Waterfall Asset Management fully exited its position in Apollo Commercial Real Estate Finance (ARI +1.01%) during the first quarter, selling 569,000 shares in a move estimated at $5.92 million based on quarterly average pricing, according to a May 8, 2026, SEC filing.
What happened
According to a Securities and Exchange Commission (SEC) filing dated May 8, 2026, Waterfall Asset Management sold its entire holding of 569,000 Apollo Commercial Real Estate Finance shares, with the estimated transaction value totaling $5.92 million based on the average closing price during the first quarter. The fund reported no remaining shares in ARI at quarter end, marking a full exit from the position.
What else to know
- Top five holdings following the quarter:
- NYSE:CPT: $12.86 million (11.24% of AUM)
- NYSE:AVB: $12.28 million (10.73% of AUM)
- NYSE:APLE: $10.77 million (9.41% of AUM)
- NYSE:RITM: $9.73 million (8.51% of AUM)
- NYSE:MRP: $9.10 million (7.95% of AUM)
- As of May 7, 2026, Apollo Commercial Real Estate Finance shares were priced at $10.91, up about 15% over the past year, compared to a 30% gain for the S&P 500.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close 2026-05-07) | $10.91 |
| Market Capitalization | $1.46 billion |
| Revenue (TTM) | $263.3 million |
| Net Income (TTM) | $126.96 million |
Company Snapshot
- Apollo Commercial Real Estate Finance originates, acquires, and manages commercial first mortgage loans, subordinate financings, and other commercial real estate-related debt investments in the United States.
- The firm operates as a real estate investment trust (REIT), generating income primarily from interest on commercial real estate debt investments and distributing at least 90% of taxable income to shareholders.
- It targets institutional and commercial borrowers seeking financing for commercial real estate projects across major U.S. markets.
Apollo Commercial Real Estate Finance, Inc. is a publicly traded mortgage REIT focused on originating and investing in commercial real estate debt. Apollo Commercial Real Estate Finance, Inc. originates, acquires, invests in, and manages commercial first mortgage loans, subordinate financings, and other commercial real estate-related debt investments in the United States. Apollo Commercial Real Estate Finance, Inc. manages a portfolio of commercial first mortgage loans, subordinate financings, and other commercial real estate-related debt investments in the United States.
What this transaction means for investors
Apollo Commercial Real Estate Finance continues to generate cash flow, but growth has been relatively muted, making this look like some portfolio cleanup in a part of the market that still carries real uncertainty. In first-quarter results released last week, the company reported net income of $0.16 per diluted share and distributable earnings of $0.22 per share. As a mortgage REIT, ARI depends heavily on spread income from commercial real estate loans, making performance closely tied to financing conditions and property market health.
The broader context matters too. While ARI shares gained about 15% over the past year, they still badly trailed the S&P 500’s roughly 30% return. Meanwhile, Waterfall’s remaining top holdings lean more toward apartment REITs and residential-linked names like Camden Property Trust and AvalonBay, suggesting the firm may simply prefer property sectors with cleaner fundamentals right now.
Ultimately, commercial real estate debt has stabilized from its worst levels, but plenty of investors remain cautious about office exposure, refinancing risk, and whether higher rates will keep pressuring property values longer than expected.
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