Ares Commercial Real Estate Q2 net income misses expectations

Ares Commercial Real Estate

05/08/2025 11:12

Overview

Ares Commercial Real Estate Q2 net loss of $11.0 mln misses expectations

Distributable loss of $27.9 mln, or $0.51 per share, in Q2

Company closed $43 mln of new loan commitments in Q3 2025

Outlook

Ares Commercial Real Estate sees active real estate market for investing

Company closed $43 mln of senior loan commitments in Q3

Ares Commercial Real Estate has $178 mln available capital for investments

Result Drivers

PORTFOLIO STRENGTHENING - Co focused on resolving risk-rated loans and reducing office loans, per CEO Bryan Donohoe

LIQUIDITY IMPROVEMENT - CFO Jeff Gonzales highlights $337 mln repayments collected, enhancing liquidity

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue from Real Estate Owned
$5.55 mln
Q2 EPS
-$0.2
Q2 Net Income
Miss
-$11.04 mln
$733,300 (3 Analysts)
Q2 Pretax Profit
Miss
-$11.04 mln
-$4.12 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 $5.00, about 9.6% above its August 4 closing price of $4.52

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 48 three months ago

Press Release: ID:nBw6YL2zka

(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.)