Apollo Commercial Real Estate Finance Inc, which is backed by Apollo Global Management, is set to wind down and liquidate its remaining assets after its board concluded that dissolution represents the most value-accretive option for shareholders, according to a report by Bloomberg.
The decision comes after the firm evaluated potential restructuring paths, including mergers and repositioning strategies. Ultimately, the board determined that an orderly wind-down of the real estate investment trust is in the best interests of the company and its investors.
Earlier this year, the lender completed a significant portfolio transaction, selling a roughly $9bn loan book to Apollo’s insurance affiliate Athene Holding. The deal, priced at approximately 99.7% of loan commitments, marked a major step in reshaping the company’s balance sheet and reducing its exposure to commercial real estate assets.
Following that transaction, the company—also known as ARI—was left with approximately $2.2bn in assets, largely consisting of cash holdings, prompting further consideration of its long-term operating model.
The move reflects ongoing pressure in parts of the commercial real estate sector, where listed property-related vehicles have often traded at persistent discounts to underlying net asset values. In ARI’s case, shares have averaged a significant discount to book value over recent years, highlighting market scepticism toward the sector’s valuations.
With the portfolio now largely transferred and limited assets remaining, the firm will proceed with liquidation as it exits its property lending activities, bringing its current strategy to a close.
