The High Yield Desert
I frequently discuss high-yield sectors like mortgage REITs, BDCs, and preferred shares, emphasizing the importance of knowing when not to buy. Preferred shares have rallied above targets, reducing buying opportunities, while common shares offer higher risks. Some offer upside, but others mostly offer downside. I'll kick off the weekend by highlighting one with a high valuation, as investors pay top dollar for earnings that are about to melt away.
Ares Commercial Real Estate: 14% Undercovered Yield, But There Is Hope
Ares Commercial Real Estate reported negative distributable earnings for the second consecutive quarter due to loan sales below book value, impacting profitability and book value. Despite ongoing loan issues, Ares declared a $0.25 per share dividend for 3Q24, reflecting management's confidence in a potential earnings rebound. The stock trades at a 34% discount to book value, suggesting that concerns about dividend cuts are already priced in.
Want $13,500? Check Out These High Dividend REIT Stocks
24/7 Wall Street Insights Real estate is a tried and true asset class for passive income wealth building, but the high entry price can eliminate those with limited liquid investment capital.
10% Or Higher Dividend Yields
BDCs, mortgage REITs, preferred shares, and one baby bond. Most are yielding over 10%. I hope you're ready for the weekend. We're going to do quick coverage on each share. Some of these preferred share and baby bond combinations appear to be slightly mispriced.
Ares Commercial: High Risk Of A Second Dividend Reset
Ares Commercial Real Estate faces challenges in its loan portfolio, leading to realized losses from loan sales. The REIT's CECL reserve increased due to continual loan issues, particularly in the troubled office sector. Weak distributable earnings performance going forward may result in a second dividend cut.
Ares Commercial: Another Big Loan Goes On Non-Accrual
Ares Commercial Real Estate Corporation cut its distribution within two weeks of our initial coverage, resulting in negative total returns. Q2-2024 results showed significant losses, with non-accrual loans and a decreasing net interest margin contributing to financial struggles. We tell you what the sustainable distribution level is for the firm, assuming everything goes right.
Ares Commercial Real Estate (ACRE) Reports Q2 Earnings: What Key Metrics Have to Say
While the top- and bottom-line numbers for Ares Commercial Real Estate (ACRE) give a sense of how the business performed in the quarter ended June 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Ares Commercial Real Estate (ACRE) Reports Q2 Loss, Misses Revenue Estimates
Ares Commercial Real Estate (ACRE) came out with a quarterly loss of $0.12 per share versus the Zacks Consensus Estimate of $0.19. This compares to earnings of $0.35 per share a year ago.
Bashing Big Yielders
Dividends need to be sustained to create value. We're highlighting a company that regularly falls short. I made some mistakes many years ago and I want to address them so we can all learn from them.
2 Big Dividend Yielders And My Rant About Accounting
Accounting is driving a failure of efficient markets. The persistency of this market failure is absurd. Investors love LIBOR swaps and don't care for other tools that serve the same purpose. DX and AGNC are much more similar than investors think. This is primarily due to being clueless about accounting.
Ares Commercial Real Estate Corporation Schedules Earnings Release and Conference Call for the Second Quarter Ended June 30, 2024
NEW YORK, NY / ACCESSWIRE / July 25, 2024 / Ares Commercial Real Estate Corporation (NYSE:ACRE) announced today that it will report earnings for the second quarter ended June 30, 2024 on August 6, 2024 prior to the opening of the New York Stock Exchange. Ares Commercial Real Estate Corporation will hold its webcast/conference call on the same day at 12:00 p.m.
Mortgage REITs Surging
After a terrible start to the year, mortgage REITs are hot in July. Don't tell ORC. They missed most of the rally. If only it was an opportunity to destroy book value. They're so good at that. Quick commentary on MAIN.
