Apollo Commercial Real Estate Finance (ARI) Company Report

Apollo Commercial Real Estate Finance, Inc. (ARI) has entered into a definitive agreement to sell its entire approximately $9 billion commercial real estate loan portfolio to Athene Holding Ltd. for a purchase price based on 99.7% of total loan commitments. The transaction is subject to shareholder approval and a "go-shop" period until February 21, 2026, with closing expected in the second quarter of 2026.
Following the transaction, ARI expects to have approximately $1.4 billion of net cash and $1.7 billion of common stockholders' equity, which equates to approximately $12.05 per share. The company will retain $466 million in net equity interest in real estate properties as of September 30, 2025.
ARI plans to evaluate new commercial real estate-related strategies and potential M&A opportunities for the remainder of the year. During this period, the annual management fee rate will be reduced by 50% and paid in shares of common stock.
If a new strategy or transaction is not announced by year-end, Apollo intends to recommend exploring all strategic alternatives, including dissolution. ARI intends to declare a $0.25 per share dividend for Q1 2026 and continue quarterly dividends targeting an 8% annualized yield on the post-transaction book value per share.

7 days ago

8-K

ARI announces sale of entire loan portfolio to Athene

ARI

M&A

Dividends

New Projects/Investments

Apollo Commercial Real Estate Finance (ARI) has entered into a definitive agreement to sell its entire loan portfolio to Athene Holding Ltd. for a purchase price based on 99.7% of total loan commitments, excluding two loans totaling $146 million.
The transaction provides ARI with approximately $1.4 billion of deployable cash and represents a compelling ~23% premium to recent stock trading levels.
ARI intends to declare a $0.25 dividend per share for Q1 2026 and target an 8% annualized yield on book value post-transaction.
ARI's management will spend the remainder of 2026 evaluating new commercial real estate-related strategies, with the intention to explore strategic alternatives, including dissolution, if a new strategy or transaction is not announced by year-end 2026.
The management fee structure will be modified, with the base management fee initially 0.75% of stockholders equity (compared to the current 1.5%) payable in common stock under specific return on equity conditions.

7 days ago

Presentation

ARI announces sale of loan portfolio to Athene and strategic repositioning

ARI

M&A

Dividends

New Projects/Investments

Apollo Commercial Real Estate Finance, Inc. (ARI) has entered into a definitive agreement to sell its loan portfolio to Athene for a purchase price of 99.7% based on total loan commitments, excluding two loans with a principal balance of $146 million.
The transaction is expected to provide ARI with approximately $1.4 billion of net cash and result in a common equity book value per share of approximately $12.05. ARI will retain its net equity interest in real estate properties, valued at approximately $466 million as of September 30, 2025.
The sale, which represents a 23% premium to ARI's recent trading levels, was approved by ARI's board and is subject to stockholder approval, with closing expected in the second quarter.
ARI intends to continue paying a quarterly dividend, targeting an approximately 8% annualized yield based on post-transaction book value per share. The company will evaluate new commercial real estate-related strategies by year-end, with Apollo agreeing to a 50% reduction in ARI's annual management fee rate and reimbursing up to $10 million in transaction expenses.

7 days ago

Transcript

ARI Announces Sale of Loan Portfolio to Athene and Strategic Repositioning

ARI

M&A

Dividends

New Projects/Investments

Apollo Commercial Real Estate Finance, Inc. (ARI) has entered into a definitive agreement to sell its loan portfolio to Athene for a purchase price of 99.7% based on total loan commitments, excluding two loans with a principal balance of $146 million.
The transaction is expected to provide ARI with approximately $1.4 billion in net cash, resulting in an estimated common equity book value per share of approximately $12.05.
This sale represents a 23% premium to ARI's recent trading levels. ARI will evaluate new commercial real estate strategies, including M&A, with dissolution as an alternative if no strategy is identified by year-end.
ARI expects to pay a $0.25 per share dividend for Q1 and target an 8% annualized yield based on the post-transaction book value per share. Apollo has also agreed to a 50% reduction in ARI's annual management fee rate.

7 days ago

Transcript

Apollo Commercial Real Estate Finance Announces Sale of Loan Portfolio to Athene

ARI

M&A

Dividends

New Projects/Investments

Apollo Commercial Real Estate Finance (ARI) has entered into a definitive agreement to sell its loan portfolio to Athene for 99.7% of total loan commitments, net of asset-specific CECL reserves, expecting approximately $1.4 billion of net cash.
The transaction is anticipated to result in a common equity book value per share of approximately $12.05 and represents a 23% premium to ARI's recent trading levels.
ARI will retain approximately $466 million in net equity interest in real estate properties and plans to evaluate new commercial real estate strategies, including M&A, with potential dissolution if no strategy is identified by year-end.
Apollo has agreed to a 50% reduction in ARI's annual management fee rate, paid in shares, and will reimburse up to $10 million of ARI's transaction expenses.

7 days ago

Transcript

Apollo Commercial Real Estate Finance Announces Sale of Commercial Real Estate Loan Portfolio

ARI

M&A

New Projects/Investments

Dividends

Apollo Commercial Real Estate Finance, Inc. (ARI) has entered into a definitive agreement to sell its approximately $9 billion commercial real estate loan portfolio to Athene Holding Ltd. for a purchase price based on 99.7% of total loan commitments, net of asset specific CECL reserves.
Following the transaction, ARI expects to have approximately $1.4 billion of net cash and $1.7 billion of common stockholders' equity, equating to approximately $12.05 per share of common stock. The sale is expected to provide a compelling ~23% premium to recent stock trading levels and validates ARI's book value.
ARI intends to declare a $0.25 per share dividend for the first quarter of 2026 and plans to continue paying quarterly dividends, targeting an approximately 8% annualized yield on the post-transaction book value per share.
The company's management will evaluate new commercial real estate-related strategies and potential M&A opportunities to reposition ARI, with the goal of delivering attractive current yield and positioning shares to trade at or above book value. The transaction is expected to close in the second quarter of 2026 and is subject to stockholder approval.

8 days ago

Press Release

Apollo Commercial Real Estate Finance Reports Q3 2025 Results with Strong Origination Activity and Progress on Focus Assets

ARI

Earnings

New Projects/Investments

Guidance Update

Apollo Commercial Real Estate Finance (ARI) reported GAAP net income of $48 million or $0.34 per diluted share, and distributable earnings of $42 million or $0.30 per share for Q3 2025. Run rate distributable earnings were $0.23 per share, slightly below the dividend level.
ARI committed to an additional $1 billion in new loans during Q3 2025, bringing year-to-date originations to $3 billion. Repayments and sales totaled $1.3 billion in the quarter, with year-to-date repayments reaching $2.1 billion.
The loan portfolio's carrying value was $8.3 billion at quarter-end, with a weighted average unleveraged yield of 7.7%. 54% of the portfolio consists of loans originated after the 2022 rate hikes.
ARI maintained $312 million in liquidity and reduced its leverage to 3.8 times from 4.1 times in the prior quarter. The revolving credit facility was upsized by $115 million and extended to August 2028.
Significant progress was made on focus assets, including six new contracts signed at 111 West 57th Street, with three closing post-quarter generating $55 million in proceeds. The company expects to complete the exit of 111 West 57th Street in early 2026 and The Brooke in the second half of 2026.

Oct 31, 2025, 2:00 PM

Transcript

Apollo Commercial Real Estate Finance Announces Q3 2025 Financial Results

ARI

Earnings

Dividends

New Projects/Investments

Apollo Commercial Real Estate Finance (ARI) reported net income available to common stockholders of $48 million, or $0.34 per diluted share, and Distributable Earnings of $42 million, or $0.30 per diluted share, for Q3 2025.
The company declared common stock dividends of $0.25 per share for Q3 2025.
ARI's total loan portfolio stood at $8.3 billion as of September 30, 2025, with $1.0 billion committed to new loans and $1.3 billion in loan repayments and sales during the quarter.
The company ended Q3 2025 with $312 million of total liquidity, including $259 million of cash, and a total common equity book value of $1.8 billion.

Oct 31, 2025, 2:00 PM

Presentation

ARI Reports Q3 2025 Financial Results and Operational Updates

ARI

Earnings

New Projects/Investments

Debt Issuance

For Q3 2025, Apollo Commercial Real Estate Finance (ARI) reported GAAP net income of $48 million, or $0.34 per diluted share, and distributable earnings of $42 million, or $0.30 per share. The book value per share, excluding general CECL allowance and depreciation, was $12.73 at quarter-end.
ARI originated $1 billion in new loans during Q3 2025, bringing year-to-date originations to $3 billion, and recorded $1.3 billion in repayments and sales for the quarter. The loan portfolio's carrying value was $8.3 billion, with 54% of the portfolio representing loans originated post-2022 rate hikes.
The company made progress on its focus assets, including six new contracts signed at 111 West 57th Street, three of which closed post-quarter end, generating approximately $55 million in proceeds. Exits for 111 West 57th Street are anticipated in early 2026, and The Brooke in late 2026.
ARI maintained strong liquidity of $312 million and reduced its leverage to 3.8 times at September 30, 2025. The company also upsized its revolving credit facility by $115 million and extended its maturity to August 2028.

Oct 31, 2025, 2:00 PM

Transcript

Apollo Commercial Real Estate Finance Reports Q3 2025 Results with Strong Origination and Capital Rotation

ARI

Earnings

New Projects/Investments

Debt Issuance

Apollo Commercial Real Estate Finance (ARI) reported Q3 2025 GAAP net income of $48 million or $0.34 per diluted share, and distributable earnings of $42 million or $0.30 per share.
The company committed to $1 billion in new loans during Q3 2025, bringing year-to-date originations to $3 billion, with the loan portfolio's carrying value reaching $8.3 billion.
Repayments and sales totaled $1.3 billion in Q3 2025, and ARI made significant progress on focus assets, including six new contracts signed at 111 West 57th Street and an anticipated exit from The Brooke in the second half of 2026.
ARI maintained strong liquidity of $312 million and reduced its leverage to 3.8x at September 30, while upsizing its revolving credit facility by $115 million and extending its maturity to August 2028.