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Ares Commercial Real Estate Cuts Dividend Amid Losses

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Ares Commercial Real Estate Cuts Dividend Amid Losses

The latest update is out from Ares Commercial ( (ACRE) ).

Ares Commercial Real Estate Corporation reported a GAAP net loss of $10.7 million for the fourth quarter of 2024 and $35.0 million for the full year. In response to the financial results and a more flexible balance sheet, the company has reduced its quarterly dividend to $0.15 per share for the first quarter of 2025. Additionally, the company has improved its liquidity position by collecting $166 million in repayments, increasing available capital to over $200 million. This increase is intended to enhance the company’s ability to address underperforming loans and optimize financial outcomes. Ares has also made progress in resolving risk-rated loans, reducing them by 34% over the past year.

More about Ares Commercial

Ares Commercial Real Estate Corporation is a specialty finance company focused on directly originating and investing in commercial real estate loans and related investments. It provides a range of financing solutions through its national direct origination platform, targeting commercial real estate owners and operators across the United States. The company focuses on senior mortgage loans, subordinate financings, mezzanine debt, and preferred equity, primarily in liquid markets. Ares Commercial Real Estate Corporation operates as a real estate investment trust and is managed by a subsidiary of Ares Management Corporation.

YTD Price Performance: 2.35%

Average Trading Volume: 582,073

Technical Sentiment Consensus Rating: Buy

Current Market Cap: $324.5M

Find detailed analytics on ACRE stock on TipRanks’ Stock Analysis page.

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