Key Details
Price
$6.18Last Dividend
$0.25Annual Revenue
$81.43 MAnnual EPS
-$0.72Annual ROE
-5.66%Beta
1.06Events Calendar
Next earnings date:
Feb 21, 2025Recent quarterly earnings:
Nov 07, 2024Recent annual earnings:
Feb 22, 2024Next ex-dividend date:
N/ARecent ex-dividend date:
Dec 31, 2024Next split:
N/ARecent split:
N/AAnalyst ratings
Recent major analysts updates
Market Data
Dividend
Profitability
Efficiency
Valuation
Liquidity
Cash Flow
Institutional Ownership
When risks climb, it's important to understand and evaluate them. I collect income on the cheap, from others running away from their fears. Enjoy massive yields from these three picks.
ACRE's stock has dropped by 25% since the initial bearish article. ACRE reduced its dividend from 33 cents to 25 cents in February 2024, but distributable earnings continue to come in well below this new level. Despite a slight improvement in Q3, ACRE's base earnings run-rate remains severely impaired.
Preferred shares rallied, as predicted. Finding value is getting much harder. There are some common shares trading at discounts. Some big, some tiny. I would be interested in a few of the agency mortgage REITs, but the ones I would prefer remain unavailable. The valuation between those good ones and some of the weaker ones (as measured by things like destruction of shareholder wealth and me not liking them) is still small sometimes.
Ares Commercial Real Estate failed to cover its dividend with distributable profits in 3Q24, reflecting high dividend adjustment risk and ongoing loan issues. The trust's portfolio has shrunk by 15% due to selling impaired loans, leading to a 72% YoY drop in distributable profits and negative net income. Ares Commercial Real Estate's stock trades at a 32% discount to book value, but the elevated dividend risk necessitates a rating change from 'Buy' to 'Hold.'.
Ares Commercial continues to face problems related to impaired loans in its office segment. The commercial mortgage REIT was forced to increase its CECL reserve in the third-quarter. ACRE realized losses of $0.10 per-share related to loan sales. Even when adjusting for such loan losses, the REIT did not support its dividend with distributable earnings.
U.S. equity markets soared to record highs this week after President-elect Trump scored a surprisingly decisive election victory, including a likely "trifecta" of Republican legislative control in Congress. The outcome sparked powerful moves across global financial markets as investors priced in a combination of domestic-focused and "pro-growth" economic policies but also reflected concern over deficits and immigration policy. Characteristic of the "Trump trade" dynamic, smaller-cap companies led the surge, outperforming mega-cap technology and international-heavy peers. The S&P Small-Cap 600 soared 9%, outpacing 5% gains from the S&P 500.
Ares Commercial Real Estate Corporation (ACRE) Q3 2024 Earnings Call Transcript
Ares Commercial Real Estate (ACRE) came out with quarterly earnings of $0.07 per share, missing the Zacks Consensus Estimate of $0.11 per share. This compares to earnings of $0.25 per share a year ago.
NEW YORK--(BUSINESS WIRE)--Ares Commercial Real Estate Corporation (the “Company”) (NYSE:ACRE), a specialty finance company engaged in originating and investing in commercial real estate assets, reported generally accepted accounting principles (“GAAP”) net income (loss) of $(5.9) million or $(0.11) per diluted common share and Distributable Earnings(1) of $3.7 million or $0.07 per diluted common share for the third quarter of 2024. “During the third quarter, we continued to make progress on ou.
We've got three shares where big yields are offset by one flaw or another. I recently closed out my position in one of these shares for a gain of more than 40%. Great choice about 17 months ago. Not as great today. I'll include an alternative from my portfolio that still offers an attractive yield for investors.
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