Ares Commercial beats Q3 profit expectations, declares dividend

Ares Commercial Real Estate

07/11/2025 11:07

Overview

Ares Commercial Q3 net income of $4.7 mln beats analyst expectations

Company declared Q4 dividend of $0.15 per share

Closed $271 mln of new loan commitments after Q3

Outlook

Company anticipates additional repayments will enhance liquidity and support increased investment activity

Ares Commercial Real Estate aims to accelerate investing activity with new loan commitments

Result Drivers

LOAN REPAYMENTS - CFO Jeff Gonzales states $500 mln of repayments year-to-date have bolstered liquidity

INVESTMENT ACTIVITY - CEO Bryan Donohoe highlights $360 mln of new loan commitments as part of portfolio repositioning

RISK MANAGEMENT - CEO Bryan Donohoe mentions addressing risk rated 4 and 5 loans and reducing office loans to strengthen financial flexibility

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue from Real Estate Owned
$5.63 mln
Q3 EPS
$0.08
Q3 Net Income
Beat
$4.65 mln
$1.90 mln (5 Analysts)
Q3 Pretax Profit
Beat
$4.65 mln
-$1.35 mln (3 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the specialized reits peer group is "buy."

Wall Street's median 12-month price target for Ares Commercial Real Estate Corp is $4.50, about 0.2% below its November 6 closing price of $4.49

The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nBw9RqRhXa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)