Ares Commercial Real Estate (NYSE:ACRE) Announces Earnings Results

Posted by Brenda Bartman on Nov 7th, 2026

Ares Commercial Real Estate (NYSE:ACRE – Get Free Report) released its quarterly earnings data on Friday. The real estate investment trust reported $0.12 EPS for the quarter, topping the consensus estimate of $0.04 by $0.08, FiscalAI reports. Ares Commercial Real Estate had a return on equity of 4.36% and a net margin of 1.76%. The business had revenue of $13.51 million for the quarter, compared to analyst estimates of $12.87 million.

Here are the key takeaways from Ares Commercial Real Estate’s conference call:

Third-quarter Distributable Earnings were $0.12 per share ($0.11 excluding a realized gain), below the $0.15 quarterly dividend. Management said resolving non-accrual investments is a key potential driver of earnings growth, but gave no timeline for dividend coverage.
ACRE sold its Charlotte office REO for about $7 million above carrying value and was repaid on its only defaulted loan, including accrued default interest. It is pursuing title to the Chicago office property for greater control over resolution, while Brooklyn condo losses will be recognized as individual units sell.
The $141 million CECL reserve was little changed, but 94% relates to risk-rated four and five loans, with nearly half tied to the Chicago office loan. These loans represent 10% of portfolio carrying value net of CECL.
Management cited $116 million of available capital, moderate net debt-to-equity of 1.9x, and a portfolio largely matched with floating-rate financing. Risk-rated one-to-three loans account for 90% of loan carrying value net of CECL, and 94% of those loans have interest-rate caps.

Ares Commercial Real Estate Stock Performance

Ares Commercial Real Estate stock traded up $0.04 during midday trading on Monday, reaching $3.69. 442,488 shares of the company were exchanged, compared to its average volume of 494,899. The firm’s 50-day simple moving average is $3.89 and its 200-day simple moving average is $4.63. Ares Commercial Real Estate has a 1 year low of $3.16 and a 1 year high of $5.89. The company has a market capitalization of $204.45 million, a price-to-earnings ratio of 184.34 and a beta of 1.22.

Ares Commercial Real Estate Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, January 15th. Shareholders of record on Thursday, December 31st will be given a dividend of $0.15 per share. The ex-dividend date of this dividend is Thursday, December 31st. This represents a $0.60 annualized dividend and a yield of 16.3%. Ares Commercial Real Estate’s dividend payout ratio (DPR) is presently 3,000.00%.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on ACRE. Keefe, Bruyette & Woods reaffirmed an “outperform” rating on shares of Ares Commercial Real Estate in a research note on Monday. Weiss Ratings lowered Ares Commercial Real Estate from a “sell (d+)” rating to a “sell (d)” rating in a report on Wednesday, October 14th. Wells Fargo & Company dropped their target price on Ares Commercial Real Estate from $5.00 to $3.50 and set an “underweight” rating on the stock in a report on Monday. Truist Financial set a $4.25 target price on Ares Commercial Real Estate in a research note on Monday. Finally, Wall Street Zen upgraded shares of Ares Commercial Real Estate from a “sell” rating to a “hold” rating in a research report on Saturday, August 15th. One research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Reduce” and a consensus target price of $4.55.

Read Our Latest Analysis on ACRE

Ares Commercial Real Estate Company Profile

(Get Free Report)

Ares Commercial Real Estate Corporation is a specialty finance company organized as a real estate investment trust (REIT). The company originates and invests in commercial real estate loans, with a primary focus on senior mortgage loans secured by properties in the United States.

Its investment portfolio may include loans backed by multifamily, office, industrial, retail, hotel and other commercial properties. Ares Commercial Real Estate generally targets transitional and other commercial real estate assets that require financing for acquisition, redevelopment, renovation or repositioning.