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Apollo Commercial Real Estate Finance, part of the listed REIT sector focused on commercial property lending, has decided to liquidate its assets and dissolve the company after completing a major portfolio transaction earlier this year. The company had sold its large commercial real estate loan portfolio to Athene Holding, resulting in significant cash inflows and a strategic review of its future operations. Following this, the board approved a dividend of USD 3.75 per share, largely treated as return of capital, to be paid to shareholders on July 15. The move marks the end of its operating structure and transition into wind-down mode.
Apollo Commercial Real Estate Finance has decided to fully wind down its operations after completing the sale of its commercial real estate loan portfolio earlier this year, marking a major shift in its business direction. The real estate investment trust, which has been engaged in originating and managing commercial property-related debt, confirmed that it will liquidate its remaining assets, dissolve the company, and distribute proceeds to shareholders.
The company had earlier agreed to sell its approximately USD 9 billion loan portfolio to Athene Holding at near-full value. Following repayments and related expenses, the transaction was expected to generate around USD 1.4 billion in net cash, while the firm retained certain equity interests in select real estate assets. The portfolio sale was completed in the previous months, which later triggered a detailed strategic review of the company’s future direction.
As part of its wind-down plan, the board has approved a dividend of USD 3.75 per share on common stock. The payout will be made on July 15, and a major portion of this distribution will be classified as a return of capital rather than regular income. This structure indicates that investors are receiving proceeds linked to asset liquidation rather than operating earnings.
Following the portfolio sale and internal review, the company’s leadership stated that dissolving the business was considered the most appropriate course of action for both the company and its shareholders. The chief executive officer, Stuart Rothstein, conveyed that the decision emerged after evaluating post-sale positioning and overall shareholder value outcomes. The company is now expected to seek shareholder approval for the dissolution plan and will also file a preliminary proxy statement with the Securities and Exchange Commission outlining the detailed wind-down process.
Source Reuters
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