The Apollo-managed non-traded REIT nearly doubled its real estate debt portfolio while expanding property holdings to 14 assets across industrial, multifamily, and retail sectors.

March 11, 2026

Apollo Realty Income Solutions Posts Strong 2025 Growth, Raises $1.5B Since Inception

The Apollo-managed non-traded REIT nearly doubled its real estate debt portfolio while expanding property holdings to 14 assets across industrial, multifamily, and retail sectors.

Company Overview and Capital Activity

Apollo Realty Income Solutions, a non-listed real estate investment trust managed by an affiliate of Apollo Global Management, disclosed its annual results for the fiscal year ended December 31, 2025, showing meaningful growth across its investment portfolio, capital raising efforts, and income generation.

The Maryland-based company, which focuses on diversified income-oriented commercial real estate primarily in the United States, reported net income of approximately $67.5 million for the year, up from $50.5 million in the prior year. The increase was driven by expanding real estate holdings and a growing portfolio of real estate debt investments.

Since inception, the company has raised cumulative net proceeds of approximately $1.5 billion through its public and private offerings. During 2025 alone, the firm brought in roughly $463.7 million in net proceeds, including $11.2 million through its distribution reinvestment plan. As of early March 2026, the company had approximately 70.1 million shares of common stock outstanding across seven share classes, each carrying different fee structures for selling commissions, servicing fees, and management fees.

The company also actively managed its share repurchase program during the year, buying back shares totaling approximately $33.8 million. The firm satisfied all repurchase requests submitted during 2025, though repurchases remain subject to monthly and quarterly caps of 2% and 5% of aggregate net asset value, respectively.

Portfolio Expansion

On the real estate equity side, the company acquired nine properties during 2025 for a combined cost of roughly $471.2 million, including seven industrial assets and two multifamily communities. These acquisitions brought the total portfolio to 14 properties as of year-end. Industrial assets made up about 61% of total real estate fair value, with multifamily representing 31% and retail accounting for the remaining 8%.

The industrial portfolio, comprising approximately 3.5 million square feet across 10 properties, was fully leased at year-end. The multifamily portfolio included 712 units across three communities with an average occupancy rate of 92%. Properties are geographically concentrated in the Southeast, Midwest, Northeast, and Southwest regions.

The company’s real estate debt portfolio also expanded substantially. As of December 31, 2025, the firm held 57 positions in commercial mortgage loans, mezzanine loans, and real estate-related securities with an aggregate fair value of approximately $1.2 billion, up from $887.2 million at the end of 2024. During the year, the company committed $471.7 million to new commercial mortgage and mezzanine loans, purchased $73.2 million in real estate-related securities, and received $263.6 million in loan repayments.

The debt portfolio was diversified across property types, with multifamily and data center collateral each representing about 30% of the loan book, followed by self-storage, mixed-use, and hotel properties.

Financial Performance

Total rental revenue reached $37.0 million in 2025, up from $21.7 million the prior year, reflecting both full-year contributions from properties acquired in 2024 and nine new acquisitions during the year. Income from investments in real estate debt totaled $91.4 million, a significant jump from $62.1 million in 2024, driven by higher loan balances and origination activity.

Operating expenses also grew as the portfolio scaled. Key increases included:

• Rental property operating costs rose to $8.5 million from $5.0 million
• Management fees increased to $12.2 million from $7.8 million
• Interest expense nearly doubled to $20.1 million, reflecting increased borrowing across repurchase facilities and new mortgage financing

The company declared total distributions of approximately $72.1 million during 2025, with 74% paid in cash and 26% reinvested in shares. Annualized distribution rates ranged from 4.2% for Class S shares to 5.4% for Class A-III and Class F-I shares. Year-to-date total returns, excluding upfront commissions, ranged from 4.9% to 6.9% depending on share class.

Funds from operations reached $84.0 million, while adjusted funds from operations came in at $80.5 million, both representing substantial increases over the prior year.

Leverage and Liquidity

The company maintained a conservative balance sheet with a leverage ratio of just 0.3 times, calculated as the fair value of debt divided by net asset value. Total indebtedness stood at approximately $505.9 million, consisting of $156.3 million in fixed-rate mortgages and $349.6 million in variable-rate secured debt arrangements.

During 2025, the company expanded its financing capacity by entering into a $500 million repurchase agreement with Barclays and a revolving facility with BofA Securities, supplementing its existing JPMorgan facility that was upsized to $400 million. As of year-end, the firm had $590.4 million in undrawn capacity and $58.5 million in unrestricted cash.

The company’s target leverage ratio after its initial ramp-up period is approximately 65% of gross real estate assets, suggesting significant capacity for additional borrowing as the portfolio matures.

Net Asset Value and Outlook

Total net asset value stood at approximately $1.54 billion as of December 31, 2025. NAV per share varied by class, ranging from roughly $20.98 for Class F-I shares to $21.62 for Class E shares. NAV has grown steadily since operations commenced in late 2022, with all share classes showing consistent appreciation.

The company is externally managed by an adviser that is an indirect subsidiary of Apollo Global Management, which reported approximately $938.4 billion in assets under management as of year-end 2025. The firm has no employees and relies entirely on the adviser for investment sourcing, management, and operations.

Looking ahead, the company plans to continue selling shares monthly through its follow-on offering and deploying capital into stabilized commercial real estate and selective debt opportunities. Subsequent to year-end, the firm acquired an additional industrial property in Georgia for approximately $79.7 million and received about $110 million in loan repayments.