Apollo Commercial Real Estate Finance shares rise 10.68% premarket after announcing $9B loan portfolio sale to validate book value and deliver liquidity.

Apollo Commercial Real Estate Finance (ARI) surged 10.68% in premarket trading following the announcement of a definitive agreement to sell its $9 billion commercial real estate loan portfolio to Athene Holding Ltd. The transaction, validated by a special committee of independent directors, provides a compelling premium to recent trading levels, with proceeds expected to deliver approximately $1.4 billion in net cash and $12.05 per share of equity. The deal confirms ARI’s book value, addresses long-standing valuation discounts, and positions the company to reposition its strategy while retaining equity in its real estate properties. Management highlighted the transaction’s alignment with shareholder value maximization, including continuity of dividends and a reduced management fee, further reinforcing the positive market reaction.