Ares Commercial Real Estate ( (ACRE) ) has released its Q4 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 that focuses on directly originating and investing in commercial real estate loans and related investments. As a real estate investment trust, it offers flexible financing solutions for commercial property owners and operators across the United States.
In its latest earnings report, Ares Commercial Real Estate Corporation disclosed a GAAP net loss of $10.7 million, or $0.20 per diluted share, for the fourth quarter of 2024, and a full-year GAAP net loss of $35.0 million, or $0.64 per diluted share. The company also reported distributable earnings losses of $8.3 million and $44.6 million for the fourth quarter and full year, respectively.
Key highlights from the report include a reduction in risk-rated loans by 34% year-over-year and the collection of $166 million in repayments, boosting liquidity to over $200 million. Despite these steps towards financial flexibility, the company decided to lower its quarterly dividend to $0.15 per share due to anticipated impacts on earnings from its adjusted balance sheet position.
The company remains focused on resolving underperforming loans and expects its improved liquidity position to facilitate quicker resolutions with more favorable outcomes. The management is optimistic about using its strengthened balance sheet to address financial challenges and enhance shareholder value moving forward.
