[Management View]
Key metrics: $1 billion in new loans committed in Q3 2025, bringing year-to-date originations to $3 billion. Total loan portfolio carrying value at $8.3 billion. Residential loans comprise 31% of the portfolio. GAAP net income of $48 million, or $0.34 per diluted share. Distributable earnings of $42 million, or $0.30 per share. Book value per share at $12.73.
Strategic priorities: Sustained origination pace, capital redeployment from maturing or exited focus assets, and ongoing funding diversification efforts.

[Outlook]
Performance guidance: Continued strong origination activity and progress with focus assets. Expectations for resolution of major focus assets and additional capital rotation into 2026.
Future plans: Targeted sales timing for 111 West 57th Street in early 2026. Brook exit expected in late third or early fourth quarter of 2026. Liberty Center disposition timing projected for late Q1, early Q2 of 2026.

[Financial Performance]
YoY/QoQ trends: GAAP net income of $48 million, or $0.34 per diluted share for 2025. Distributable earnings were $42 million, or $0.30 per share for 2025. Run rate distributable earnings were $32 million, or $0.23 per share for 2025, slightly below the dividend level due to timing of capital redeployment. Book value per share increased by $0.14 at quarter end.

[Q&A Highlights]
Question 1: As you think about the timeline to monetizing the Brook and the pacing of future sales at 111 West 57th?
Answer: At 111 West 57th, we are down to three units, including a quadplex and a penthouse. Foot traffic and interest remain good. We hope to finalize sales in the early part of next year. For the Brook, if lease-up continues as expected, we aim to bring the asset to market in late spring or early summer next year, with a potential closing in late third or early fourth quarter.

Question 2: What do you think is the right leverage level for this business?
Answer: Leverage has increased as we pivoted to more senior loans. We aim to run the business around four terms of leverage when fully deployed and capital efficient, including return of capital from focus assets.

Question 3: Any update on the Liberty Center asset?
Answer: The parent of the movie theater at Liberty Center filed for bankruptcy. We are involved in the process and will assess timing of an exit probably late Q1, early Q2 of next year.

Question 4: What is driving the elevated level of repayments, and will it continue?
Answer: Repayments are occurring due to open capital markets and improved operating performance. We expect a healthy pace of repayments to continue, though it will be lumpy quarter to quarter.

Question 5: On 111 West 57th, total exposure was up slightly this quarter. Is that due to increased capitalized cost on development spend?
Answer: Yes, it was due to ongoing TI in connection with the bottom lease. This is consistent with our underwriting expectations.

Question 6: What's the difference between the debt listed in the slide deck and capitalized financing and construction costs in the 10-Q for Brooklyn multifamily?
Answer: We will review the map and get back after the call.

Question 7: Any update on the Mayflower and Atlanta hotels?
Answer: The Mayflower hotel continues to perform well, with some seasonality in Q3. We are focusing on optimizing expenses and expect more net cash flow uplift.

Question 8: How do you envision the size of the loan portfolio trending into 2026?
Answer: Growth will come from deploying unlevered capital from focus assets into senior loans with full leverage. The impact will be less dramatic for assets like the Brook, which is already levered as a construction deal.

Question 9: Is there something about the hospitality sector that you're finding more attractive?
Answer: We have always been active in the hotel front. These deals were attractive due to size and in-place cash flow. Hotels will continue to be part of the portfolio.

Question 10: Can you give an update on what you're seeing in your office portfolio?
Answer: Office trends vary by city. New York and London are seeing positive leasing momentum, while Chicago's performance is mixed by asset and building age.

Question 11: Could you see a tick up in repayment rates now that rates are starting to come down?
Answer: Repayments are driven by business plan achievements and market conditions rather than high expensive debt from COVID or pre-COVID. We expect a normal pace of repayments.

[Sentiment Analysis]
Tone of analysts/management: Analysts were focused on asset monetization timelines, leverage levels, and repayment trends. Management provided detailed responses, indicating confidence in ongoing strategies and market conditions.

[Quarterly Comparison]
| Metric | Q3 2025 | Q2 2025 |
|---------------------------------|---------------|---------------|
| New Loan Originations | $1 billion | $1 billion |
| Total Loan Portfolio | $8.3 billion | $8.3 billion |
| GAAP Net Income | $48 million | $48 million |
| Distributable Earnings | $42 million | $42 million |
| Book Value Per Share | $12.73 | $12.59 |
| Weighted Average Unlevered Yield| 7.7% | 7.7% |
| Leverage Ratio | 3.8x | 4.1x |

[Risks and Concerns]
Risks and concerns: Uncertainty in the timing of asset sales, particularly for Liberty Center. Potential market fluctuations affecting leasing and repayment trends. Dependency on capital market conditions for ongoing origination and repayment activities.

[Final Takeaway]
Apollo Commercial Real Estate Finance demonstrated strong loan origination activity and progress with focus assets in Q3 2025. The company is on track for a record year of commercial real estate loan originations, supported by a robust pipeline and strategic capital redeployment. Management remains confident in their ability to navigate market conditions and achieve targeted asset sales and leverage levels. Investors should monitor the timing of key asset sales and market trends impacting the real estate sector.