Ares Commercial Real Estate Corporation (41I)
XFRA 
Summary
41I Chart
Ares Commercial Real Estate (ACRE) Upgraded to Buy: What Does It Mean for the Stock?
Ares Commercial Real Estate (ACRE) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
Ares Commercial: No Light At The End Of This Tunnel
Ares Commercial Real Estate Corporation is a small, distressed CRE REIT with significant exposure to troubled office loans. ACRE trades at just 51% of book value, reflecting market skepticism about the accuracy of its reported asset values and loan reserves. The fund is shrinking, not originating new loans, and likely understating needed loan loss reserves, with further dividend cuts expected.
Ares Commercial Real Estate Corporation: Discount Without A Bargain
Ares Commercial Real Estate Corporation faces ongoing challenges with distressed loans and a shrinking portfolio, despite a high 11.9% dividend yield. ACRE trades at a 50% discount to tangible book value, but risks from maturing bank debt and low loan yields outweigh potential upside. The company's focus on portfolio stabilization and safer financing is critical, as further dividend cuts are likely if revenue continues to decline.
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Ares Commercial Real Estate Corporation Profile
| Mortgage Real Estate Investment Trusts (REITs) Industry | Financials Sector | Bryan Patrick Donohoe CEO | XFRA Exchange | US04013V1089 ISIN |
| US Country | 1,200 Employees | 31 Dec 2025 Last Dividend | - Last Split | - IPO Date |
Overview
Ares Commercial Real Estate Corporation is a specialized finance entity that has carved a niche for itself in the realm of commercial real estate loans and investments across the United States. Founded in 2011 and headquarted in New York, New York, the company operates with a focus on providing a broad spectrum of financing solutions tailored to meet the needs of owners, operators, and sponsors of commercial real estate (CRE) properties. By electing and qualifying to be taxed as a real estate investment trust (REIT) under the Internal Revenue Code of 1986, it utilizes a strategic tax position to benefit its investment operations and stakeholders.
Products and Services
- Senior Mortgage Loans: A primary product offering, these are first lien loans that provide borrowers with the capital needed for acquiring, refinancing, or repositioning CRE assets. This financing solution ranks highest in terms of repayment priority in the event of a borrower's default.
- Subordinate Debt and Preferred Equity Products: Crafted to fill the gap between senior debt and equity, these financial instruments offer a higher yield in exchange for taking on more risk compared to senior loans. They provide crucial leverage opportunities for property owners seeking to maximize their investment capital.
- Mezzanine Loans: Acting as a bridge between senior debt and equity, mezzanine financing offers a hybrid of debt and equity financing, secured by a pledge of the underlying equity rather than the real estate asset itself. This facilitates higher leverage for the borrower, albeit at a higher risk to the lender.
- Other CRE Investments: Besides the primary loan products, Ares Commercial Real Estate Corporation diversifies its portfolio through investments in other CRE-related assets, including commercial mortgage-backed securities (CMBS). These securities provide a way for the company to invest in a pool of loans, therefore spreading the risk across different assets.
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