Schedule IV - Mortgage Loans on Real Estate

12 Months Ended

Dec. 31, 2023

SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]

Schedule IV - Mortgage Loans on Real Estate

Apollo Commercial Real Estate Finance, Inc.

Schedule IV — Mortgage Loans on Real Estate

As of December 31, 2023

($ in thousands)


Description	Number of Loans	Property Type/location	Contractual Interest Rate (1)	Maturity Date(2)	Periodic Payment	Principal Balance		Carrying Value			Principal Amount of Mortgages Subject to Delinquent Principal or Interest
Commercial mortgage loans individually >3%
Loan A		Retail/United Kingdom	8.4%	Apr-27	Interest Only	$	481,607	$	478,646		$	—
Loan B		Retail/United Kingdom	8.3%	Oct-26	Interest Only	416,055		413,662		—	—
Loan C		Healthcare/Northeast	9.1%	Mar-27	Interest Only	354,549		351,523			—
Loan D		Mixed Use/United Kingdom	10.0%	Aug-25	Interest Only	366,861		368,641			—
Loan E		Hotel/Spain	7.0%	Aug-24	Interest Only	349,247		349,247			—
Loan F		Office/United Kingdom	9.7%	Feb-27	Interest Only	286,633		280,572			—
Loan G		Hotel/Various Europe	8.4%	Dec-28	Interest Only	275,975		272,582			—


Commercial mortgage loans individually <3%
First Mortgage	12	Hotel/Various	8.4%-13.0%	2024-2027	Interest Only	$	1,483,069	$	1,483,327		$	—
First Mortgage	7	Office/Various	6.8%-10.3%	2025-2028	Interest Only	1,197,193		1,192,434			—
First Mortgage	7	Residential/Various	0.0%-11.4%	2024-2027	Principal and Interest/ Interest Only	848,219		844,366			192,239
First Mortgage	3	Retail/Various	0.0%-9.7%	2024-2027	Interest Only	554,568		479,347			173,924
First Mortgage	3	Mixed Use/Various	9.1%-11.0%	2024-2027	Interest Only	304,582		310,661			—
First Mortgage	1	Industrial/Sweden	7.3%	May-26	Interest Only	248,088		246,876			—
First Mortgage	1	Healthcare/United Kingdom	9.4%	Oct-24	Principal and Interest	161,021		160,280			—
First Mortgage(3)	5	Other/Various	7.0%-10.6%	2026-2029	Interest Only	722,089		718,917			—
Total Commercial mortgage loans						$	8,049,756	$	7,951,081		$	366,163


Description	Number of Loans	Property Type/location	Contractual Interest Rate (1)	Maturity Date(2)	Periodic Payment	Principal Balance		Carrying Value		Principal Amount of Mortgages Subject to Delinquent Principal or Interest
Subordinate loans and other lending assets individually <3%
Subordinate Mortgage	2	Residential/New York City	0.0%	Sep-24	Interest Only	$	529,732	$	402,872	$	529,731
Subordinate Mortgage	1	Hotel/Southwest	11.5%	Jul-25	Principal and Interest	23,122		23,122		—
Subordinate Mortgage	1	Office/Midwest	11.0%	Sep-24	Interest Only	7,500		7,500		—
Total Subordinate loans and other lending assets(4)						$	560,354	$	433,494	$	529,731
Total loans(5)						$	8,610,110	$	8,384,575	$	895,894
General CECL Allowance(6)								(26,482)
Carrying value, net								$	8,358,093

———————

(1)Assumes applicable benchmark rate as of December 31, 2023 for all floating rate loans. For loans placed on non-accrual the interest rate noted above is 0%.

(2)Assumes all extension options are exercised.

(3)Includes a loan collateralized by a portfolio of office, industrial, and retail property types.

(4)Subject to prior liens of approximately $228.0 million. Represents only third-party liens.

(5)The aggregate cost for U.S. federal income tax purposes is $8.5 billion.

(6)Excludes $4.0 million of General CECL Allowance related to unfunded commitments on commercial mortgage loans, subordinate loans and other lending assets, net in 2023.

The following table summarizes the changes in the carrying amounts of our loan portfolio during 2023 and 2022 ($ in thousands):


Reconciliation of Carrying Amount of Loans	December 31, 2023		December 31, 2022
Balance at beginning of year	$	8,681,990	$	7,857,260

Loan fundings	929,106		3,624,661
Loan repayments and sales	(1,225,930)		(2,214,621)
Gain (loss) on foreign currency translation	175,707		(356,436)
Realized loss on investments (1)	(86,604)		(24,894)
Transfer to real estate owned, held for sale	(75,000)		(226,459)
Decrease (increase) in Specific CECL Allowance (2)	(59,500)		11,500
Decrease (increase) in General CECL Allowance (3)	(258)		7,364
Deferred fees and other items (4)	(16,453)		(46,874)
Payment-in-kind interest and amortization of fees	35,035		50,489
Balance at the close of year	$	8,358,093	$	8,681,990

———————

(1)During the year ended December 31, 2023, we recorded a $86.6 million realized loss on investments primarily comprised of i) a $4.8 million realized loss related to the acquisition of the Atlanta Hotel through a deed-in-lieu of foreclosure and ii) a $82.0 million realized loss representing a write-off of previously recorded Specific CECL Allowance on one of our subordinate loans secured by an ultra-luxury residential property in Manhattan, NY. These losses were partially offset by a $0.2 million gain on investments recorded in connection with the sale of our entire interest in three commercial loans secured by properties in Europe and a partial interest in one commercial loan secured by property located in London, United Kingdom. During the year ended December 31, 2022, we recorded a realized loss on investments

represented with a write-off of a previously recorded Specific CECL Allowance comprising of (i) a $17.9 million loss on a first mortgage loan secured by an urban predevelopment property following the sale of the underlying property, and (ii) a $7.0 million loss, related to a first mortgage secured by the Atlanta hotel in anticipation of consensual foreclosure in the first quarter of 2023.

(2)The Specific CECL Allowance increased $59.5 million during 2023. During the year ended December 31, 2023, we recorded a $141.5 million increase to our Specific CECL Allowance, related to two mezzanine loans secured by the same ultra-luxury residential property in Manhattan, NY. As of June 30, 2023, $82.0 million related to the most junior mezzanine loan was deemed unrecoverable. Accordingly, $82.0 million of previously recorded Specific CECL was written-off and recorded as a realized loss within net realized loss on investments during the second quarter of 2023. The $11.5 million decrease during the year ended December 31, 2022 was comprised of i) a reversal and write-off of a previously recorded Specific CECL Allowance of $53.0 million and $15.0 million, respectively, on an urban predevelopment first mortgage loan in Miami, FL and ii) a $10.0 million reversal of a previously recorded Specific CECL Allowance on a loan related to a multifamily development in Brooklyn, NY. These write-offs and reversals recorded during the year ended December 31, 2022 were offset by the Specific CECL Allowance of $66.5 million recorded in relation to a mezzanine loan secured by our interest in an ultra-luxury residential property in Manhattan, NY.

(3)$4.0 million and $4.3 million as of December 31, 2023 and 2022, respectively of the General CECL Allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability on our consolidated balance sheets.

(4)Other items primarily consist of purchase discounts or premiums, exit fees and deferred origination expenses, as well as $2.5 million and $3.2 million in cost recovery proceeds in 2023 and 2022, respectively.