Apollo to Sell REIT Debt Portfolio for $9B

January 29, 2026

Investment Finance Industrial International More National News Office

The terms of the deal allow ARI to seek out a better offer over the next few weeks.

Exterior shot of the office property at 1540 Broadway in Manhattan, N.Y. Apollo Global Management issued a $358 million loan backed by the asset in January 2026. — Apollo Global Management’s debt business goes beyond ARI. For instance, it provided $358 million for this 907,427-square-foot office property at 1540 Broadway in Manhattan, N.Y., earlier this month, Yardi Matrix data shows. GFP Real Estate, BDT & MSD Partners will use the debt as part of a $150 million renovation plan, as reported by multipe sources. Image courtesy of Yardi Matrix

Apollo plans to sell the portfolio of its managed financing REIT, ARI, for $9 billion to Athene Holding, an insurance subsidiary. ARI expects to be left with $1.4 billion of net cash and roughly $1.7 billion in common stockholders’ equity, or $12.05 per share, following repayment of its debt.

Additionally, the REIT will retain all net equity interests, totaling approximately $466 million as of September 2025. Post announcement, ARI’s stock ticked up 5.5 percent yesterday to $10.68 per share, according to Google Finance. It was also 21.5 percent higher year-over-year.

The deal may close in the second quarter of 2026, being subject to the approval of a majority of the REIT’s common shareholders, as well as customary closing conditions. Pursuant to the terms of the agreement, ARI may also seek out a better offer over the next 25 days.

The company’s stock has traded below book value for an extended period, which did not reflect the firm’s value, ARI CEO & President Stuart Rothstein said in prepared remarks. However, the REIT’s yield-generating assets are in short supply and produce strong demand from the institutional market, he continued.

ARI plans to leverage Apollo’s investment platform and origination capabilities for a 2026 reposition, but the REIT will also consider M&A opportunities. The goal is to position shares at or above book value going forward, Rothstein added.

The REIT will attempt to design and execute a new strategy with approximately $1.4 billion of net cash following the sale of its debt portfolio. However, if no new asset strategy of transaction is announced by the end of the year, Apollo might pursue dissolution.

Office debt makes up one quarter of ARI’s portfolio

ARI’s portfolio comprised 54 loans totaling $8.3 billion with a weighted average remaining term of three years as of September 2025, according to its website. The debt had a weighted average unlevered all-in-yield of 7.7 percent.

A quarter of the debt encumbered office properties, while industrial made up 10 percent and retail accounted for 4 percent. Residential stood at 31 percent and hospitality at 17 percent, with mixed use rounding up to 4 percent. Other asset types also represented 4 percent of the loan portfolio.

Nearly half of the properties, 47 percent, were within the U.S., while 31 percent were located in the U.K., followed by other countries in Europe (14 percent) and other regions (9 percent).