Company: ARI
Filing Date: 2025-02-10
Form Type: 10-K
Source: 0000950170-25-017122
Chunk: 101

Company: Apollo Commercial Real Estate Finance, Inc.
Filing Date: 2025-02-10
Form: 10-K
Item: Item 8
Chunk 101
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 allowance included the following, among others:

•We tested the operating effectiveness of controls over management's review of the fair value analysis including controls over management's review of the assumptions used within the fair value analysis including, but not limited to, discount rate and capitalization rate and the inputs used within the fair value analysis. These inputs include, but are not limited to, debt service coverage ratio, occupancy, and microeconomic and macroeconomic conditions that could impact the property.

•We evaluated the Company's determination of fair value by performing the following:

•With the assistance of our fair value specialists, we evaluated the reasonableness of the (1) valuation methodology; (2) significant assumptions made, including whether the significant inputs used in the model were appropriate and consistent with what market participants would use to value the collateral; and (3) mathematical accuracy of the overall valuation model. 

•We tested the underlying data used to develop the fair value to determine that the information used in the analysis was accurate and complete.

•We performed a sensitivity analysis when deemed necessary based on results of other audit procedures performed for comparison to the Company's fair value analysis.

•We considered whether events or transactions that occurred after the balance sheet date but before the completion of the audit affect the conclusions reached on the fair value measures and disclosures.

/s/ DELOITTE & TOUCHE LLP

New York, New YorkFebruary 10, 2025

We have served as the Company's auditor since 2009.

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PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Apollo Commercial Real Estate Finance, Inc. and Subsidiaries

Consolidated Balance Sheets

(in thousands—except share data)

    December 31, 2024

    December 31, 2023

    Assets:

    Cash and cash equivalents
     
    $
    317,396

    $
    225,438

    Commercial mortgage loans, net(1)(3)

    6,715,347

    7,925,359

    Subordinate loans, net(2)(3)

    388,809

    432,734

    Real estate owned, held for investment, net(4) (net of $23,266 and $10,404 accumulated depreciation in 2024 and 2023, respectively)

    752,643

    519,498

    Other assets

    138,027

    85,623

    Derivative