Ares Commercial Real Estate Corporation cut its dividend by 40% due to persistent loan quality issues and underperforming distributable earnings, following a 24% cut in early 2024. The mortgage REIT's book value has declined significantly, now trading at a 50% discount due to ongoing loan losses and a contracting net interest margin. Despite the dividend cuts, the trust's pay-out metrics remain unstable, leading to a 'Hold' rating as concerns about the company's financial stability persist.
US equity markets flirted with fresh record-highs this week while benchmark interest rates hovered around two-month lows as investors weighed positive earnings news against uncomfortable hot inflation data. Complicating the policy outlook for the Federal Reserve, CPI data showed the fastest monthly rise in consumer prices since August, prompting a pledge from Powell for "more work to do." Snapping a two-week losing streak, the S&P 500 rebounded by 1.5%, closing fractionally below its prior record-high set in late January. The tech-heavy Nasdaq 100 rallied nearly 3%.
Ares Commercial Real Estate Corporation (NYSE:ACRE ) Q4 2024 Earnings Conference Call February 12, 2024 11:00 AM ET Company Participants John Stilmar - MD, IR Bryan Donohoe - CEO Jeff Gonzales - CFO Conference Call Participants Rick Shane - JPMorgan Doug Harter - UBS Jade Rahmani - KBW Chris Muller - Citizens JMP John Nickodemus - BTIG Operator Good afternoon, ladies and gentlemen, and welcome to Ares Commercial Real Estate Corporation's Fourth Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode.
Ares Commercial cut once again. Q4-2024 saw negative distributable EPS and increased loans rated 4 and 5. ACRE has had the worst underwriting results in mortgage REITs, and it is not even close.
Ares Commercial Real Estate (ACRE) came out with a quarterly loss of $0.15 per share versus the Zacks Consensus Estimate of $0.06. This compares to earnings of $0.20 per share a year ago.
NEW YORK--(BUSINESS WIRE)--Ares Commercial Real Estate Corporation (the “Company”) (NYSE:ACRE), a specialty finance company primarily engaged in directly originating and investing in commercial real estate assets, reported generally accepted accounting principles (“GAAP”) net income (loss) of $(10.7) million or $(0.20) per diluted common share and Distributable Earnings (Loss)(1) of $(8.3) million or $(0.15) per diluted common share for the fourth quarter of 2024. The Company reported GAAP net.
NEW YORK--(BUSINESS WIRE)--Ares Commercial Real Estate Corporation (NYSE: ACRE) announced today that it will report earnings for the fourth quarter and full year ended December 31, 2024 on Wednesday, February 12, 2025 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 11:00 a.m. Eastern Time to discuss its fourth quarter and full year ended December 31, 2024 financial results. All interested parti.
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ACRE's heavy exposure to distressed asset classes like office, multifamily, and hotels, coupled with rising delinquencies, justifies a Sell rating. Despite management's optimistic outlook, ACRE's increasing credit loss reserves and poor loan performance signal ongoing struggles in the commercial lending market. Multifamily and office markets continue to face significant challenges, with high vacancy rates and oversupply leading to falling rents and asset underperformance.