Apollo Commercial Real Estate Finance, Inc. Files 2023 Annual Report

TL;DR

<b>Apollo Commercial Real Estate Finance, Inc. has filed its 2023 10-K annual report.</b>

AI Summary

Apollo Commercial Real Estate Finance, Inc. (ARI) filed a Annual Report (10-K) with the SEC on February 6, 2024. Filed 10-K for the fiscal year ending December 31, 2023. Company is Apollo Commercial Real Estate Finance, Inc. (ARI). Incorporated in Maryland. Primary business address is C/O Apollo Global Management, LLC, 9 West 57th Street, 43rd Floor, New York, NY 10019. Phone number is (212) 515-3200.

Why It Matters

For investors and stakeholders tracking Apollo Commercial Real Estate Finance, Inc., this filing contains several important signals. This filing provides a comprehensive overview of the company's financial performance and operations for the fiscal year 2023. Investors and analysts can use this report to assess the company's financial health, strategic direction, and potential risks.

Risk Assessment

Risk Level: low — Apollo Commercial Real Estate Finance, Inc. shows low risk based on this filing. The filing is a standard 10-K annual report, which is routine for publicly traded companies and does not indicate any immediate or unusual risks.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand ARI's performance and outlook.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-02-06 — Filing Date (As of date)
• 136 — Document Count (Public document count)
• 001-34452 — SEC File Number (SEC file number)

Key Players & Entities

• Apollo Commercial Real Estate Finance, Inc. (company) — Filer name
• ARI (company) — Ticker symbol
• 10-K (filing) — Form type
• 2023-12-31 (date) — Fiscal year end
• 2024-02-06 (date) — Filing date
• Apollo Global Management, LLC (company) — Business and mailing address reference
• New York (location) — Business and mailing address city
• Maryland (location) — State of incorporation

Forward-Looking Statements

• Apollo Commercial Real Estate Finance will continue to focus on managing its commercial mortgage and subordinate mortgage portfolios. (Apollo Commercial Real Estate Finance, Inc.) — high confidence, target: 2024-12-31
• The company's debt management strategies will be critical given its substantial secured debt and senior notes. (Apollo Commercial Real Estate Finance, Inc.) — medium confidence, target: 2024-12-31

FAQ

Industry Context

Apollo Commercial Real Estate Finance, Inc. operates as a real estate investment trust (REIT) focused on commercial real estate debt investments.

Regulatory Implications

As a publicly traded company, ARI is subject to SEC regulations and reporting requirements, including the filing of annual 10-K reports.

What Investors Should Do

1. Analyze the full 10-K filing for detailed financial statements and disclosures.
2. Examine the company's portfolio segments and debt structure.
3. Review any stated risk factors and management's discussion and analysis.

Key Dates

• 2023-12-31: Fiscal Year End — Defines the reporting period for the 10-K.
• 2024-02-06: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial filing of the 2023 10-K report.

Key Financial Figures

• $0.01 — ange on Which Registered Common Stock, $0.01 par value ARI New York Stock Exchange
• $631.2 billion — ssets under management of approximately $631.2 billion as of September 30, 2023. The Manager i
• $7.9 billion — d portfolio comprised of approxima tely $7.9 billion of commercial mortgage loans and $0.4 b
• $0.4 billion — illion of commercial mortgage loans and $0.4 billion of subordinate loans and other lending
• $5.6 billion — 23, we had financed this portfolio with $5.6 billion of secured debt arrangements, $769.3 mi
• $769.3 million — 6 billion of secured debt arrangements, $769.3 million senior secured term loans (the "Term Lo
• $500.0 million — secured term loans (the "Term Loans"), $500.0 million of 4.625% Senior Secured Notes due 2029
• $164.8 million — d Notes due 2029 (the "2029 Notes") and $164.8 million construction financing related to our r
• $3.2 billion — l debt. As of December 31, 2023, we had $3.2 billion of borrowings outstanding under our sec
• $147.0 million — ts with nine secured credit facilities, $147.0 million of borrowings outstanding under our rev
• $2.2 billion — nder our revolving credit facility, and $2.2 billion of borrowings outstanding under our pri
• $600.0 million — dit facility, which provided a combined $600.0 million of additional capacity, and upsized two
• $577.4 million — it facilities which provided a combined $577.4 million of additional capacity. In addition, as
• $1.3 billion — dition, as of December 31, 2023, we had $1.3 billion of corp orate level debt including Term

Filing Documents

• ari-20231231.htm (10-K) — 2842KB
• ari-20231231xex46.htm (EX-4.6) — 113KB
• formofarirsuawardagreeme.htm (EX-10.12) — 19KB
• ari-20231231xex211.htm (EX-21.1) — 43KB
• ari-20231231xex231.htm (EX-23.1) — 4KB
• ari-20231231xex311.htm (EX-31.1) — 10KB
• ari-20231231xex312.htm (EX-31.2) — 11KB
• ari-20231231xex321.htm (EX-32.1) — 9KB
• arirecoverypolicyadopted.htm (EX-97.1) — 15KB
• ari-20231231_g1.jpg (GRAPHIC) — 345KB
• arirecoverypolicyadopted001.jpg (GRAPHIC) — 177KB
• arirecoverypolicyadopted002.jpg (GRAPHIC) — 210KB
• arirecoverypolicyadopted003.jpg (GRAPHIC) — 185KB
• arirecoverypolicyadopted004.jpg (GRAPHIC) — 149KB
• arirecoverypolicyadopted005.jpg (GRAPHIC) — 205KB
• arirecoverypolicyadopted006.jpg (GRAPHIC) — 148KB
• formofarirsuawardagreeme001.jpg (GRAPHIC) — 118KB
• formofarirsuawardagreeme002.jpg (GRAPHIC) — 209KB
• formofarirsuawardagreeme003.jpg (GRAPHIC) — 240KB
• formofarirsuawardagreeme004.jpg (GRAPHIC) — 290KB
• formofarirsuawardagreeme005.jpg (GRAPHIC) — 244KB
• formofarirsuawardagreeme006.jpg (GRAPHIC) — 165KB
• 0001467760-24-000010.txt (&nbsp;) — 20952KB
• ari-20231231.xsd (EX-101.SCH) — 121KB
• ari-20231231_cal.xml (EX-101.CAL) — 95KB
• ari-20231231_def.xml (EX-101.DEF) — 837KB
• ari-20231231_lab.xml (EX-101.LAB) — 1123KB
• ari-20231231_pre.xml (EX-101.PRE) — 962KB
• ari-20231231_htm.xml (XML) — 2707KB

Business

Item 1. Business . 5

Risk Factors

Item 1A. Risk Factors. 8

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments. 31

Cybersecurity

Item 1C. Cybersecurity 31

Properties

Item 2. Properties. 33

Legal Proceedings

Item 3. Legal Proceedings. 33

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. 33 Part II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. 34

Selected Financial Data

Item 6. Selected Financial Data. 36

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. 36

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk. 51

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data. 52

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. 98

Controls and Procedures

Item 9A. Controls and Procedures. 98

Other Information

Item 9B. Other Information. 98

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. 98 Part III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance. 98

Executive Compensation

Item 11. Executive Compensation. 99

Security Ownership of Certain Beneficial Owners and Management Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management Related Stockholder Matters. 99

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence. 99

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services. 99 Part IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules. 99

Form 10-K Summary

Item 16. Form 10-K Summary. 102

Signatures

Signatures 102 3 FORWARD-LOOKING INFORMATION In this annual report on Form 10-K, references to "ARI," "Company," "we," "us," or "our" refer to Apollo Commercial Real Estate Finance, Inc. and its subsidiaries; references to the "Manager" refer to ACREFI Management, LLC, an indirect subsidiary of Apollo Global Management, Inc., unless specifically stated otherwise or the context otherwise indicates. We make forward-looking statements herein and will make forward-looking statements in future filings with the Securities and Exchange Commission ("SEC"), press releases or other written or oral communications within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). For these statements, we claim the protections of the safe harbor for forward-looking statements contained in such Sections. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond our control. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives. When we use the words "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may" or similar expressions, it intends to identify forward-looking statements. Statements regarding the following subjects, among others, may be forward-looking: higher interest rates and inflation; market trends in our industry, real estate values, the debt securities markets or the general economy; the demand for commercial real estate loans; our business and investment strategy; our operating results; actions and initiatives of the U.S. government and governments outside of the United States, changes to government policies and the execution and impact of these actions, initiatives and policies; the state

Business

Item 1. Business All currency figures expressed herein are expressed in thousands, except share or per share amounts. GENERAL Apollo Commercial Real Estate Finance, Inc. is a corporation that has elected to be taxed as a REIT for U.S. federal income tax purposes and primarily originates, acquires, invests in and manages performing commercial first mortgage loans, subordinate financings and other commercial real estate-related debt investments. These asset classes are referred to as our target assets. We are externally managed and advised by the Manager, an indirect subsidiary of Apollo Global Management, Inc. 5 (together with its subsidiaries, "Apollo"), a global, high-growth alternative asset manager with assets under management of approximately $631.2 billion as of September 30, 2023. The Manager is led by an experienced team of senior real estate professionals who have significant experience in underwriting and structuring commercial real estate financing transactions. We benefit from Apollo's global infrastructure and operating platform, through which we are able to source, evaluate and manage potential investments in our target assets. Our principal business objective is to acquire our target assets in order to provide attractive risk adjusted returns to our stockholders over the long term, primarily through dividends and secondarily through capital appreciation. As of December 31, 2023, we held a diversified portfolio comprised of approxima tely $7.9 billion of commercial mortgage loans and $0.4 billion of subordinate loans and other lending assets. As of December 31, 2023, we had financed this portfolio with $5.6 billion of secured debt arrangements, $769.3 million senior secured term loans (the "Term Loans"), $500.0 million of 4.625% Senior Secured Notes due 2029 (the "2029 Notes") and $164.8 million construction financing related to our real estate owned held for investment. We are a Maryland corpora tion that was organized in 2009 and have elect

View Full Filing

View this 10-K filing on SEC EDGAR