Apollo's ARI Secures Near-Full-Value Sale of Loan Portfolio to Athene
Apollo Commercial Real Estate Finance, Inc. (ARI) has agreed to sell its entire loan portfolio to Athene, a firm owned by Apollo. The deal values the assets at 99.7% of their book value—a far higher rate than the market's recent 80-90% estimates. Shareholders will vote on the transaction, which is set to close in the second quarter of 2026.
For years, ARI's stock traded at a steep discount, often 40-60% below book value. Investors grew wary of commercial real estate risks, rising interest rates, and credit concerns in the wake of COVID-19. Despite these challenges, the company secured a near-full-value sale for its loan portfolio.
After the deal, ARI will hold $1.4 billion in cash along with equity in three properties and a development site. Its book value per share will dip slightly to $12.05, down from $12.07-$12.18 in early 2025. Analysts expect the share price to move closer to $12 once the transaction completes.
ARI has also confirmed it will keep its $0.25 dividend for the next payment. Future payouts are projected to equal about 8% of book value. The company remains open to further deals, particularly in multi-family agency lending.
The sale to Athene marks a major shift for ARI, converting most of its assets into cash and a small property portfolio. With $1.4 billion available, the firm now has flexibility for new investments or shareholder returns. The transaction's completion in mid-2026 remains subject to final approvals.
