Apollo Commercial Real Estate Finance to Sell Loan Portfolio to Athene, Targets $12.05 Book Value

4 days ago 10

MarketBeat

Sat, January 31, 2026 astatine 9:33 AM CST 6 min read

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Apollo Commercial Real Estate Finance agreed to merchantability its indebtedness portfolio to Athene for a acquisition terms adjacent to 99.7% of full indebtedness commitments (excluding 2 loans totaling $146 million), and expects the woody to permission ARI with a communal equity publication worth per stock of astir $12.05 and astir $1.4 cardinal of nett cash.
Management says the sale—which carries a 23% premium to caller trading levels and has no financing contingency—is designed to adjacent a long-running valuation gap; the transaction includes a 25-day go-shop, requires stockholder approval, and is expected to adjacent successful the second quarter.
Post-close, ARI volition clasp astir $466 million of nett equity successful existent estate, stay a REIT, intends to wage a $0.25 Q1 dividend and people an ~8% annualized yield, portion Apollo agreed to a 50% reduction successful its yearly absorption interest (paid successful stock) and to reimburse up to $10 million; absorption volition prosecute strategical options, including M&A oregon imaginable dissolution if nary program is adopted by year-end.
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Apollo Commercial Real Estate Finance (NYSE:ARI) outlined plans to merchantability its indebtedness portfolio to Athene successful a transaction that Chief Executive Officer Stuart Rothstein described arsenic “transformational” for the institution and its communal stockholders. Management said the woody is intended to code a persistent discount betwixt ARI’s nationalist marketplace valuation and the underlying worth of its assets.

Rothstein said ARI entered into a definitive statement with Athene to merchantability ARI’s indebtedness portfolio for a acquisition terms of 99.7% based connected full indebtedness commitments, nett of asset-specific CECL reserves. The acquisition terms excludes two loans with a main equilibrium of $146 million that are expected to beryllium repaid anterior to closing.

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After repayment of “substantially all” financing facilities and different indebtedness, and aft estimated transaction expenses, the institution expects to person a common equity publication worth per stock of astir $12.05, according to Rothstein.

Rothstein said the indebtedness portfolio is being sold to Athene, which helium called a “high condemnation buyer,” noting Athene’s familiarity with the portfolio and its “aligned position” successful the superior operation alongside ARI crossed astir 50% of the loans.

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ARI expects the transaction to present astir $1.4 cardinal of nett cash. Rothstein added that ARI volition clasp each nett equity interests successful existent property properties held by the company, which helium said totaled astir $466 cardinal arsenic of Sept. 30, 2025.