Ares Commercial's business showed stabilization in Q1 with no realized loan losses and progress in debt reduction, signaling a potential turnaround. Despite not fully covering its dividend with distributable earnings, the REIT's improving trajectory suggests positive dividend coverage could return soon. Shares trade at a significant discount to book value, presenting a compelling rebound opportunity for 2025 as the business stabilizes.

US equity markets posted modest declines this past week after the Federal Reserve held rates steady and maintained its status quo "wait-and-see" approach, but acknowledged heightened inflation and labor market risks. Meanwhile, White House officials headed to Switzerland to begin high-level trade talks with China, which follows the announcement of the first major post-Liberation Day trade deal with the United Kingdom. Following its best two-week stretch since late 2022, the S&P 500 slipped 0.4% this week - extending its drawdown to around 8% from its mid-February record highs.

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 $9.3 million or $0.17 per diluted common share and Distributable Earnings(1) of $7.2 million or $0.13 per diluted common share for the first quarter of 2025. “In the first quarter, we successfully increased liqui.

NEW YORK--(BUSINESS WIRE)--Ares Commercial Real Estate Corporation (NYSE: ACRE) announced today that it will report earnings for the first quarter ended March 31, 2025 on Wednesday, May 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 12:00 p.m. Eastern Time to discuss its first quarter ended March 31, 2025 financial results. All interested parties are invited to participate via telephon.

The market is experiencing significant turmoil due to the largest round of U.S. tariffs in 100 years, affecting nearly every asset class. ACRE faces increasing trouble from rising non-performing loans and insufficient distributable earnings, leading to a 35% decline in shares and a reduced dividend. Despite a lower valuation relative to book value, ACRE's outlook remains bleak due to emerging risks and economic uncertainties, earning it a Hold rating.

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Ares Commercial Real Estate announced a 40% dividend cut for Q1 '25, reducing the quarterly dividend to $0.15 per-share. Persistent loan quality issues, particularly in the office portfolio, forced ACRE to divest loans at a loss and reduce financial leverage. Shares trade at a 50%+ discount to book value, reflecting deep investor distrust despite the REIT's efforts to de-risk and reset for growth.

Ares Commercial Real Estate Corporation cut its dividend by 40% due to persistent loan quality issues and underperforming distributable earnings, following a 24% cut in early 2024. The mortgage REIT's book value has declined significantly, now trading at a 50% discount due to ongoing loan losses and a contracting net interest margin. Despite the dividend cuts, the trust's pay-out metrics remain unstable, leading to a 'Hold' rating as concerns about the company's financial stability persist.

US equity markets flirted with fresh record-highs this week while benchmark interest rates hovered around two-month lows as investors weighed positive earnings news against uncomfortable hot inflation data. Complicating the policy outlook for the Federal Reserve, CPI data showed the fastest monthly rise in consumer prices since August, prompting a pledge from Powell for "more work to do." Snapping a two-week losing streak, the S&P 500 rebounded by 1.5%, closing fractionally below its prior record-high set in late January. The tech-heavy Nasdaq 100 rallied nearly 3%.