Company: ARI
Filing Date: 2025-04-29
Form Type: DEF 14A
Source: 0001193125-25-104054
Chunk: 52

Company: Apollo Commercial Real Estate Finance, Inc.
Filing Date: 2025-04-29
Form: DEF 14A
Chunk 52
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 Operations—Non-GAAPFinancial Measures” in our annual report on Form 10-Kfor the year ended December 31, 2024, filed with the SEC on February 10, 2025. Distributable Earnings, a non-GAAP financial measure, is defined as net income available to common stockholders, computed in accordance with GAAP, adjusted for (i) equity-based compensation expense (a portion of which may become cash-based upon final vesting and settlement of awards should the holder elect net share settlement to satisfy income tax withholding), (ii) any unrealized gains or losses or other non-cash items (including depreciation and amortization related to real estate owned) included in net income available to common stockholders, (iii) unrealized income from unconsolidated joint ventures, (iv) foreign currency gains (losses), other than (a) realized gains/(losses) related to interest income, and (b) forward point gains/(losses) realized on our foreign currency hedges, (v) the non-cash amortization expense related to the reclassification of a portion of the Convertible Notes to stockholders’ equity in accordance with GAAP, and (vi) provision for current expected credit losses. Distributable Earnings may also be adjusted to exclude certain other non-cash items, as determined by the Manager and approved by a majority of our independent directors. We believe that our investors use Distributable Earnings, or a comparable supplemental performance measure, to evaluate and compare the performance of our Company and our peers. Dividend Coverage Ratio represents the ratio of Distributable Earnings to dividends paid to common stockholders for the applicable period. Book value per share represents common stockholders’ equity divided by the number of shares of Common Stock outstanding for the applicable period. Pension Benefits Our named executive officers received no benefits in the 2024 fiscal year from us under defined pension or defined contribution plans. Nonqualified Deferred Compensation Our Company does not have a nonqualified deferred compensation plan that provides for deferral of compensation on a basis that is not tax-qualifiedfor our named executive officers. Potential Payments Upon Termination or Change in Control Our named executive officers are employees of our Manager or its affiliates and therefore we generally have no obligation to pay them any form of compensation upon their termination of employment, except with respect - 39 -

to the restricted stock unit award agreements entered into between such named executive officers and our Company. These agreements provide that any unvested portion of the award shall be immediately and irrevoc