- ACRE
This article first appeared on GuruFocus.
GAAP Net Income: ~$10 million, or $0.18 per diluted common share, for Q3 2026.
Distributable Earnings: ~$6.7 million, or $0.12 per diluted common share; includes $300,000 ($0.01/share) net realized gain from North Carolina office REO sale.
Distributable Earnings (ex-gain): ~$6.4 million, or $0.11 per diluted common share.
Non-Accrual Cash Interest Collected: $1.7 million, or $0.03 per diluted common share, recorded as reduction in loan basis.
Net Debt-to-Equity Ratio: 1.9 times, excluding CECL.
Loan Repayments: $35 million collected in Q3 2026; $146 million year-to-date.
New Loan Origination: $35 million senior co-investment commitment on industrial portfolio ($28 million held for investment; $7 million held for sale and sold).
Available Capital: $116 million as of September 30, 2026.
CECL Reserve: $141 million (~8% of total outstanding loan principal), up ~$2 million from June 30, 2026; $133 million (94%) tied to risk-rated 4 and 5 loans (~34% of their outstanding principal).
Book Value: $8.86 per share, relatively stable.
Dividend: Regular quarterly cash dividend of $0.15 per common share declared for Q4 2026; annualized yield ~18% based on November 3, 2026 stock price.
Office Loan & REO Investments: $444 million at quarter end, down 10% quarter over quarter and 19% year over year.
Portfolio Growth: Total portfolio increased over 40% over the past 12 months.
Risk-Rated 13 Loans: 90% of loan portfolio carrying value net of CECL; 100% floating rate, 94% with interest rate caps (average one-month SOFR strike of 4.3%).
Risk-Rated 4 and 5 Loans: Four loans representing 10% of carrying value net of CECL; remaining two non-Chicago/Brooklyn loans total $20 million carrying value ($6 million net of CECL).
REO Sale: Charlotte, North Carolina office asset sold with net proceeds ~$7 million above carrying value ($7.1 million GAAP gain).
Release Date: November 06, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Ares Commercial <a href="https://industrymovement.com/dj-vagrant-real-estate-wins-scottish-album-of-year-2026/" title="DJ Vagrant Real Estate wins Scottish Album of Year 2026″>Real Estate Corp (NYSE:ACRE) sold its Charlotte office REO property for net proceeds approximately $7 million above carrying value, demonstrating successful active management.
Ares Commercial Real Estate Corp (NYSE:ACRE) fully repaid its only loan in default (Newark industrial loan) post-quarter, including all accrued default interest.
Ares Commercial Real Estate Corp (NYSE:ACRE) reduced office exposure by 10% quarter-over-quarter and 19% year-over-year, with five of seven remaining office loans risk-rated 1-3 and performing well.
Ares Commercial Real Estate Corp (NYSE:ACRE) maintains strong liquidity with $116 million available capital and a moderate net debt-to-equity ratio of 1.9x, supporting resolutions and growth.
Ares Commercial Real Estate Corp (NYSE:ACRE) has a well-matched asset-liability profile with 100% floating-rate assets financed by floating-rate borrowings, and 94% of risk-rated 1-3 loans have interest rate caps.
