Ares Commercial Real Estate (ACRE) has disclosed a new risk, in the Debt & Financing category.
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Ares Commercial Real Estate faces heightened risk when it originates commercial real estate loans primarily to earn origination fees from rapid sales to Ares Management affiliates. If market, funding, or buyer conditions prevent timely sales, it may be forced to hold large loans longer, absorb extra interest costs and interest rate exposure, and suffer weaker-than-expected fee income and financial performance.
The average ACRE stock price target is $4.83, implying -15.41% downside potential.
To learn more about Ares Commercial Real Estate’s risk factors, click here.