Ares Commercial Real Estate Q1 net loss widens

Ares Commercial Real Estate

07/05/2026 11:09

Overview

US commercial real estate lender's Q1 net income missed analyst expectations, posting a loss

Q1 pretax profit also missed analyst expectations

Company closed $294 mln in new loan commitments during the quarter

Outlook

Company declared Q2 2026 dividend of $0.15 per share, payable July 15, 2026

Company says it remains focused on resolving risk-rated loans and selectively investing in new loans

Company expanded borrowing capacity by $300 mln to support future growth

Result Drivers

CREDIT LOSS PROVISION - Higher provision for current expected credit losses weighed on results

REALIZED LOAN LOSSES - Realized losses on loans contributed to net loss

PORTFOLIO GROWTH - $294 mln in new loan commitments closed during the quarter, per CEO Bryan Donohoe

Company press release: ID:nBw61JBjba

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue from Real Estate Owned
$5.92 mln
Q1 EPS
-$0.17
Q1 Net Income
Miss
-$9.61 mln
$1.54 mln (6 Analysts)
Q1 Pretax Profit
Miss
-$9.58 mln
-$1.70 mln (3 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"

Wall Street's median 12-month price target for Ares Commercial Real Estate Corp is $5.00, about 4.2% below its May 6 closing price of $5.22

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 24 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)