Ares Commercial Real Estate

ACRE

Market cap $287M

Ares Commercial Real Estate (ACRE) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

Ares Commercial Real Estate Corporation is a small, distressed CRE REIT with significant exposure to troubled office loans. ACRE trades at just 51% of book value, reflecting market skepticism about the accuracy of its reported asset values and loan reserves. The fund is shrinking, not originating new loans, and likely understating needed loan loss reserves, with further dividend cuts expected.

Deep value picks are ready for a major rebuild and growth. ACRE (+12% yield) is working out bad loans to boost cash flow. AQN is stabilizing and benefiting from lower interest expense.

Over 200 U.S. REITs and homebuilders have reported third-quarter earnings results over the past five weeks, providing critical information on the state of the commercial and residential real estate industry. Overall, REIT earnings results were marginally better than consensus expectations despite a handful of high-profile flops that overshadowed some impressive individual results across a balanced mix of sectors. Two-thirds of the sector (67 REITs) raised their full-year FFO outlook—above the historical average of 65%. Notable winners included Industrial, Senior Housing, Data Center, Retail, and Billboard REITs.

During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a high dividend payout.

Ares Commercial Real Estate Corporation faces ongoing challenges with distressed loans and a shrinking portfolio, despite a high 11.9% dividend yield. ACRE trades at a 50% discount to tangible book value, but risks from maturing bank debt and low loan yields outweigh potential upside. The company's focus on portfolio stabilization and safer financing is critical, as further dividend cuts are likely if revenue continues to decline.

Ares Commercial Real Estate Corporation ( ACRE ) Q3 2025 Earnings Call November 7, 2025 10:00 AM EST Company Participants John Stilmar - Managing Director of Public Investor Relations & Corporate Communications Group Bryan Donohoe - CEO & Director Jeffrey Gonzales - CFO & Treasurer Conference Call Participants Steve Delaney Jade Rahmani - Keefe, Bruyette, & Woods, Inc., Research Division Presentation Operator Good morning, and welcome to Ares Commercial Real Estate Corporation's Third Quarter Earnings Conference Call. [Operator Instructions].

Ares Commercial Real Estate (ACRE) came out with quarterly earnings of $0.1 per share, beating the Zacks Consensus Estimate of a loss of $0.09 per share. This compares to earnings of $0.07 per share a year ago.

NEW YORK--(BUSINESS WIRE)--Ares Commercial Real Estate Corporation (the “Company”) (NYSE:ACRE), a specialty finance company primarily engaged in directly originating and investing in commercial real estate assets, reported generally accepted accounting principles (“GAAP”) net income of $4.7 million or $0.08 per diluted common share and Distributable Earnings(1) of $5.5 million or $0.10 per diluted common share for the third quarter of 2025. “In the third quarter, we delivered increased sequenti.

NEW YORK--(BUSINESS WIRE)--Ares Commercial Real Estate Corporation (NYSE: ACRE) announced today that it will report earnings for the third quarter ended September 30, 2025 on Friday, November 7, 2025 prior to the opening of the New York Stock Exchange. Ares Commercial Real Estate Corporation will hold its webcast/conference call on the same day at 10:00 a.m. Eastern Time to discuss its third quarter ended September 30, 2025 financial results. All interested parties are invited to participate vi.