ACRE (Ares Commercial Real Estate Corporation) Reports Earnings Below Its Dividend
View the ACRE Dividend Stock Profile
Ares Commercial Real Estate Corporation reported third-quarter distributable earnings of $0.12 per diluted common share on November 6, 2026, and declared a $0.15 fourth-quarter dividend. The latest quarter came up three cents short of that payment. Without a small realized gain, distributable earnings were $0.11 per share.
Ares earns interest on commercial property loans and pays borrowing costs to fund those investments. Repaying a $90 million secured term loan after quarter-end removed a maturing obligation, while a $200 million loan backed by a Brooklyn residential and condominium project moved from risk grade 4 to 5. That downgrade matters because troubled loans can tie up money that could otherwise earn interest elsewhere, and a workout can leave less principal to reinvest.
We see the term loan repayment as progress on funding, but the dividend still needs more earning power. The next report will help show whether recoveries and income from new loans are closing the gap between distributable earnings and the payment.
Sources
- Ares Commercial Real Estate third-quarter results
- Third-quarter earnings presentation filed with the SEC
This article is general information, not personalized investment advice. Fly High Investing may hold securities discussed in this article.