Company: ARI
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0000950170-25-017122
Chunk: 127

Company: Apollo Commercial Real Estate Finance, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 8
Chunk 127
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 from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our consolidated balance sheets.Risk RatingWe assess the risk factors of each loan and assign a risk rating based on a variety of factors, including, without limitation, loan to value ("LTV") ratio, debt yield, property type, geographic and local market dynamics, physical condition, cash flow volatility, leasing and tenant profile, loan structure and exit plan, and project sponsorship. We apply these various factors on a case-by-case basis depending on the facts and circumstances for each loan, and the different factors may be given different weightings in different situations. This review is performed quarterly. Based on a 5-point scale, our loans are rated "1" through "5," from less risk to greater risk, which ratings are defined as follows: 1. Very low risk2. Low risk  3. Moderate/average risk  4. High risk/potential for loss: a loan that has a risk of realizing a principal loss  5. Impaired/loss likely: a loan that has a high risk of realizing principal loss, has incurred principal loss, or an impairment has been recorded   The following tables present the carrying value of our loan portfolio by year of origination and internal risk rating and gross write-offs by year of origination as of December 31, 2024 and December 31, 2023, respectively ($ in thousands): 

        December 31, 2024

        Amortized Cost(1) by Year Originated

        Risk Rating
         
        Number of Loans

        Total

        % of Portfolio

        2024

        2023

        2022

        2021

        2020

        Prior

        1

        —

        $
        —

        — %

        $
        —

        $
        —

        $
        —

        $
        —

        $
        —

        $
        —

        2

        3

        560,180

        7.9%

        —

        —

        547,851

        12,329

        —

        —

        3

        37

        6,169,860

        86.4%

        1,218,189

        649,599

        1,549,750

        1,173,982

        397,972