Apollo Commercial Real Estate Finance, Inc. (ARI) Stock

Apollo Commercial Real Estate Finance, Inc. (ARI) is a Real Estate stock trading at $6.94 (as of 2026-08-21), with a market capitalization of $889.79M and a trailing P/E of 6.9. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Apollo Commercial Real Estate Finance, Inc. (ARI) is a REIT that originates, acquires, invests in, and manages commercial real estate-related debt, including commercial first mortgage loans and subordinate financings, in the United States. It conducts these activities through its investment and management of such debt instruments for investors, and it is structured to qualify as a REIT under the Internal Revenue Code.

Understand Apollo Commercial Real Estate Finance, Inc.: how it makes money

Apollo Commercial Real Estate Finance operates as a REIT that originates, acquires, invests in, and manages commercial real estate debt (first mortgage loans, subordinate financings, and other related debt investments), and makes money through the earnings from these structured real estate financing activities.

As a REIT, its profit engine ties earnings from commercial real estate debt investments to the requirement to distribute at least 90% of REIT taxable income to stockholders to avoid federal income tax.

Business quality (Solid): The provided facts clearly describe the REIT business model (commercial mortgage and subordinate financing lending, plus REIT distribution rule) and include one operating metric, but they do not include a clean reportable segment breakdown or detailed credit and portfolio performance information.

Valuation: At 13× earnings, ARI trades 61% below the Trading average (34×). Note: one-time items can distort reported P/E.

Bull case

REIT structure and tax rule: It is qualified as a REIT, and it would not be subject to federal income taxes if it distributes at least 90% of its REIT taxable income to stockholders.
Focused business model in commercial real estate debt: It originates, acquires, invests in, and manages commercial first mortgage loans, subordinate financings, and other commercial real estate-related debt investments in the United States.

Bear case

REIT distribution dependency: Maintaining REIT tax treatment depends on distributing at least 90% of REIT taxable income to stockholders, which can constrain flexibility.
Portfolio concentration risk: The business is focused on U.S. commercial real estate debt, so unfavorable conditions in commercial real estate can pressure results.
Limited disclosed detail in the provided facts: The provided information does not include credit metrics, loan performance, or a reportable segment breakdown, making it harder to assess how specific parts of the portfolio are performing.

Valuation — source: SEC EDGAR (first-party)
Price	$6.94
Market Cap	$889.79M
P/E Ratio	6.9
EV / EBITDA	-2.4
Price / Book	0.71
Price / Sales	3.99
DCF Value (model)	$6.00
DCF Upside vs Price	-13.5%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$271.59M
Net Margin	46.7%
Revenue Growth (YoY)	-10.6%
EPS Growth (YoY)	-183.5%

Valuation vs Sector & Industry
Stock P/E	6.9
Sector P/E (Real Estate)	27.2
Industry P/E (Trading)	35.3
vs Sector	-74.6%
vs Industry	-80.5%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	BlackRock, Inc. ($223.70M)
Institutional Holders Tracked	10

Company
Sector	Real Estate
Industry	Trading
CEO	Stuart A. Rothstein
Employees	0
Country	US
IPO Date	2009-09-24

Related Companies (Business model: Equity REIT (Real Estate Investment Trust); 8 closest by market cap; US-domiciled)

Data as of 2026-08-21.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.