IRR Inform Resources Corp

Apollo Commercial Real Estate Finance, Inc. (the "Company" or "ARI") (NYSE: ARI)
today announced the Company closed two commercial real estate loan transactions
totaling $54.5 million. Year-to-date, ARI has committed to invest in over $728
million of commercial real estate loan transactions and CMBS.


New Investments
ARI's new investments include the following:



--  $20.0 million floating-rate mezzanine loan secured by the equity
    interest in a 280-key hotel in the NoMad neighborhood of New York City.
    The mezzanine loan has a two-year initial term and three one-year
    extension options and an appraised loan-to-value ("LTV") of 61%. The
    mezzanine loan was underwritten to generate an internal rate of return
    ("IRR")(1) of approximately 12%; and
--  $34.5 million ($30 million of which was funded at closing) floating-
    rate, first mortgage loan secured by a newly constructed, Class-A, 63-
    unit multifamily property located in Brooklyn, New York, which also
    includes approximately 7,300 square feet of retail space and 31 parking
    spaces. The first mortgage loan has a five-year initial term with three
    one-year extension options and an appraised LTV of 63% based upon the
    initial funding. The future funding is contingent upon the property
    achieving certain occupancy and cash flow hurdles. ARI financed the
    loan, and on a levered basis, the loan was underwritten to generate an
    IRR(1) of approximately 12%.



Commenting on the transactions, Scott Weiner, the Chief Investment Officer of
the Company's Manager, said: "New York City continues to be one of the strongest
hospitality markets and this transaction is with a well-capitalized, highly
regarded sponsor. In addition, Brooklyn has one of the nation's highest
occupancy rates for rental apartments, and the multifamily property securing
ARI's loan is well positioned in a desirable submarket. As the investment
portfolio expands, we believe ARI continues to demonstrate the depth of the
Company's commercial real estate finance platform as well as its ability to
structure and execute a broad array of transactions."


About Apollo Commercial Real Estate Finance, Inc. 
Apollo Commercial Real Estate Finance, Inc. (NYSE: ARI) is a real estate
investment trust that primarily originates, invests in, acquires and manages
performing commercial first mortgage loans, subordinate financings, CMBS and
other commercial real estate-related debt investments. The Company is externally
managed and advised by ACREFI Management, LLC, a Delaware limited liability
company and an indirect subsidiary of Apollo Global Management, LLC, a leading
global alternative investment manager with approximately $159.3 billion of
assets under management at March 31, 2014. 


(1) The underwritten IRR for the investments listed in this press release
reflect the returns underwritten by ACREFI Management, LLC, the Company's
external manager (the "Manager"), calculated on a weighted average basis
assuming no dispositions, early prepayments or defaults. With respect to certain
loans, the underwritten IRR calculation assumes certain estimates with respect
to the timing and magnitude of future fundings for the remaining commitments and
associated loan repayments, and assumes no defaults. IRR is the annualized
effective compounded return rate that accounts for the time-value of money and
represents the rate of return on an investment over a holding period expressed
as a percentage of the investment. It is the discount rate that makes the net
present value of all cash outflows (the costs of investment) equal to the net
present value of cash inflows (returns on investment). It is derived from the
negative and positive cash flows resulting from or produced by each transaction
(or for a transaction involving more than one investment, cash flows resulting
from or produced by each of the investments), whether positive, such as
investment returns, or negative, such as transaction expenses or other costs of
investment, taking into account the dates on which such cash flows occurred or
are expected to occur, and compounding interest accordingly. There can be no
assurance that the actual IRRs will equal the underwritten IRRs shown in this
press release. See "Item 1A-Risk Factors--The Company may not achieve its
underwritten internal rate of return on its investments which may lead to future
returns that may be significantly lower than anticipated" included in the
Company's Annual Report on Form 10-K for the year ended December 31, 2013 for a
discussion of some of the factors that could adversely impact the returns
received by the Company from the investments shown in the press release over
time.


Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking
statements as such term is defined in Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as amended,
and such statements are intended to be covered by the safe harbor provided by
the same. Forward-looking statements are subject to substantial risks and
uncertainties, many of which are difficult to predict and are generally beyond
the Company's control. These forward-looking statements include information
about possible or assumed future results of the Company's business, financial
condition, liquidity, results of operations, plans and objectives. When used in
this release, the words believe, expect, anticipate, estimate, plan, continue,
intend, should, may or similar expressions, are intended to identify
forward-looking statements. Statements regarding the following subjects, among
others, may be forward-looking: the return on equity; the yield on investments;
the ability to borrow to finance assets; the Company's ability to deploy the
proceeds of its capital raises or acquire its target assets; and risks
associated with investing in real estate assets, including changes in business
conditions and the general economy. For a further list and description of such
risks and uncertainties, see the reports filed by the Company with the
Securities and Exchange Commission. The forward-looking statements, and other
risks, uncertainties and factors are based on the Company's beliefs, assumptions
and expectations of its future performance, taking into account all information
currently available to the Company. Forward-looking statements are not
predictions of future events. The Company disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by law. 



FOR FURTHER INFORMATION PLEASE CONTACT: 

CONTACT: 
Hilary Ginsberg
Investor Relations 
(212) 822-0767

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