Ares Commercial Real Estate Corporation Stock News

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 con...

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.

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 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 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.

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.

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.

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.