ACRE
Ares Commercial Real EstateACRE
ACRE
About: Ares Commercial Real Estate Corp is a specialty finance company and a Real Estate Investment Trust providing commercial real estate loans and related investments. It operates in one segment namely originating and managing a diversified portfolio of CRE debt-related investments. The group recognizes its revenues through the interest income it receives from loans.
Employees: 2,100
0
Funds holding %
of 6,823 funds
–
Analysts bullish %
Fund manager confidence
Based on 2024 Q3 regulatory filings by fund managers ($100M+ AUM)
99% more call options, than puts
Call options by funds: $1.02M | Put options by funds: $514K
4% more repeat investments, than reductions
Existing positions increased: 48 | Existing positions reduced: 46
2% more capital invested
Capital invested by funds: $154M [Q2] → $157M (+$3.25M) [Q3]
1.17% less ownership
Funds ownership: 42.25% [Q2] → 41.08% (-1.17%) [Q3]
7% less funds holding
Funds holding: 138 [Q2] → 128 (-10) [Q3]
29% less first-time investments, than exits
New positions opened: 15 | Existing positions closed: 21
Research analyst outlook
1 Wall Street Analyst provided 1 year price targets over the past 3 months
Low target
$6
1%
upside
Avg. target
$6
1%
upside
High target
$6
1%
upside
1 analyst rating
0 positive
0%
1 neutral
100%
0 negative
0%
Keefe, Bruyette & Woods Jade Rahmani 47% 1-year accuracy 16 / 34 met price target | 1%upside $6 | Market Perform Maintained | 14 Jan 2025 |
Financial journalist opinion
Based on 4 articles about ACRE published over the past 30 days
Negative
Seeking Alpha
5 days ago
High Yield REITs Whacked By Higher Rates
Despite a single day of declining rates, the trend higher brought even more damage to mortgage REITs. Some may see book value fall by as much as 10% or more, but the average will probably be around the middle of the single-digit range.
Negative
Seeking Alpha
1 week ago
Ares Commercial: The Worst Could Be Ahead
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.
Positive
Seeking Alpha
3 weeks ago
The More They Drop, The More I Buy
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.
Positive
Seeking Alpha
4 weeks ago
Ares Commercial: 15% Yield In Danger
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.
Neutral
GlobeNewsWire
1 month ago
KBW Announces Index Rebalancing for Fourth-Quarter 2024
NEW YORK, Dec. 13, 2024 (GLOBE NEWSWIRE) -- Keefe, Bruyette & Woods, Inc., a leading specialist investment bank to the financial services and fintech sectors, and a wholly owned subsidiary of Stifel Financial Corp. (NYSE: SF), announces the upcoming index rebalancing for the fourth quarter of 2024.
Neutral
Seeking Alpha
1 month ago
Huge Yields, Brief Notes
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.
Negative
Seeking Alpha
1 month ago
Ares Commercial Real Estate: High Yield Is A Red Flag (Downgrade)
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.'.
Neutral
Seeking Alpha
2 months ago
Ares Commercial: The 14% Yield Is Likely Not Sustainable
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.
Positive
Seeking Alpha
2 months ago
A Decisive Realignment
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.
Neutral
Seeking Alpha
2 months ago
Ares Commercial Real Estate Corporation (ACRE) Q3 2024 Earnings Call Transcript
Ares Commercial Real Estate Corporation (ACRE) Q3 2024 Earnings Call Transcript
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