The earnings call reflected both progress in strategic objectives and challenges in financial performance. While there were notable improvements in loan reductions, new investments, and balance sheet strength, the company also faced significant losses and challenges in the office sector. Distributable earnings fell short of the dividend level, but the company remains optimistic about future growth and stability.

Company Guidance

During the second quarter of 2025, Ares Commercial Real Estate Corporation made significant progress in managing its portfolio, notably reducing office loans by 10% quarter-over-quarter and 30% year-over-year to $524 million. The company successfully exited a $51 million office life sciences loan, taking a $33 million realized loss, which was in excess of the prior quarter's CECL reserve. This exit contributed to a 50% decrease in future funding commitments, from $73 million in Q1 to $36.5 million by June 30, 2025. Ares also upgraded a risk-rated 3 hotel loan to a risk-rated 2 due to improved occupancy and cash flows, while maintaining a risk rating of 4 for an $81 million Arizona office loan due to slower lease-up progress. The company's balance sheet showed strength with a net debt-to-equity ratio of 1.2x, a 6% reduction in borrowings to $889 million, and a 50% reduction in unfunded commitments. Despite reporting a GAAP net loss of $11 million or $0.20 per share and distributable earnings loss of $28 million or $0.51 per share, excluding a $33 million loss, the company remains confident in its earnings potential, supported by a robust pipeline of new loans, including $43 million in self-storage properties. The Board declared a $0.15 per share dividend for the third quarter, reflecting a yield of over 13% based on the July 31 stock price.

Reduction in Office Loans

Ares Commercial Real Estate reduced its office loans to $524 million, marking a 10% decrease quarter-over-quarter and a 30% decrease year-over-year, driven by repayments and active asset management.

Successful Loan Exits and Portfolio Stability

The company exited a $51 million office life sciences loan, taking a $33 million realized loss but contributing to a 50% decrease in future funding commitments. This move is seen as creating greater stability in the portfolio.

Strong Pipeline and New Loan Investments

Post second quarter, Ares executed its first investment commitments of the year, closing four senior loans totaling $43 million in loan commitments collateralized by self-storage properties. The team has originated over $6 billion of new investment commitments in the past 12 months.

Balance Sheet and Liquidity Improvements

The net debt-to-equity ratio was maintained at 1.2x, down from 1.9x year-over-year. Outstanding borrowings decreased by 6% quarter-over-quarter and 39% year-over-year. Liquidity position was $178 million as of June 30, 2025.

Ares Commercial (ACRE) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

ACRE Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Oct 29, 2025	2025 (Q3)	<0.01 / -	0.07	―	―	―
Aug 05, 2025	2025 (Q2)	0.00 / -0.51	-0.12	-325.00% (-0.39)
May 07, 2025	2025 (Q1)	>-0.01 / 0.13	-0.62	120.97% (+0.75)
Feb 12, 2025	2024 (Q4)	0.06 / -0.15	0.2	-175.00% (-0.35)
Nov 07, 2024	2024 (Q3)	0.10 / 0.07	0.25	-72.00% (-0.18)
Aug 06, 2024	2024 (Q2)	-0.09 / -0.12	0.35	-134.29% (-0.47)
May 09, 2024	2024 (Q1)	0.22 / -0.62	0.27	-329.63% (-0.89)
Feb 22, 2024	2023 (Q4)	-0.43 / 0.20	0.44	-54.55% (-0.24)
Nov 03, 2023	2023 (Q3)	0.23 / 0.25	0.39	-35.90% (-0.14)
Aug 02, 2023	2023 (Q2)	0.33 / 0.35	0.38	-7.89% (-0.03)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

ACRE Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Aug 05, 2025	$4.52	$4.16	-7.96%
May 07, 2025	$3.99	$4.54	+13.78%
Feb 12, 2025	$5.72	$5.02	-12.24%
Nov 07, 2024	$5.84	$6.43	+10.10%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

FAQ

When does Ares Commercial Real Estate Cor (ACRE) report earnings?

Ares Commercial Real Estate Cor (ACRE) is schdueled to report earning on Oct 29, 2025, Before Open (Confirmed).

What is Ares Commercial Real Estate Cor (ACRE) earnings time?

Ares Commercial Real Estate Cor (ACRE) earnings time is at Oct 29, 2025, Before Open (Confirmed).

Where can I see when companies are reporting earnings?

You can see which companies are reporting today on our designated earnings calendar.

What companies are reporting earnings today?

You can see a list of the companies which are reporting today on TipRanks earnings calendar.

What is ACRE EPS forecast?

ACRE EPS forecast for the fiscal quarter 2025 (Q3) is <0.01.

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