Apollo Commercial Real Estate Finance, Inc. (ARI) completed the sale of its entire $9 billion commercial‑real‑estate loan portfolio to Athene Holding Ltd. on April 24 2026, transforming the company from a traditional mortgage REIT into a capital deployment vehicle.
The transaction, first disclosed in a definitive agreement on January 28 2026 and approved by a majority of ARI shareholders at a special meeting on April 21 2026, delivers $1.4 billion in net cash and $466 million of net equity in real‑estate‑owned (REO) properties. The sale lifts ARI’s book value per share to approximately $12.05 from $10.64, reflecting the realization of value that had been undervalued in public markets.
The deal addresses a long‑standing discount between ARI’s stock and its book value, reduces legacy loan risk, and positions the company to pursue new commercial‑real‑estate strategies with substantial liquidity. Management has reduced the annual fee rate by 50% and will pay it in shares of common stock, aligning interests with shareholders. The company maintains a dividend yield of about 9.06% and will evaluate new strategies; if none are announced by year‑end, the board will explore all available alternatives, including dissolution.
"The strong support our stockholders have expressed for this transaction is an affirmation of our thesis that ARI's loan portfolio was undervalued in the public markets and the direct sale to an institutional buyer with deep familiarity with the assets was the right path to realizing value," said Stuart Rothstein, Chief Executive Officer and President of ARI. "Our objective has always been and continues to be to maximize stockholder value. Like many peers in the sector, ARI's common stock has traded below book value for an extended period and has not fully reflected the intrinsic value of the Company's loan portfolio." "This transaction provides certainty of execution through a complete loan portfolio sale to a high‑conviction buyer with deep familiarity with the assets, given Athene's aligned position in the capital structure with ARI across nearly 50% of the loans in the portfolio," added Rothstein. "With respect to public vehicles we manage, we consistently review underlying portfolio and stock price performance in evaluating potential strategies and options for maximizing realizable value for stockholders," said John Zito, co‑president of Apollo Asset Management.
ARI reported stronger‑than‑expected earnings for Q4 2025, with earnings per share of $0.26 versus a consensus estimate of $0.24 and revenue of $73.25 million against a forecast of $60.16 million. The results underscore the company’s robust loan portfolio performance and effective cost management during the period.
The company will continue to evaluate new commercial‑real‑estate strategies with its enhanced balance sheet. Apollo Global Management maintains oversight, and ARI’s board will pursue strategic alternatives if a new strategy is not announced by year‑end.
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