Apollo REIT Offloads $9B Loan Book to Athene

Apollo Commercial REIT is shedding its loan portfolio in a strategic move to unlock value and reset its commercial real estate strategy.

January 28, 2026

Nina Dale

Apollo Commercial Real Estate Finance (ARI) is selling its $9B loan portfolio to Athene Holding, an insurance arm of Apollo Global Management.
The purchase price reflects 99.7% of loan commitments, as ARI looks to capitalize on investor interest in high-yield private market assets.
The deal positions the REIT with $1.4B in net cash and potential for a strategy pivot—or dissolution if no plan is adopted by year-end.

Key Takeaways

A Strategic Shake-Up

Apollo Commercial Real Estate Finance, a publicly traded REIT managed by Apollo Global Management, is unloading its entire $9 billion loan book to Athene Holding. The sale—priced at 99.7% of total loan commitments—comes amid persistent pressure from public markets where ARI’s stock has consistently traded well below book value.

Addressing the Valuation Gap

For years, ARI’s stock has failed to reflect the true worth of its assets. On average, the REIT’s shares have traded at 77% of book value over the past four years. This valuation disconnect is a common pain point for public real estate investors, especially as private capital, like Athene, is eager to deploy funds into yield-producing assets.

“This transaction recognizes the intrinsic value of our portfolio,” said ARI CEO Stuart Rothstein, emphasizing that Athene is a “high-conviction buyer with deep familiarity” with the assets.

Terms and Timeline

The sale includes a 25-day “go-shop” period, allowing the REIT to entertain alternative offers. The deal, already approved by ARI’s board, is slated to close in Q2 2026.

Once finalized, ARI will hold approximately $1.4 billion in net cash. Management says these proceeds could support a pivot to new commercial real estate investment strategies. However, if no plan materializes by year-end, Apollo is prepared to recommend exploring options including winding down the REIT entirely.

Why It Matters

The move reflects a growing trend of public real estate firms reevaluating their business models in light of public-private valuation mismatches. Private buyers like Athene, backed by massive insurance capital, are increasingly stepping in to acquire undervalued portfolios—often at terms favorable to both sides.

This transaction also illustrates how REITs are adapting in an environment where raising capital through public equity is less attractive due to persistent discounts to NAV (Net Asset Value).

What’s Next

Apollo’s decision could serve as a bellwether for other publicly traded REITs struggling with similar valuation challenges. With private capital eager for yield and REITs sitting on undervalued portfolios, more consolidation and strategic reallocation may be on the horizon.