Corporate GovernanceApr 24, 2026, 05:22 PM
ARI Amends Management Agreement, Shifts to Stock-Based Fees
AI Summary
Apollo Commercial Real Estate Finance, Inc. (ARI) has entered into an Amended and Restated Management Agreement with ACREFI Management, LLC, effective April 24, 2026. This new agreement revises the base management fee structure, introducing a performance-based component and shifting the payment method primarily to Company Common Stock. The fee will be 0.75% of stockholders' equity if the annualized return on equity (ROE) is below 7.5%, and 1.5% if ROE is 7.5% or higher.
Key Highlights
- New A&R Management Agreement supersedes the 2009 Existing Management Agreement.
- Base management fee is 0.75% if annualized ROE is less than 7.5%.
- Base management fee is 1.5% if annualized ROE equals or exceeds 7.5%.
- Base management fee is now primarily payable in Company Common Stock.