reworded; 16 added; 11 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 14 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
Net interest income increased by $3.6 million during the three months ended June 30, 2025, compared to the prior quarter, primarily due to loan portfolio growth driven by increased origination activity. The net increase was partially offset by higher debt balances on our secured debt arrangements during the same comparative period. Refer to "Note 4 – Commercial Mortgage Loans, Subordinate Loans and Other Lending Assets, Net" for additional detail.
Current report
Valuation allowance, loans and other lending assets held for sale
Current report
As of June 30, 2025 and March 31, 2025, we held a promissory note classified as held for sale. Notes held for sale are carried at the lower of amortized cost or fair value less costs to sell unless the fair value option is elected at origination. As of March 31, 2025, the note’s fair value was equal to its amortized cost and no valuation allowance was recorded during the three months ended March 31, 2025.
Current report
Net realized loss on investments
Current report
During the six months ended June 30, 2024, we recorded a $0.7 million net realized loss on investments related to the sale of a commercial mortgage loan collateralized by a hotel property located in Honolulu, HI. The loan was previously classified as held for sale and was sold at a price of 99.5%.
Current report
Valuation allowance, loans and other lending assets held for sale
Current report
During the three months ended June 30, 2025, we recorded a fair value adjustment of $1.2 million on a promissory note classified as held for sale (representing the difference between the note’s amortized cost and the note’s fair value as of June 30, 2025). The promissory note was subsequently sold in July 2025 at a price of 97.0%, upon which we reversed the valuation allowance and recorded an equivalent realized loss. Refer to "Note 4 - Commercial Mortgage Loans, Subordinate Loans and Other Lending Assets, Net" and "Note 3 – Fair Value Disclosure" further discussion.
Current report
During the six months ended June 30, 2025, we recorded a net increase in our General CECL Allowance of $7.1 million. The increase was primarily driven by the effect of loan originations, which was partially offset by the favorable impacts of portfolio seasoning.
Current report
As of June 30, 2025, we held one senior secured term loan, our 2030 Term Loan, which represents the refinancing of our 2026 and 2028 Term Loans that were outstanding as of December 31, 2024. Refer to "Note 8 – Senior Secured Term Loans, Net" for discussion of the refinance.
Current report
Supplemental U.S. Federal Income Tax Considerations
Current report
The following discussion supplements and updates the disclosures under the heading "U.S. Federal Income Tax Considerations" in each of the prospectus dated May 6, 2024, contained in our Registration Statement on Form S-3 (File No. 333-279158) filed with the SEC on May 6, 2024 and the prospectus dated November 3, 2023, contained in our Registration Statement on Form S-3 (File No. 333-275310) (the "Existing Tax Disclosure"). Capitalized terms herein that are not otherwise defined shall have the same meaning as when used in the Existing Tax Disclosure.
Current report
On July 4, 2025, H.R. 1, informally known as the One Big Beautiful Bill Act (the "OBBB"), was enacted. The OBBB makes major changes to the Code, including some provisions of the Code that affect the taxation of REITs and their investors. In particular:
Current report
For taxable years beginning on or after January 1, 2026, the OBBB relaxed the REIT asset test requirement with respect to taxable REIT subsidiaries, providing that not more than 25% (relaxed from 20%) of the gross value of a REIT’s assets may be represented by securities of one or more taxable REIT subsidiaries.
Current report
The OBBB permanently extended the pass-through qualified business income deduction, generally allowing individuals to deduct 20% of the aggregate amount of ordinary REIT dividends distributed by a REIT. This deduction was due to expire for tax years beginning on or after January 1, 2026.
Current report
The OBBB permanently extended the maximum U.S. federal income tax rate of 37%, which applies to ordinary income recognized by individuals and other non-corporate U.S. stockholders, for tax years beginning on or after January 1, 2026.
Current report
To the extent the information set forth in the Existing Tax Disclosure is inconsistent with this supplemental information, this supplemental information supersedes the information in the Existing Tax Disclosure. This supplemental information is provided on the same basis and subject to the same qualifications as are set forth in the first six paragraphs of the Existing Tax Disclosure as if those paragraphs were set forth in this Quarterly Report on Form 10-Q.
Removed paragraphs (11)
Previous report
Gain (loss) on interest rate hedging instruments
Previous report
During the three months ended March 31, 2025, we recorded a net loss of $42.0 thousand on our interest rate caps compared to a net gain of $0.1 million recorded during the three months ended December 31, 2024. The net loss was primarily driven by unrealized losses attributable to a decline in fair value of our construction financing interest rate cap as it approaches its October 1, 2025 maturity. These unrealized losses were partially offset by realized gains, attributable to SOFR exceeding the interest rate cap's strike rate during the three months ended March 31, 2025 and the three months ended December 31, 2024.
Previous report
Valuation allowance, commercial mortgage loan held for sale
Previous report
During the three months ended March 31, 2024, we reclassified one of our commercial mortgage loans collateralized by a hotel property located in Honolulu, HI to held for sale. Loans held for sale are carried at the lower of amortized cost or fair value less costs to sell. Accordingly, we recorded a valuation allowance of $0.7 million to carry the loan at its fair value which reflected the agreed upon selling price of 99.5%.
Previous report
During the three months ended March 31, 2024, we recorded a net increase in our General CECL Allowance of $5.7 million, primarily driven by an increase in our view of the remaining expected term of certain of our loans and an increase to the historical loss rate derived from Trepp's data.
Previous report
Gain (loss) on interest rate hedges
Previous report
During the three months ended March 31, 2025, we recorded a net loss of $42.0 thousand on our interest rate caps. The net loss was primarily driven by unrealized losses attributable to a decline in fair value of our construction financing interest rate cap as it approaches its October 1, 2025 maturity. These unrealized losses were partially offset by realized gains, attributable to SOFR exceeding the interest rate cap’s strike rate.
Previous report
During the three months ended March 31, 2024, we recorded a net gain of $0.4 million on our interest rate cap. The net gain was primarily driven by realized gains as SOFR exceeded the strike rate on our construction financing interest rate cap. These realized gains were partially offset by unrealized losses, caused by the interest rate cap’s decline in fair value as it approached maturity.
Previous report
Refer to "Note 10 – Derivatives" for further discussion of interest rate caps.
Previous report
The following table shows the changes in our book value per share:
Previous report
We believe that presenting book value per share with sub-totals prior to the CECL Allowances and depreciation is useful for investors for various reasons, including, among other things, analyzing our compliance with financial covenants related to tangible net worth and debt-to-equity under our secured debt arrangements and senior secured term loan, which permit us to add the General CECL Allowance to our GAAP stockholders' equity. Given that our lenders consider book value per share prior to the General CECL Allowance as an important metric related to our debt covenants, we believe disclosing book value per share prior to the General CECL Allowance is important to investors such that they have the same visibility. We further believe that presenting book value before depreciation and amortization is useful to investors since it is a non-cash expense included in net income and is not representative of our core business and ongoing operations.
Reworded paragraphs (31)
Previous wording
We are externally managed and advised by the Manager, an indirect subsidiary of Apollo, a global, high-growth alternative asset manager with assets under management of approximately $751.0 billion as of December 31, 2024.
Current wording
We are externally managed and advised by the Manager, an indirect subsidiary of Apollo, a global, high-growth alternative asset manager with assets under management of approximately $785.2 billion as of March 31, 2025.
Previous wording
In March 2024, the SEC adopted amendments to its rules under the Securities Act and the Exchange Act that require disclosure of certain climate-related information in registration statements and annual reports, when material. In April 2024, the SEC chose to stay its newly adopted climate disclosure rules, pending the completion of judicial review. We are currently evaluating the impact of the new rule, if the stay is lifted, on our disclosures.
Current wording
In March 2024, the SEC adopted amendments to its rules under the Securities Act and the Exchange Act that require disclosure of certain climate-related information in registration statements and annual reports, when material. In April 2024, the SEC chose to stay its newly adopted climate disclosure rules, pending the completion of judicial review of certain legal challenges. In March 2025, the SEC voted to end its defense of the new rules. We are continuing to monitor the developments pertaining to the new rules and to evaluate the impact of these rules, if the stay is lifted, on our disclosures.
Previous wording
For the three months ended March 31, 2025 and 2024, our net income (loss) available to common stockholders was $22.9 million, or $0.16 per diluted share of common stock, and ($107.6) million, or ($0.76) per diluted share of common stock, respectively.
Current wording
For the three months ended June 30, 2025 and 2024, our net income available to common stockholders was $17.7 million, or $0.12 per diluted share of common stock, and $32.7 million, or $0.23 per diluted share of common stock, respectively.
Previous wording
For the three months ended March 31, 2025, we recorded net income related to real estate owned of $3.1 million, compared to net income of $4.4 million for the three months ended December 31, 2024. The decrease in net income was primarily due to the seasonality of the D.C. Hotel's operations which led to $1.3 million lower net income from operations, prior to depreciation, during the three months ended March 31, 2025 as compared to the three months ended December 31, 2024. Refer to "Note 5 – Real Estate Owned" for further discussion of operations related to real estate owned.
Current wording
For the three months ended June 30, 2025, we recorded net income related to real estate owned of $4.2 million, compared to net income of $3.1 million for the three months ended March 31, 2025. The increase in net income was primarily due to the seasonality of the D.C. Hotel's operations which led to $1.0 million higher net income from operations, prior to depreciation, during the three months ended June 30, 2025 as compared to the three months ended March 31, 2025. Refer to "Note 5 – Real Estate Owned" for further discussion of operations related to real estate owned.
Previous wording
Our General CECL Allowance increased by $4.0 million during the three months ended March 31, 2025, primarily driven by a more adverse macroeconomic outlook as well as loan originations. The increase was partially offset by the favorable impacts of portfolio seasoning. Comparatively, our General CECL Allowance decreased by $1.3 million during the three months ended December 31, 2024, primarily driven by the favorable impacts of portfolio seasoning as well as earlier than expected loan repayments. The decrease was partially offset by the effects of loan originations.
Current wording
Our General CECL Allowance increased by $3.1 million during the three months ended June 30, 2025, primarily driven by the effect of loan originations as well as extending expected loan repayment dates for certain of our loans. The increase was partially offset by the favorable impacts of portfolio seasoning. Comparatively, our General CECL Allowance increased by $4.0 million during the three months ended March 31, 2025, primarily driven by a more adverse macroeconomic outlook as well as the effects of loan originations. The increase was partially offset by the favorable impacts of portfolio seasoning.
Previous wording
Refer to "Note 4 - Commercial Mortgage Loans, Subordinate Loans and Other Lending Assets, Net" and "Note 3 – Fair Value Disclosure" for additional detail.
Current wording
During the three months ended June 30, 2025, we recorded a fair value adjustment of $1.2 million (representing the difference between the note’s amortized cost and the note’s fair value as of June 30, 2025). The note was subsequently sold in July 2025 at a price of 97.0%, upon which we reversed the valuation allowance and recorded an equivalent realized loss. Refer to "Note 4 – Commercial Mortgage Loans, Subordinate Loans and Other Lending Assets, Net" and "Note 3 – Fair Value Disclosure" further discussion.
Previous wording
Foreign currency gains and losses on derivative instruments are evaluated on a combined basis and the net impact for the three months ended March 31, 2025 and the three months ended December 31, 2024 were net gains of $1.6 million and $5.7 million, respectively. The net gain for the three months ended March 31, 2025 was lower than the net gain for three months ended December 31, 2024 predominantly due to higher forward point estimates for the three months ended March 31, 2025.
Current wording
Foreign currency gains and losses on derivative instruments are evaluated on a combined basis and the net impact for the three months ended June 30, 2025 and the three months ended March 31, 2025 were a net loss of $8.4 million and a net gain of $1.6 million, respectively. The net loss for the three months ended June 30, 2025 compared to the net gain for three months ended March 31, 2025 was predominantly due to higher forward point estimates for the three months ended June 30, 2025.
Previous wording
The following table sets forth information regarding our condensed consolidated results of operations and certain key operating metrics for the three months ended March 31, 2025 and 2024 ($ in thousands):
Current wording
The following table sets forth information regarding our condensed consolidated results of operations and certain key operating metrics for the six months ended June 30, 2025 and 2024 ($ in thousands):
Previous wording
Net interest income decreased by $4.0 million during the three months ended March 31, 2025 compared to the three months ended December 31, 2024. The net decrease was primarily attributable to lower average index rates and a lower average loan balance during the three months ended March 31, 2025 compared to the three months ended December 31, 2024. Refer to "Note 4 – Commercial Mortgage Loans, Subordinate Loans and Other Lending Assets, Net" for additional detail.
Current wording
Net interest income decreased by $25.9 million during the six months ended June 30, 2025 compared to the six months ended June 30, 2024. This decrease was primarily driven by lower average index rates and a lower average loan balance in 2025 compared to 2024, which was partially attributable to the realization of a loss on investment during the third quarter of 2024.
Previous wording
Net interest income decreased by $17.2 million during the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The decrease in net interest income was primarily driven by lower average index rates and a lower average loan balance during three months ended March 31, 2025 compared to the three months ended March 31, 2024. Additionally, during the second quarter of 2024 we modified two of our loans to convert from floating rate loans to fixed rate loans, which resulted in a decrease in net interest income earned during the three months ended March 31, 2025 compared to the three months ended March 31, 2024. Refer to "Note 4 – Commercial Mortgage Loans, Subordinate Loans and Other Lending Assets, Net" for additional detail.
Current wording
Additionally, during the second quarter of 2024 we modified two of our commercial mortgage loans to convert from floating rate loans to fixed rate loans, which resulted in a decrease in net interest income earned during the six months ended June 30, 2025 compared to the six months ended June 30, 2024. Refer to "Note 4 – Commercial Mortgage Loans, Subordinate Loans and Other Lending Assets, Net" for additional detail.
Previous wording
Net income related to real estate owned increased by $3.8 million during the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase was primarily attributable to increased net operating income from the D.C. hotel, driven by higher occupancy levels during the three months ended March 31, 2025 versus the same period in 2024. Higher net income from the Atlanta Hotel for the three months ended March 31, 2025, compared to the three months ended March 31, 2024 also contributed to the increase. On March 31, 2024, we recorded $3.6 million of catch-up depreciation upon reclassifying the Atlanta Hotel from held-for-sale to held-for-investment, representing the amount that would have been recorded if the asset had remained held for investment throughout 2023 and the first quarter of 2024.
Current wording
Net income related to real estate owned increased by $2.7 million during the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The increase was primarily attributable to higher net income from the Atlanta Hotel for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, as net income for the 2024 period was reduced by $3.6 million of catch-up depreciation recorded in the first quarter of 2024. This charge was recorded in connection with the reclassification of the property from held-for-sale to held-for-investment and represented depreciation that would have been recorded had the property been classified as held-for-investment throughout 2023 and the first quarter of 2024.
Previous wording
Management fees expense decreased by $0.9 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The decrease was primarily due to lower Stockholders' Equity (as defined in the Management Agreement) during the three months ended March 31, 2025.
Current wording
Management fees expense decreased by $1.7 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The decrease was primarily due to lower Stockholders' Equity (as defined in the Management Agreement) during the six months ended June 30, 2025.
Previous wording
During the three months ended March 31, 2025, there was no change in our Specific CECL Allowance. Comparatively, during the three months ended March 31, 2024, we recorded a $142.0 million Specific CECL Allowance related to a mezzanine loan secured by an ultra-luxury residential property in Manhattan, NY, primarily attributable to a reduction in list pricing of remaining units and slower sales pace at the property.
Current wording
During the six months ended June 30, 2025, there was no change in our Specific CECL Allowance. Comparatively, during the six months ended June 30, 2024, we recorded a $149.5 million Specific CECL Allowance related to two of our subordinate loans. This amount consisted of: (i) a $142.0 million allowance recorded in the first quarter of 2024 for a mezzanine loan secured by an ultra-luxury residential property in Manhattan, NY; and (ii) a $7.5 million allowance recorded during the second quarter of 2024 for a subordinate loan secured by our interest in a Class A office building in Troy, MI.
Previous wording
Decrease (increase) in General CECL Allowance, net
Current wording
Increase in General CECL Allowance, net
Previous wording
During the three months ended March 31, 2025, we recorded a net increase in our General CECL Allowance of $4.0 million. The increase was primarily driven by a more adverse macroeconomic outlook as well as the effects of loan originations. The increase was partially offset by the favorable impacts of portfolio seasoning.
Current wording
During the six months ended June 30, 2024, we recorded a net increase in our General CECL Allowance of $8.4 million, primarily driven by new loan originations as well as a more adverse macroeconomic outlook. The increase was partially offset by the favorable impacts of portfolio seasoning.
Previous wording
Foreign currency gains and losses on derivative instruments are evaluated on a combined basis and the net impact for the three months ended March 31, 2025 and three months ended March 31, 2024 was a net gain of $1.6 million and $3.8 million, respectively. The net gain for the three months ended March 31, 2025 was lower than the net gain for three months ended March 31, 2024 predominantly due to higher forward point estimates for the three months ended March 31, 2025.
Current wording
Foreign currency gains and losses on derivative instruments are evaluated on a combined basis and the net impact for the six months ended June 30, 2025 and six months ended June 30, 2024 was a net loss of $6.8 million and a net gain of $8.9 million, respectively. The net loss for the three months ended June 30, 2025, compared to the net gain for six months ended June 30, 2024, was predominantly due to higher forward point estimates for the three months ended June 30, 2025.
Previous wording
For the three months ended March 31, 2025, our Distributable Earnings were $33.2 million, or $0.24 per share, as compared to $50.5 million, or $0.35 per share, respectively, for the same period in the prior year.
Current wording
For the three months ended June 30, 2025 and March 31, 2025, our Distributable Earnings were $36.4 million, or $0.26 per share, and $33.2 million, or $0.24 per share, respectively.
Previous wording
Unvested RSUs are net of incremental shares assumed repurchased under the treasury stock method, if dilutive. There were 352,814 incremental shares included in 2025 and no incremental shares included in 2024.
Current wording
Unvested RSUs are net of incremental shares assumed repurchased under the treasury stock method, if dilutive. For the three months ended June 30, 2025 and March 31, 2025, there were 265,295 and 352,814 incremental shares included, respectively.
Previous wording
As a REIT, U.S. federal income tax law generally requires us to distribute annually at least 90% of our REIT taxable income, without regard to the deduction for dividends paid and excluding net capital gains, and that we pay tax at regular corporate rates to the extent that we annually distribute less than 100% of our net taxable income. Given these requirements and our belief that dividends are generally one of the principal reasons stockholders invest in a REIT, we generally intend over time to pay dividends to our stockholders in an amount equal to our net taxable income, if and to the extent authorized by our board of directors. Distributable Earnings is a key factor considered by the board of directors in setting the dividend and as such we believe Distributable Earnings is useful to investors.
Current wording
As a REIT, U.S. federal income tax law generally requires us to distribute annually at least 90% of our REIT taxable income, without regard to the deduction for dividends paid and excluding net capital gains, and that we pay tax at regular corporate rates to the extent that we annually distribute less than 100% of our net taxable income. Given these requirements and our belief that dividends are generally one of the principal reasons stockholders invest in a REIT, we generally intend over time to pay dividends to our stockholders in an amount equal to our net taxable income, if and to the extent authorized by our board of directors.
Previous wording
During the three months ended March 31, 2025, we committed $650.2 million of capital to new loans ($460.5 million was funded at closing), and provided $72.9 million of add-on fundings. During the three months ended March 31, 2025, we received $93.4 million in loan repayments and sales.
Current wording
During the six months ended June 30, 2025, we committed $2.0 billion of capital to new loans ($1.4 billion was funded at closing), and provided $467.2 million of add-on fundings. During the six months ended June 30, 2025, we received $724.0 million in loan repayments and sales.
Previous wording
Gross of deferred financing costs of $10.0 million.
Current wording
Gross of deferred financing costs of $8.5 million.
Previous wording
Our average asset and debt balances for the three months ended March 31, 2025 were ($ in thousands):
Current wording
Our average asset and debt balances for the six months ended June 30, 2025 were ($ in thousands):
Previous wording
$6.1 million of the General CECL Allowance for 2025 is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheets.
Current wording
$5.1 million of the General CECL Allowance for 2025 is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheets.
Previous wording
At March 31, 2025, our debt-to-equity ratio was 3.5 and our portfolio was comprised of $7.3 billion of commercial mortgage loans and $0.4 billion of subordinate loans. In order to achieve our return on equity, we generally finance our mortgage loans with 2.0 to 3.0 turns of leverage and generally do not finance our subordinate loan portfolio given built-in inherent structural leverage. Consequently, depending on our portfolio mix, our debt-to-equity ratio may exceed our previously disclosed thresholds.
Current wording
At June 30, 2025, our debt-to-equity ratio was 4.1 and our portfolio was comprised of $8.5 billion of commercial mortgage loans and $0.1 billion of subordinate loans. In order to achieve our return on equity, we generally finance our mortgage loans with 2.0 to 3.0 turns of leverage and generally do not finance our subordinate loan portfolio given built-in inherent structural leverage. Consequently, depending on our portfolio mix, our debt-to-equity ratio may exceed our previously disclosed thresholds.
Previous wording
Our current debt obligations consist of $1.3 billion, at face value, of corporate debt, $5.2 billion of secured debt arrangements, and $348.2 million of debt related to real estate owned, held for investment. Our corporate debt includes $759.3 million of term loan borrowings and $500.0 million of senior secured notes. Our secured debt arrangements are generally term-matched to the underlying loans and we anticipate repayments of $1.2 billion of secured debt arrangements in the short term. Specifics about our secured debt arrangements and corporate debt maturities and obligations are discussed below.
Current wording
Our current debt obligations consist of $1.3 billion, at face value, of corporate debt, $6.2 billion of secured debt arrangements, and $378.6 million of debt related to real estate owned, held for investment. Our corporate debt includes $750.0 million of term loan borrowings and $500.0 million of senior secured notes. Our secured debt arrangements are generally term-matched to the underlying loans, and we anticipate repayments of $1.9 billion of secured debt arrangements in the short term. Specifics about our secured debt arrangements and corporate debt maturities and obligations are discussed below.
Previous wording
In addition to our debt obligations, as of March 31, 2025, we had $989.2 million of unfunded loan commitments. We expect that approximately $592.9 million will be funded to existing borrowers in the short term.
Current wording
In addition to our debt obligations, as of June 30, 2025, we had $1.0 billion of unfunded loan commitments. We expect that approximately $666.7 million will be funded to existing borrowers in the short term.
Previous wording
As of March 31, 2025, we had $166.4 million of cash on hand, $3.8 million of loan proceeds held by servicer and held approximately $444.3 million of unencumbered assets. We also had $47.5 million of available borrowings under our financing arrangements based on existing collateral and $114.0 million of additional capacity on our construction financing secured by our Brooklyn Multifamily Development property which is available to fund future construction costs.
Current wording
As of June 30, 2025, we had $177.6 million of cash on hand, $4.5 million of loan proceeds held by servicer, and $25.7 million of available borrowings under our financing arrangements based on existing collateral. We held approximately $310.5 million of unencumbered assets and $83.6 million of additional capacity on our construction financing secured by our Brooklyn Multifamily Development property which is available to fund future construction costs.
Previous wording
As of March 31, 2025, we had eight secured credit counterparties through wholly-owned subsidiaries.
Current wording
As of June 30, 2025, we had seven secured credit counterparties through wholly-owned subsidiaries.
Previous wording
As of March 31, 2025, we had £724.7 million, €493.2 million, and kr2.0 billion ($1.7 billion assuming conversion into USD as of March 31, 2025) of borrowings outstanding under the Barclays Private Securitization secured by certain of our commercial mortgage loans.
Current wording
As of June 30, 2025, we had £917.6 million, €311.9 million, and kr2.0 billion ($1.8 billion assuming conversion into USD as of June 30, 2025) of borrowings outstanding under the Barclays Private Securitization secured by certain of our commercial mortgage loans.
Previous wording
Please refer to "Note 3 – Fair Value Disclosure" and "Note 5 – Assets and Liabilities Related to Real Estate Owned" for more information regarding real estate owned and our valuation methodology as well as "Note 2 – Summary of Significant Accounting Policies" to our consolidated financial statements of our most recent Annual Report on Form 10-K.
Current wording
Please refer to "Note 3 – Fair Value Disclosure" and "Note 5 – Real Estate Owned" for more information regarding real estate owned and our valuation methodology as well as "Note 2 – Summary of Significant Accounting Policies" to our consolidated financial statements of our most recent Annual Report on Form 10-K.
Previous wording
We derive an annual historical loss rate based on a CMBS database with historical losses from 1998 through the first quarter of 2024 provided by Trepp. We apply various filters to arrive at a CMBS dataset most analogous to our current portfolio from which we determine an appropriate historical loss rate. This historical loss rate, and ultimately the General CECL Allowance we derive, is sensitive to the CMBS dataset we select.
Current wording
We derive an annual historical loss rate based on a CMBS database with historical losses from 1998 through the second quarter of 2025 provided by Trepp. We apply various filters to arrive at a CMBS dataset most analogous to our current portfolio from which we determine an appropriate historical loss rate. This historical loss rate, and ultimately the General CECL Allowance we derive, is sensitive to the CMBS dataset we select.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
For the six months ended June 30, 2025 and 2024, our net income (loss) available to common stockholders was $40.6 million, or $0.28 per diluted share of common stock, and $(74.9) million, or $(0.54) per diluted share of common stock, respectively.
Current report — wording carried from elsewhere
Distributable Earnings is a key factor considered by the board of directors in setting the dividend and as such we believe Distributable Earnings is useful to investors.