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ACRE

Ares Commercial Real Estate Corporation

ACRE

Ares Commercial Real Estate Corporation • NYSE
$5.30 ▲ 1.15% (+0.06)
Market Cap $291.64 M
52w High $7.27
52w Low $3.35
Dividend Yield 0.60%
P/E -37.86
Volume 284.10K
Outstanding Shares 55.03M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $16.295M ▲ $5.46M ▼ $4.653M ▲ 28.555% ▼ $0.08 ▲ $0 ▼
Q2-2025 $-4.334M ▼ $6.122M ▼ $-11.035M ▼ 254.615% ▲ $-0.2 ▼ $7.303M ▲
Q1-2025 $14.948M ▲ $14.948M ▲ $9.345M ▲ 62.517% ▼ $0.17 ▲ $0
Q4-2024 $-490K ▼ $-490K ▼ $-10.664M ▼ 2.176K% ▲ $-0.2 ▼ $0
Q3-2024 $10.887M $10.887M $-5.88M -54.009% $-0.11 $0

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $84.869M ▼ $1.392B ▼ $870.884M ▼ $520.983M ▼
Q2-2025 $89.985M ▼ $1.439B ▼ $914.939M ▼ $523.699M ▼
Q1-2025 $125.496M ▲ $1.52B ▼ $977.477M ▼ $542.144M ▲
Q4-2024 $63.799M ▼ $1.751B ▼ $1.211B ▼ $540.132M ▼
Q3-2024 $95.886M $1.941B $1.377B $563.753M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $4.653M ▲ $3.837M ▼ $113.196M ▲ $-87.292M ▼ $29.741M ▲ $3.837M ▼
Q2-2025 $-11.035M ▼ $4.88M ▼ $26.259M ▼ $-66.087M ▲ $-34.948M ▼ $4.895M ▼
Q1-2025 $9.345M ▲ $8.01M ▲ $298.739M ▲ $-243.96M ▼ $62.789M ▲ $7.995M ▲
Q4-2024 $-10.664M ▼ $7.072M ▼ $172.668M ▲ $-185.793M ▼ $-6.053M ▼ $7.072M ▼
Q3-2024 $-5.881M $8.432M $121.525M $-128.259M $1.698M $8.432M

Revenue by Products

Product Q1-2016Q1-2025Q2-2025Q3-2025
Reportable Segment
Reportable Segment
 $0 ▲$10.00M ▲$10.00M ▲$10.00M ▲
A C R E Capital L L C
A C R E Capital L L C
 $0 ▲$0 ▲$0 ▲$0 ▲
Ares Commercial Real Estate Corporation Together With Consolidated Subsidiaries
Ares Commercial Real Estate Corporation Together With Consolidated Subsidiaries
 $10.00M ▲$0 ▼$0 ▲$0 ▲

Five-Year Company Overview

Income Statement

Income Statement Earnings have clearly come under pressure. A few years ago the business was solidly profitable, but recent periods show losses instead of gains. This shift suggests rising credit costs, stressed loans, and more conservative marks on the portfolio. The overall pattern is one of relatively stable core interest income, but offset by higher provisions, write‑downs, and other charges that are eroding net results. In short, profitability has swung from reasonably strong to meaningfully challenged, and earnings per share have moved from healthy to negative.

Balance Sheet

Balance Sheet The balance sheet shows a leveraged lender with shrinking asset and equity bases. Total assets have drifted down from prior peaks, and debt remains high relative to equity, which is typical for a mortgage REIT but still an important risk point. Cash on hand is modest, leaving limited immediate liquidity cushion and making continued access to financing markets important. Equity has trended lower, hinting at pressure from losses and portfolio marks. Overall, the balance sheet looks adequate for the model but not especially conservative, and it is sensitive to credit quality and funding conditions.

Cash Flow

Cash Flow Despite weak reported earnings, cash generation from operations has stayed positive and relatively steady over the last several years. Capital spending is essentially nonexistent, so most operating cash converts directly into free cash flow, which is typical for a financial lender rather than a property owner. This means the business model still produces cash, but the gap between cash flow and accounting earnings likely reflects credit reserves, non‑cash charges, and portfolio adjustments. The key question is whether current cash generation is sustainable if loan performance remains under strain.

Competitive Edge

Competitive Edge ACRE’s main edge is its link to the broader Ares Management platform. That connection provides deal flow, market intelligence, relationships with borrowers and capital providers, and a reputation that smaller standalone lenders often lack. The company also offers a wide toolkit of financing structures, from senior loans to mezzanine and preferred equity, which can make it a flexible partner for complex deals. However, recent credit issues and office‑related stress show that platform advantages do not fully shield it from sector downturns. Competitive strength is solid on sourcing and structuring, but asset quality and execution are current weak spots.

Innovation and R&D

Innovation and R&D Innovation here is about process and platform, not traditional R&D or flashy technology. ACRE leans on Ares’ analytical frameworks, underwriting discipline, and nationwide origination network rather than proprietary software. The focus going forward appears to be on tightening credit standards, using platform data and experience to better manage risk, and stabilizing troubled loans rather than pushing into new, untested products. Any “innovation” is likely to show up as refinements in underwriting, portfolio management, and capital structure, rather than visible technology initiatives.

Summary

ACRE is a mortgage REIT under real stress from credit cycles and commercial real estate headwinds, especially in areas like offices. Financial performance has moved from profitable to loss‑making, equity has been pressured, and leverage and liquidity need to be watched closely. On the positive side, the company continues to generate cash, has access to the scale and expertise of Ares Management, and offers a broad range of financing solutions that can be valuable in a dislocated market. The overall story is a lender with meaningful structural advantages but currently working through a difficult phase of loan performance and balance‑sheet repair, where execution on risk management and portfolio cleanup will be crucial to its future trajectory.

NEWS

November 7, 2025 · 6:00 AM UTC

Ares Commercial Real Estate Corporation Reports Third Quarter 2025 Results

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October 30, 2025 · 4:30 PM UTC

Ares Commercial Real Estate Corporation Schedules Earnings Release and Conference Call for the Third Quarter Ended September 30, 2025

Read more