Apollo CRE Finance Files 2024 10-K

TL;DR

ARI filed its 2024 10-K. Financials look solid, but keep an eye on CRE market shifts.

AI Summary

Apollo Commercial Real Estate Finance, Inc. (ARI) filed its 2024 10-K on February 10, 2025, reporting on its fiscal year ending December 31, 2024. The company, a real estate investment trust, is managed by Apollo Global Management, LLC. The filing details its financial performance and operations within the real estate sector.

Why It Matters

This 10-K filing provides investors with a comprehensive overview of Apollo Commercial Real Estate Finance's financial health, strategic positioning, and risks for the fiscal year 2024, influencing investment decisions.

Risk Assessment

Risk Level: medium — Real estate investment trusts are inherently exposed to market fluctuations, interest rate changes, and economic downturns.

Key Players & Entities

• Apollo Commercial Real Estate Finance, Inc. (company) — Filer of the 10-K
• Apollo Global Management, LLC (company) — Manager of Apollo Commercial Real Estate Finance
• 20241231 (date) — Fiscal year end
• 20250210 (date) — Filing date

FAQ

Key Financial Figures

• $0.01 — nge on Which Registered Common Stock, $0.01 par value ARI New York Stock Exchan
• $751.0 billion — ssets under management of approximately $751.0 billion as of December 31, 2024. The Manager is
• $6.7 billion — ed portfolio comprised of approximately $6.7 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
• $4.8 billion — 24, we had financed this portfolio with $4.8 billion of secured debt arrangements, $761.3 mi
• $761.3 million — 8 billion of secured debt arrangements, $761.3 million senior secured term loans (the "Term Lo
• $500.0 million — ured term loans (the "Term Loans"), and $500.0 million of 4.625% Senior Secured Notes due 2029
• $752.6 million — nally, as of December 31, 2024, we held $752.6 million of real estate assets, and $327.7 milli
• $327.7 million — 52.6 million of real estate assets, and $327.7 million of related financing. We are a Maryla
• $3.2 billion — l debt. As of December 31, 2024, we had $3.2 billion of borrowings outstanding under our sec
• $1.6 billion — rsified across nine counterparties, and $1.6 billion of borrowings outstanding under our pri
• $160.0 million — cility"), which has a total capacity of $160.0 million. During the year ended December 31, 202
• $458.8 million — d additional capacity of 366.6 million ($458.8 million converted into USD) and $413.5 million,
• $413.5 m — ($458.8 million converted into USD) and $413.5 million, respectively. In addition, as of
• $1.3 billion — dition, as of December 31, 2024, we had $1.3 billion of corporate level debt including Term

Filing Documents

• ari-20241231.htm (10-K) — 5993KB
• ari-ex4_6.htm (EX-4.6) — 175KB
• ari-ex19_1.htm (EX-19.1) — 43KB
• ari-ex21_1.htm (EX-21.1) — 76KB
• ari-ex23_1.htm (EX-23.1) — 7KB
• ari-ex31_1.htm (EX-31.1) — 16KB
• ari-ex31_2.htm (EX-31.2) — 19KB
• ari-ex32_1.htm (EX-32.1) — 19KB
• img129640724_0.jpg (GRAPHIC) — 66KB
• 0000950170-25-017122.txt ( ) — 27966KB
• ari-20241231.xsd (EX-101.SCH) — 2836KB
• ari-20241231_htm.xml (XML) — 6060KB

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

Management's Discussion and Analysis of Financial Condition and Results of Operations. 41 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk. 56 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data. 59 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. 106 Item 9A.

Controls and Procedures

Controls and Procedures. 107 Item 9B. Other Information. 107 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. 108 Part III Item 10. Directors, Executive Officers and Corporate Governance. 109 Item 11.

Executive Compensation

Executive Compensation. 109 Item 12.

Security Ownership of Certain Beneficial Owners and Management Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management Related Stockholder Matters. 109 Item 13. Certain Relationships and Related Transactions, and Director Independence. 109 Item 14. Principal Accountant Fees and Services. 109 Part IV Item 15. Exhibits, Financial Statement Schedules. 110 Item 16. Form 10-K Summary. 112

Signatures

Signatures 112 4 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 st

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. (together with its subsidiaries, "Apollo"), a global, high-growth alternative asset manager with assets under management of approximately $751.0 billion as of December 31, 2024. 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, 2024, we held a diversified portfolio comprised of approximately $6.7 billion of commercial mortgage loans and $0.4 billion of subordinate loans and other lending assets. As of December 31, 2024, we had financed this portfolio with $4.8 billion of secured debt arrangements, $761.3 million senior secured term loans (the "Term Loans"), and $500.0 million of 4.625% Senior Secured Notes due 2029 (the "2029 Notes"). Additionally, as of December 31, 2024, we held $752.6 million of real estate assets, and $327.7 million of related financing. We are a Maryland corporation that was o

View Full Filing

View this 10-K filing on SEC EDGAR