Apollo Commercial Real Estate Finance(NYSE) ARI

Apollo Commercial Real Estate Finance, Inc. helps companies fund large building projects. It also manages hotels and apartment complexes. The firm is now closing to return cash to shareholders.

From Loans to Liquidation

• Commercial Mortgage Loans: Senior debt secured by business properties; the company sold this entire portfolio in April 2026.
• Subordinate Financing: Junior debt that typically carries higher interest rates but lower payment priority than primary loans.
• Real Estate Owned: Physical property assets such as a hotel in Washington, D.C. and apartments in Brooklyn.

Mapping the Path to Dissolution

• Sold the primary commercial loan portfolio to Athene for approximately $8.6 billion on April 24, 2026.
• Determined on June 15, 2026, that dissolving the company and liquidating all remaining assets was in the best interest of stockholders.
• Repaid all secured credit facilities and outstanding corporate debt using proceeds from the large asset sale.
• Redeemed all outstanding shares of Series B-1 Preferred Stock at $25.00 per share on July 15, 2026.

Operational Strengths

Apollo operates as a Real Estate Investment Trust, a structure that avoids federal income taxes by distributing earnings to shareholders. The company leverages a global management platform with approximately $1.05 trillion in assets under management to oversee its wind-down process.

Key Numbers and Liquidation Values

• Net income available to common stockholders was $22.7 million for the three months ended June 30, 2026.
• Net realized loss on investments was $339.1 million for the three months ended June 30, 2026.
• Distributable Earnings, a non-GAAP measure, was negative $349.1 million for the three months ended June 30, 2026.
• Book value per share was $8.47 at June 30, 2026, compared to $12.14 at Dec. 31, 2025.
• Cash and cash equivalents reached $1.2 billion as of June 30, 2026.

The Final Chapter

Apollo has evolved from an active commercial lender into a liquidating entity focused on returning capital. This transition follows the sale of its primary loan portfolio and the adoption of a formal dissolution plan.