Ares Commercial Real Estate Cor (ACRE)
NYSE:ACRE
Top Page
Ares Commercial
(NYSE:ACRE)
Select Model
Select Model
Rating:52Neutral
Price Target:
$5.00
▼(-0.40% Downside)
Action:ReiteratedDate:03/31/26
The score is held back primarily by weak and inconsistent profitability despite revenue improvement, along with historical leverage/credit-risk concerns. High dividend yield and constructive liquidity/funding actions provide support, but technical momentum remains negative and earnings visibility is still dependent on resolving a concentrated set of problem loans.
Positive Factors
Improved liquidity & extended funding facilities
Long-dated, upsized repo capacity materially reduces near-term refinancing risk and provides a multi-year funding runway. This durable funding flexibility supports steady origination, lowers rollover exposure, and strengthens the company’s ability to execute portfolio growth without acute liquidity pressure.
Negative Factors
Concentrated problem-loan exposure
Material single-loan concentrations mean idiosyncratic outcomes will disproportionately swing credit losses, reserves, and earnings. Recovery timing and prices for these large assets drive near-term capital and distributable earnings, leaving dividend and solvency metrics sensitive to a few asset-level events.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved liquidity & extended funding facilities
Long-dated, upsized repo capacity materially reduces near-term refinancing risk and provides a multi-year funding runway. This durable funding flexibility supports steady origination, lowers rollover exposure, and strengthens the company’s ability to execute portfolio growth without acute liquidity pressure.
Read all positive factors
Ares Commercial (ACRE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$277.95M
Dividend Yield13.75%
Average Volume (3M)435.47K
Price to Earnings (P/E)―
Beta (1Y)0.88
Revenue Growth-30.60%
EPS Growth87.95%
CountryUS
Employees1,200
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.15
Shares Outstanding55,367,672
10 Day Avg. Volume419,398
30 Day Avg. Volume435,470
Financial Highlights & Ratios
PEG Ratio2.99
Price to Book (P/B)0.51
Price to Sales (P/S)3.07
P/FCF Ratio13.30
Enterprise Value/Market Cap4.66
Enterprise Value/Revenue23.06
Enterprise Value/Gross Profit32.20
Enterprise Value/Ebitda32.24
Forecast
1Y Price Target
$5.33Price Target Upside6.18% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)0.19
Revenue Forecast (FY)$50.02M
Ares Commercial Business Overview & Revenue Model
Company Description
Ares Commercial Real Estate Corporation, a specialty finance company, originates and invests in commercial real estate (CRE) loans and related investments in the United States. The company provides a range of financing solutions for the owners, op...
How the Company Makes Money
ACRE makes money primarily by earning interest income on its commercial real estate loan portfolio. It originates (and may acquire) CRE loans and receives contractual interest payments (typically including floating-rate interest based on a referen...
Ares Commercial Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Neutral
The call highlights meaningful progress: material reduction in office exposure, restarted originations and portfolio growth, improved liquidity and financing capacity, successful restructurings, and a declared dividend with an attractive yield. However, material credit‑concentration risk remains (five risk-rated 4/5 loans, with two loans comprising ~85% of that bucket), a significant CECL reserve concentrated in troubled assets, and mixed/uneven reported earnings. Management’s focus is on resolving the remaining problem loans which will drive earnings visibility going forward.Positive Updates
Reshaping Portfolio and Reduced Office Exposure
Office loan exposure reduced to $447 million, down 30% since year-end 2024 and down 10% quarter-over-quarter; office loans now represent 28% of the total loan portfolio (down from 38%).
Negative Updates
Remaining Risk-Rated Four and Five Loans Concentration
Five risk-rated four and five loans remain. The two largest comprise ~85% of that sub-portfolio: a risk-rated five Chicago office loan with a carrying value of $140 million (~44% of the risk-rated 4/5 pool) currently on nonaccrual, and a risk-rated four Brooklyn residential condominium loan with a carrying value of $130 million (~41% of the pool).
Read all updates
Q4-2025 Updates
Positive
Negative
Reshaping Portfolio and Reduced Office Exposure
Office loan exposure reduced to $447 million, down 30% since year-end 2024 and down 10% quarter-over-quarter; office loans now represent 28% of the total loan portfolio (down from 38%).
Read all positive updates
Company Guidance
Management guided that its near-term priorities are resolving the five remaining risk‑rated 4 and 5 loans and sustaining the Board‑declared regular 2026 cash dividend of $0.15 per common share (Q1 payable 04/15/2026; record 03/31/2026), which implies an approximate 12% annualized yield at the 02/05/2026 stock price; they reiterated confidence that execution can produce earnings to support that dividend even if earnings are lumpy. Financial targets and liquidity guidance include Q4 net debt/equity of 1.6x (ex‑CECL) with near‑term leverage likely to peak around 2.0x and a long‑term target of 3.0x, available capital of $110 million, and increased borrowing capacity of $250 million (Wells Fargo facility upsized to $600 million, Morgan Stanley facility +$100 million), plus lower funding cost via redemption of the FL4 CLO. Portfolio and reserve metrics cited: outstanding loan principal of $1.6 billion (new loans = 29% of the portfolio), 13 new commitments in 2025 totaling $486 million (8 in Q4 totaling $393 million), office loans reduced to $447 million (28% of the portfolio, ~30% decline since year‑end 2024), CECL reserve of $127 million (~8% of loans outstanding, $117 million or 92% attributed to risk‑rated 4/5 loans), book value $9.26 per share, and notable single‑loan concentrations of $140 million (Chicago risk‑rated 5, ~44% of the 4/5 bucket) and $130 million (Brooklyn risk‑rated 4, ~41% of the 4/5 bucket).Ares Commercial Financial Statement Overview
Summary
Income Statement
36
Negative
Balance Sheet
52
Neutral
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 85.35M | 87.80M | 1.10M | 109.05M | 102.07M |
| Gross Profit | 48.95M | 87.80M | 1.10M | 109.05M | 83.51M |
| EBITDA | 70.19M | 0.00 | 0.00 | 0.00 | 61.18M |
| Net Income | -902.00K | -34.99M | -38.87M | 29.79M | 60.46M |
Balance Sheet | |||||
| Total Assets | 1.62B | 1.75B | 2.28B | 2.52B | 2.63B |
| Cash, Cash Equivalents and Short-Term Investments | 29.29M | 63.80M | 138.52M | 169.21M | 50.62M |
| Total Debt | 1.05B | 1.17B | 1.62B | 1.74B | 1.90B |
| Total Liabilities | 1.11B | 1.21B | 1.65B | 1.78B | 1.95B |
| Stockholders Equity | 509.57M | 540.13M | 625.85M | 747.54M | 678.63M |
Cash Flow | |||||
| Free Cash Flow | 19.72M | 35.55M | 46.79M | 57.16M | 48.21M |
| Operating Cash Flow | 21.35M | 35.55M | 46.79M | 57.16M | 48.35M |
| Investing Cash Flow | 148.14M | 427.91M | 127.46M | 193.17M | -699.68M |
| Financing Cash Flow | -168.63M | -507.63M | -205.07M | -159.67M | 627.17M |
Ares Commercial Technical Analysis
Positive
5.02
Price Trends
4.90
Positive
4.85
Positive
4.55
Positive
Market Momentum
0.02
Negative
61.13
Neutral
94.02
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACRE, the sentiment is Positive. The current price of 5.02 is above the 20-day moving average (MA) of 4.74, above the 50-day MA of 4.90, and above the 200-day MA of 4.55, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 61.13 is Neutral, neither overbought nor oversold. The STOCH value of 94.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACRE.
Ares Commercial Risk Analysis
Ares Commercial disclosed 103 risk factors in its most recent earnings report. Ares Commercial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ares Commercial Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $214.27M | 4.71 | 17.10% | 14.83% | 65.86% | -74.61% | |
60 Neutral | $242.63M | 7.89 | 11.63% | 15.86% | -1.57% | -15.32% | |
58 Neutral | $138.06M | 7.14 | 4.99% | ― | -18.37% | 18.80% | |
57 Neutral | $252.30M | 4.98 | 8.85% | 9.61% | 20.44% | -59.21% | |
56 Neutral | $259.38M | 2.92 | 18.71% | 14.36% | 15.51% | 210.91% | |
52 Neutral | $277.95M | -16.99 | -0.17% | 13.75% | -30.60% | 87.95% |
* Real Estate Sector Average
ACRE
Ares Commercial
5.02
1.88
59.87%
ACR
ACRES Commercial Realty
19.36
2.77
16.70%
MITT
AG Mortgage
7.74
2.57
49.62%
NREF
NexPoint Real Estate ate Finance
13.79
2.60
23.25%
AOMR
Angel Oak Mortgage
8.60
2.07
31.80%
REFI
Chicago Atlantic Real Estate ate Finance Inc
11.51
-0.12
-1.04%
Ares Commercial Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Ares Commercial Expands and Extends Key Financing Facility
Positive
Mar 30, 2026
On March 24, 2026, ACRC Lender MS LLC and ACRC Lender MS II LLC, subsidiaries of Ares Commercial Real Estate Corporation, entered into an amendment to their Master Repurchase Agreement and Securities Contract with Morgan Stanley Bank, N.A. The ame...
Business Operations and StrategyPrivate Placements and Financing
Ares Commercial Extends Secured Revolving Credit Facility
Positive
Mar 16, 2026
On March 10, 2026, ACRC Lender LLC, a subsidiary of Ares Commercial Real Estate Corporation, amended its secured revolving funding facility with City National Bank. The amendment extends the facility’s maturity date to December 31, 2026 in e...
Business Operations and StrategyDividendsFinancial DisclosuresShareholder Meetings
Ares Commercial Highlights 2025 Results and Dividend Declaration
Neutral
Feb 10, 2026
For the fourth quarter of 2025, Ares Commercial Real Estate Corporation reported a GAAP net loss of $3.9 million, or $0.07 per diluted share, but generated distributable earnings of $8.5 million, or $0.15 per diluted share. For full year 2025, the...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.