Apollo Commercial Real Estate Finance Exits $9B CRE Book Via Portfolio Sale
The REIT is selling its CRE positions to Athene Holding as it re-evaluates long-term plans, which may include a merger and acquisition
By Brian Pascus January 28, 2026 3:13 pm
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Here’s an item no one had on their Bingo card: Apollo Commercial Real Estate Finance is exiting its commercial real estate positions.
Scott Weiner and Stuart Rothstein‘s publicly traded real estate investment trust (REIT), which doubles as a subsidiary of Apollo Global Management, signed an agreement with insurance subsidiary Athene Holding to sell its entire $9 billion commercial real estate loan portfolio — effectively 100 percent of total loan commitments.
The deal will exclude two loans with a balance of $146 million, which is expected to be repaid at closing.
Following the sale, Apollo expects to earn $1.4 billion and generate $1.7 billion in common stockholders’ equity, while retaining $486 million in net equity interest in the various CRE properties within the portfolio, according to a release.
Moreover, the deal marks a change in strategy for Apollo Commercial Real Estate Finance. The REIT plans to spend the rest of the year evaluating its long-term commercial real estate strategies as it repositions itself with this new liquidity, and some strategies may include considering merger and acquisition opportunities, according to the firm.
Even so, the agreement provides Apollo with the flexibility and right to reacquire any assets managed by Athene following the sale.
Stuart Rothstein, CEO and president of Apollo Commercial Real Estate Finance, noted in a statement that the primary considerations in this deal is his firm’s stock price — which is trading at $10.64 per share as of Wednesday afternoon, down 43 percent from its pre-2020 peak of $18 per share — adding that the stock price “has not fully reflected the intrinsic value of the company’s loan portfolio.”
“This transaction provides certainty of execution through a complete loan portfolio sale to a high-conviction buyer with deep familiarity with the assets, given Athene’s aligned position in the capital structure with Apollo Commercial Real Estate Finance across nearly 50 percent of the loans in the portfolio,” said Rothstein.
Rothstein’s firm believes the deal represents a 23 percent premium on the firm’s share price, and will provide the REIT with “immediate liquidity,” while also generating an 8 percent annualized yield on the post-transaction book value per share forecasted, in addition to the $1.4 billion in net cash after closing
“Apollo believes [its] stockholders will unlock significant value from this transaction,” said John Zito, co-president of Apollo Asset Management. “Our long-standing commitment has been to deliver strong, positive outcomes in all instances where we manage stockholder capital.”
Bank of America Securities; Fried, Frank, Harris, Shriver & Jacobson; and Clifford Chance U.S. advised Apollo on the transaction, while Eastdil Secured and Sidley Austin advised Athene.
Brian Pascus can be reached at bpascus@commercialobserver.com.
