Ares Commercial Real Estate ( (ACRE) ) has released its Q3 earnings. Here is a breakdown of the information Ares Commercial Real Estate presented to its investors.
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Ares Commercial Real Estate Corporation is a specialty finance company focused on originating and investing in commercial real estate loans and related investments, operating primarily in the real estate finance sector across the United States through a national direct origination platform. The company is managed externally by a subsidiary of Ares Management Corporation and is structured as a real estate investment trust.
In its third-quarter 2024 earnings report, Ares Commercial Real Estate Corporation announced a GAAP net loss of $5.9 million, translating to a loss of $0.11 per diluted common share. Despite this, the company reported Distributable Earnings of $3.7 million or $0.07 per diluted common share. A regular cash dividend of $0.25 per common share for the fourth quarter of 2024 was declared, showcasing the company’s commitment to returning value to shareholders.
The company highlighted its focus on strengthening its balance sheet and resolving underperforming loans, which saw a 33% decline in risk-rated 4 and 5 loans. Ares Commercial Real Estate’s strategic efforts also resulted in an 8% reduction in outstanding debt, reflecting a continued commitment to de-leveraging and maintaining strong liquidity levels. These moves align with its long-term strategy to position the company for enhanced portfolio growth and increased earnings.
Despite current challenges, including a reported net loss, Ares Commercial Real Estate Corporation is optimistic about its future prospects. The company’s management believes that the strengthened balance sheet and the strategic direction facilitated by their Ares Real Estate Group will enable effective resolution of remaining underperforming assets, paving the way for future growth and profitability in the competitive real estate finance market.
