Fitch Ratings has assigned ratings and Rating Outlooks to AREIT 2024-CRE9 Ltd as follows.

RATING ACTIONS

Entity / Debt

Rating

Prior

AREIT 2024-CRE9

A

LT

AAAsf

New Rating

AAA(EXP)sf

A-S

LT

AAAsf

New Rating

AAA(EXP)sf

B

LT

AA-sf

New Rating

AA-(EXP)sf

C

LT

A-sf

New Rating

A-(EXP)sf

D

LT

BBBsf

New Rating

BBB(EXP)sf

E

LT

BBB-sf

New Rating

BBB-(EXP)sf

F

LT

BB-sf

New Rating

BB-(EXP)sf

G

LT

B-sf

New Rating

B-(EXP)sf

Preferred Shares

LT

NRsf

New Rating

NR(EXP)sf

Page

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VIEW ADDITIONAL RATING DETAILS

$396,877,000a class A 'AAAsf'; Outlook Stable;

$61,058,000a class A-S 'AAAsf'; Outlook Stable;

$47,490,000a class B 'AA-sf'; Outlook Stable;

$39,857,000a class C 'A-sf'; Outlook Stable;

$27,137,000a class D 'BBBsf'; Outlook Stable;

$12,721,000a class E 'BBB-sf'; Outlook Stable;

$26,289,000b class F 'BB-sf'; Outlook Stable;

$18,656,000b class G 'B-sf'; Outlook Stable.

The following class is not rated by Fitch:

$48,338,329b Preferred Shares.

(a)	Privately placed and pursuant to Rule 144A.
(b)	Horizontal risk retention interest, comprising 7.125% of the securities.

The approximate collateral interest balance as of the cutoff date is $678,423,330. This does not include future funding of $41,046,670.

An affiliate of the Issuer will own the class F and G notes and the Preferred Shares at closing.

The ratings are based on information provided by the issuer as of May 1, 2024.

Transaction Summary

The notes represent the beneficial ownership interest in the trust, primary assets of which are 15 loans secured by 22 commercial properties having an aggregate principal balance of $678,423,330 as of the cut-off date. The loans were contributed to the trust by Argentic Real Estate Investment 2 LLC.

The servicer is Situs Asset Management LLC, and the special servicer is Argentic Services Company LP. The trustee is Wilmington Trust, National Association, and the note administrator is Computershare Trust Company, N.A. The notes follow a sequential paydown structure.

Fitch reviewed a comprehensive sample of the transaction's collateral, including site inspections on 59.8% of the loans by balance, and cash flow analysis and asset summary reviews on 100% of the pool.

KEY RATING DRIVERS

Fitch Net Cash Flow: Fitch performed cash flow analyses on 15 loans totaling 100.0% of the pool by balance. Fitch's resulting net cash flow (NCF) of $36.0 million represents an 11.7% decline from the issuer's underwritten NCF of $40.8 million, excluding loans for which Fitch conducted an alternate value analysis.

Lower Fitch Leverage: The pool has lower leverage compared to recent CRE CLO transactions rated by Fitch. The pool's Fitch loan-to-value ratio (LTV) of 129.1% is better than the 2023 CRE CLO average of 171.2%. The pool's Fitch NCF debt yield (DY) of 6.9% is better than the 2023 CRE CLO average of 5.6%.

Higher Pool Concentration: The pool is more concentrated than recently rated Fitch CRE CLO transactions. The top 10 loans make up 79.8% of the pool, which is higher than the 2023 CRE CLO average of 62.5%. Fitch measures loan concentration risk with an effective loan count, which accounts for both the number and size of loans in the pool. The pool's effective loan count is 15.4. Fitch views diversity as a key mitigant to idiosyncratic risk. Fitch raises the overall loss for pools with effective loan counts below 40.

Limited Amortization: Based on the scheduled balances at the end of the fully extended loan term, the pool will pay down by 0.1%, which is worse than the 2023 CRE CLO average of 1.7%. The pool has 14 IO loans (93.5% of the pool), which is worse than the 2023 CRE CLO average of 35.3%.

SUMMARY OF FINANCIAL ADJUSTMENTS

Cash Flow Modeling - This transaction utilizes note protection tests to provide additional credit enhancement (CE) to the investment-grade note holders, if needed. As a result of this structural feature, Fitch's analysis of the transaction included an evaluation of the liabilities structure under different stress scenarios. To undertake this evaluation, Fitch used the cash flow modeling referenced in the Fitch criteria, 'U.S. and Canadian Multiborrower CMBS Rating Criteria.'

Different scenarios were run where asset default timing distributions and recovery timing assumptions were stressed. Key inputs, including Rating Default Rate (RDR) and Rating Recovery Rate (RRR), were based on the CMBS multiborrower model output in combination with CMBS analytical insight. The cash flow modeling results showed that the default rates in the stressed scenarios did not exceed the available CE in any stressed scenario.

RATING SENSITIVITIES

Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade

Declining cash flow decreases property value and capacity to meet its debt service obligations. The table below indicates the model-implied rating sensitivity to changes in one variable, Fitch NCF:

Original Rating: 'AAAsf' / AAAsf' / 'AA-sf' / 'A-sf' / 'BBBsf' / 'BBB-sf' / 'BB-sf' / 'B-sf';

10% NCF Decline: 'AAAsf' / 'AAsf' / 'Asf' / 'BBBsf' / 'BB+sf' / 'BBsf' / 'Bsf' / less than 'CCCsf'.

Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade

Improvement in cash flow increases property value and capacity to meet its debt service obligations. The table below indicates the model-implied rating sensitivity to changes to in one variable, Fitch NCF:

Original Rating: 'AAAsf' / AAAsf' / 'AA-sf' / 'A-sf' / 'BBBsf' / 'BBB-sf' / 'BB-sf' / 'B-sf';

10% NCF Increase: 'AAAsf' / 'AAAsf' / 'AAsf' / 'Asf' / 'BBB+sf' / 'BBBsf' / 'BBsf' / 'Bsf'.

USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10

Fitch was provided with Form ABS Due Diligence-15E (Form 15E) as prepared by KPMG LLP. The third-party due diligence described in Form 15E focused on a comparison and re-computation of certain characteristics with respect to each of the mortgage loans. Fitch considered this information in its analysis and it did not have an effect on Fitch's analysis or conclusions.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

REPRESENTATIONS, WARRANTIES AND ENFORCEMENT MECHANISMS

A description of the transaction's representations, warranties and enforcement mechanisms (RW&Es) that are disclosed in the offering document and which relate to the underlying asset pool is available by clicking the link to the Appendix. The appendix also contains a comparison of these RW&Es to those Fitch considers typical for the asset class as detailed in the Special Report titled 'Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transactions'.

ESG Considerations

The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.

Additional information is available on www.fitchratings.com

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