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• Like **Rocket Mortgage**, but for commercial buildings (such as office towers, hotels, or shopping malls) instead of homes.
• Essentially the commercial real estate lending division of a major bank like **JPMorgan Chase** or **Wells Fargo**, but structured as a standalone, publicly traded real estate investment trust (REIT).

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• Commercial Real Estate Senior Mortgage Loans: Providing primary debt financing for income-producing commercial properties, secured by a first-priority mortgage.
• Commercial Real Estate Mezzanine Loans: Offering subordinated debt financing for commercial properties, which ranks junior to senior mortgages but senior to common equity.
• Commercial Real Estate Preferred Equity Investments: Supplying capital to commercial real estate projects, which holds a preferred position over common equity.

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Apollo Commercial Real Estate Finance (symbol: ARI) primarily sells its financing products and services to other companies, specifically those involved in commercial real estate investment and development.

As a real estate investment trust (REIT) that originates, acquires, and manages commercial mortgage loans and other debt investments, ARI's "customers" are the borrowers who seek financing for their commercial real estate projects and acquisitions. Due to the nature of their lending business and the typically private agreements with borrowers, ARI does not publicly disclose the names of individual major customer companies. Instead, their customer base can be broadly categorized as:

• Commercial Real Estate Developers and Sponsors: These are companies and entities that acquire, develop, redevelop, or reposition commercial properties across various sectors (such as office, retail, industrial, multifamily, and hotel). They seek financing for construction, acquisition, or refinancing of these projects.
• Institutional Real Estate Investors: This category includes investment firms, private equity funds, and other institutional entities that acquire and hold portfolios of commercial real estate assets and require debt capital for these investments.
• Property Owners and Operators: These are businesses or investment vehicles that own and operate income-producing commercial properties and may seek refinancing or additional debt for property improvements, expansions, or other capital needs.

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• Apollo Global Management, Inc. (APO)

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Stuart A. Rothstein, President, Chief Executive Officer and Director

Mr. Rothstein has served as President and Chief Executive Officer and a director of Apollo Commercial Real Estate Finance (ARI) since March 2012. He was also the company's Chief Financial Officer, Treasurer, and Secretary from September 2009 through April 2013, and again on an interim basis from January 2022 to April 2022. Since 2009, he has been a Partner and the Chief Operating Officer-Real Estate of Apollo, and since April 2023, the Chief Operating Officer-Asset Backed Finance of Apollo. He is also the Chairman of the board of directors for Apollo Realty Income Solutions ("ARIS") and Apollo Asset-Backed Credit Company ("ABC"), and Chairman of the Board and Co-Portfolio Manager for Apollo Diversified Real Estate Fund ("ADREF"). Before joining Apollo in 2009, Mr. Rothstein was a Co-Managing Partner of Four Corners Properties, a privately held real estate investment company. He also previously held positions at KKR Financial Advisors, LLC, RBC Capital Markets, Related Capital Company, and Spieker Properties, Inc.

Anastasia Mironova, Chief Financial Officer, Treasurer and Secretary

Ms. Mironova has served as Chief Financial Officer, Treasurer, and Secretary of ARI since April 2022. She is also a Managing Director, Credit at Apollo. Before joining Apollo in 2022, Ms. Mironova was a Partner at BDO USA, LLP, focusing on public REITs and debt funds from May 2021 to April 2022. Prior to that, she was a Managing Director in the Real Estate practice at Deloitte & Touche. Her career in public accounting has focused on serving a wide range of financial services companies, particularly public mortgage REITs.

Scott Weiner, Chief Investment Officer

Mr. Weiner serves as the Chief Investment Officer of Apollo Commercial Real Estate Finance. He holds a BA in International Studies from Johns Hopkins University.

Michael E. Salvati, Chairman of the Executive Board

Mr. Salvati has been the Chairman of the Executive Board since 2009.

Robert Kasdin, Director

Mr. Kasdin has served as a director of Apollo Asset Backed Credit Company LLC since September 2025. Previously, he was the Executive Vice President and Chief Financial Officer of the University of Michigan from 1997 to 2002. From 1993 to 1997, he was the Treasurer and Chief Investment Officer for the Metropolitan Museum of Art, and from 1988 to 1992, he served as Vice President and General Counsel for Princeton University Investment Company. Mr. Kasdin began his career as a corporate attorney at Davis Polk & Wardwell LLP.

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The key risks to Apollo Commercial Real Estate Finance (ARI) primarily stem from the challenging commercial real estate market, interest rate volatility, and concerns around its leverage and funding.

1. Commercial Real Estate Market Headwinds and Asset Valuation: ARI faces significant headwinds from the broader commercial real estate (CRE) sector, including rising systematic risk and potential for further losses. The company's portfolio, concentrated in floating-rate loans with short weighted average terms, is exposed to mark-to-market and collateral valuation risks. For instance, approximately 19% of its collateral value is situated in New York, largely spanning residential properties, which have experienced valuation compression. Fluctuations in property values directly impact ARI's loan portfolio and investment returns, and commercial mortgage loans are inherently subject to risks of delinquency, foreclosure, and loss.
2. Interest Rate Fluctuations: As a mortgage REIT, ARI's business model is highly sensitive to interest rate changes. While a portfolio heavily focused on floating-rate debt can benefit in a rising rate environment, it also exposes the company to increased borrower risk when rates are high. Conversely, lower mortgage rates have previously impacted ARI by reducing its net interest income, as it struggled to scale financing costs sufficiently. Significant interest rate changes can reduce income on assets and increase financing costs, thereby adversely affecting earnings and cash available for distribution.
3. High Leverage and Funding Concerns: ARI operates with high financial leverage, typical for a mortgage REIT, with its debt-to-equity ratio recently increasing to approximately 4.1x as of the third quarter of 2025. This elevated leverage amplifies both potential returns and risks. The company has also faced concerns regarding the sustainability of its dividend payouts due to earnings coverage and has previously experienced falling revenues and limited operating cash flow coverage for its debt. Furthermore, there's a risk stemming from the potential mismatch between the liquidity of its underlying assets and the structure of its liabilities.

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Apollo Commercial Real Estate Finance (ARI) operates in the commercial real estate debt market, primarily originating, investing in, acquiring, and managing commercial first-mortgage loans, subordinate financings, and commercial mortgage-backed securities (CMBS). Their investments span various property types across the United States and Europe.

The addressable markets for ARI's main products and services are significant, particularly in the U.S. and globally:

• U.S. Commercial Real Estate Debt Market: The total outstanding U.S. commercial real estate (CRE) debt was valued at approximately $5.9 trillion as of the fourth quarter of 2023 or the second quarter of 2024. This market includes loans backed by income-producing properties and construction loans.

• U.S. Commercial Mortgage-Backed Securities (CMBS) Market: This market had a capitalization of around $1.8 trillion as of December 31, 2024. It constitutes a substantial portion of the broader U.S. securitized market.

• Global Commercial Mortgage-Backed Securities (CMBS) Market: The global CMBS market size was valued at approximately $1.23 trillion in 2024 and is projected to reach $1.88 trillion by 2033.

• Global Commercial Real Estate Debt Market (Maturing Debt): JLL projects that $3.1 trillion of real estate assets globally will have maturing debt by the end of 2025, with about 77% of this in the U.S. The broader global CRE debt market is estimated to be over $6 trillion.

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1. Continued Loan Origination and Portfolio Expansion: ARI has demonstrated robust loan origination activity, with management anticipating continued growth in its loan portfolio. For instance, the company reported originating $1.4 billion in new commitments in Q2 2025 and over $2 billion year-to-date, along with additional add-on fundings for existing loans. This expansion is expected to be fueled by an active origination pipeline, including over $1 billion for the first half of 2025, suggesting a growing asset base that generates interest income.
2. Strategic Redeployment of Capital from Monetized Assets: The company plans to monetize specific focus assets, such as 111 West 57th Street in early 2026 and The Brook by mid-2026. The proceeds from these sales, including an expected $55 million from 111 West 57th Street, will be redeployed into new loan originations. This strategic capital recycling is anticipated to drive an earnings uplift in Q4 and into 2026.
3. Focus on Residential Properties and European Market Expansion: ARI has strategically emphasized residential properties, which constituted 31% of its portfolio in Q3 2025. Furthermore, the company's expansion into European markets is a key strategic initiative, contributing to its robust financial results and positioning it as a leading alternative lender in the region. The international diversification is viewed as a strategic advantage, with a healthy pipeline across property types in the U.S. and Europe.
4. Beneficial Impact of Floating-Rate Loans and Attractive Yields on New Originations: A significant portion (96%) of ARI's loan portfolio consists of floating-rate loans. While a general decrease in interest rates might impact earnings, newly originated loans are underwritten to generate attractive risk-adjusted returns, benefiting from wider spreads and higher base rates. This allows ARI to capitalize on prevailing market conditions when deploying capital from repayments into new, higher-yielding opportunities, with the weighted average unlevered yield on the loan portfolio at 7.7% in Q3 2025 and 7.9% in Q1 2025.

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Share Repurchases

• In 2020, Apollo Commercial Real Estate Finance repurchased 14,832,632 shares of its common stock at a weighted-average price of $8.61 per share. The board of directors initially approved a stock repurchase program of up to $150.0 million in March 2020, and an additional $150.0 million was approved in February 2021.
• There was no significant common stock repurchase activity in 2021, 2022, or 2023, apart from 4,734 shares repurchased in the fourth quarter of 2021 at $34.45 per share to satisfy tax withholding obligations related to employee equity plans.
• In 2024, the company repurchased 4,013,405 shares of its common stock at a weighted-average price of $10.15 per share. As of March 31, 2024, $172.2 million remained authorized under the stock repurchase program.

Share Issuance

• In 2021, ARI raised approximately $1.9 billion of capital, which included common and preferred equity, alongside long-term unsecured debt. This included an inaugural preferred equity offering that raised approximately $175 million with a 4.25% coupon. Additionally, under a 2020 At-The-Market (ATM) Program, 7,322,471 shares were sold for gross proceeds at a weighted average price of $33.84 per share.
• The number of common shares issued and outstanding increased by 701,935 from 139,894,060 in 2021 to 140,595,995 in 2022, and further to 141,353,133 in 2023. By February 5, 2024, this figure reached 142,096,715 shares. The company also has a Registration Statement on Form S-3 for the offering from time to time of common stock, preferred stock, depositary shares, debt securities, warrants, and rights.

Outbound Investments

• Apollo Commercial Real Estate Finance's primary business activity involves originating, acquiring, investing in, and managing performing commercial first mortgage loans, subordinate financings, and other commercial real estate-related debt investments across a broad spectrum of geographies (United States and Europe) and property types.
• In 2024, ARI committed $1.9 billion to new loans and provided an additional $627.4 million in add-on fundings. The company also successfully reinvested $2.5 billion received from loan repayments and sales during the year.

Capital Expenditures

• Capital expenditures on real estate assets amounted to $(47,187) thousand for the nine months ended September 30, 2023.
• For the nine months ended September 30, 2024, capital expenditures on real estate assets increased to $(123,275) thousand.
• These capital expenditures are related to real estate assets, which likely pertain to properties acquired as part of ARI's investment portfolio, such as through foreclosure or for direct investment purposes, rather than traditional operational capital expenditures.