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    Ares Commercial Real Estate (ACRE)

    Market Price (8/3/2026): $4.275 | Market Cap: $236.5 MilSector: Financials | Industry: Mortgage REITs

    Ares Commercial Real Estate (ACRE)

    Market Price (8/3/2026): $4.275
    Market Cap: $236.5 Mil
    Sector: Financials
    Industry: Mortgage REITs

    Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.

    0

    Attractive yield
    Total YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 5.8%, Dividend Yield is 14%

    Low stock price volatility
    Vol 12M is 38%

    Megatrend and thematic drivers
    Megatrends include Digital & Alternative Assets, and E-commerce Logistics & Data Centers. Themes include Private Credit, E-commerce Logistics, Show more.

    Weak multi-year price returns
    2Y Excs Rtn is -65%, 3Y Excs Rtn is -104%

    Debt is significant
    Net D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 503%

    Expensive valuation multiples
    P/SPrice/Sales ratio is 13x

    Weak revenue growth
    Rev Chg LTMRevenue Change % Last Twelve Months (LTM) is -30%, Rev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -41%, Rev Chg QQuarterly Revenue Change % is -32%

    Significant share based compensation
    SBC/Rev LTMShare Based Compensation / Revenue (Sales), Last Twelve Months (LTM) is 21%

    Not cash flow generative
    CFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is -239%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -251%

    Key risks
    ACRE key risks include [1] a heavy portfolio concentration in the distressed office sector, Show more.

    0 Attractive yield
    Total YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 5.8%, Dividend Yield is 14%
    1 Low stock price volatility
    Vol 12M is 38%
    2 Megatrend and thematic drivers
    Megatrends include Digital & Alternative Assets, and E-commerce Logistics & Data Centers. Themes include Private Credit, E-commerce Logistics, Show more.
    3 Weak multi-year price returns
    2Y Excs Rtn is -65%, 3Y Excs Rtn is -104%
    4 Debt is significant
    Net D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 503%
    5 Expensive valuation multiples
    P/SPrice/Sales ratio is 13x
    6 Weak revenue growth
    Rev Chg LTMRevenue Change % Last Twelve Months (LTM) is -30%, Rev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -41%, Rev Chg QQuarterly Revenue Change % is -32%
    7 Significant share based compensation
    SBC/Rev LTMShare Based Compensation / Revenue (Sales), Last Twelve Months (LTM) is 21%
    8 Not cash flow generative
    CFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is -239%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -251%
    9 Key risks
    ACRE key risks include [1] a heavy portfolio concentration in the distressed office sector, Show more.

    ACRE in ETFs

    Weight = ACRE's share of each fund

    ITOT0.00%
    IWM0.01%
    IWN0.02%
    VTWO0.01%
    IWV0.00%

    Valuation & Metrics

    FYE: 12/31ACRE [1]S&P 500 [2]
    REVENUE GROWTH
    LTM Revenue [3]$18.1 Mil—
    FY 2026 Sales$48.8 Mil—
    FY 2027 Sales$53.3 Mil—
    FY 2026 Sales Growth169.1%—
    FY 2027 Sales Growth9.2%12.9%
    EARNINGS
    LTM Net Income (GAAP) [3]$-19.9 Mil—
    FY 2026 Net Income (Non-GAAP)$7.7 Mil—
    FY 2027 Net Income (Non-GAAP)$19.6 Mil—
    FY 2027 Net Income Growth154.6%19.5%
    FY 2026 EPS (Non-GAAP)$0.14—
    FY 2027 EPS (Non-GAAP)$0.36—
    FY 2027 EPS Growth156.8%—
    VALUATION
    FY 2026 P/S4.91.8
    FY 2027 P/S4.4—
    FY 2026 P/E30.78.3
    FY 2027 P/E12.0—

    [1] ACRE forward figures are analyst consensus for the next two fiscal years (fiscal year end 12/31). Net Income and EPS are non-GAAP (adjusted) consensus. P/S and P/E divide the current market cap by the consensus figure.
    [2] S&P 500 figures are the SPY ETF's holdings-weighted forward aggregate. P/S and P/E reflect FY1/FY2 consensus blended to the 12-month window ending 8/31/27 (~one year forward), shown when ≥90% of index weight has estimates. Growth is the aggregate next-fiscal-year vs current-fiscal-year (FY1→FY2) change. Index-level dollar Sales, Net Income and EPS are not applicable.
    [3] LTM = reported trailing-twelve-month actuals (GAAP).
    ACRES&P 500
    REVENUE GROWTHVERY POOR
    Rev LTM ($ Bil)0.0
    Rev Chg Q-32.3%8.8%
    Rev Chg LTM-29.6%7.8%
    Rev Chg 3Y Avg-40.6%5.7%
    PROFITABILITYVERY POOR
    Op Inc LTM ($ Bil)�
    CFO LTM ($ Bil)-0.0
    Net Inc LTM ($ Bil)-0.0
    CFO/Rev LTM-238.8%21.6%
    Net Inc Mgn-109.6%12.9%
    VALUATIONVERY HIGH
    P/S13.13.4
    P/CFO-5.515.7
    P/FCF-5.220.0
    P/E-11.923.9

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    MetricValueDateSource
    Total Originated Commitments1.5 billion6302025Link
    Number of Loans266302025Link
    Portfolio Principal Balance2.2 billion12312023Link
    Percentage of Senior Loans98%12312023Link

    Price Chart

    No Events

    Why The Stock Moved

    Qualitative Assessment

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    Updated on 8/1/2026

    Ares Commercial Real Estate (ACRE) stock has lost about 15% since 4/30/2026 because of the following key factors:

    1. Ares Commercial Real Estate (ACRE) reported weaker than anticipated financial results for fiscal Q1 2026, which ended on March 31, 2026. The company announced earnings per share (EPS) of $0.06, falling short of analysts' consensus estimates of $0.08. Additionally, ACRE's net income for fiscal Q1 2026 was negative $9.6 million, a significant decline from a profit of $9.3 million in the comparable period of the prior year. This earnings miss led to a 3.3% decline in the stock price the day following the announcement on May 7, 2026.

    2. Persistent concerns regarding ACRE's financial health and the sustainability of its dividend have weighed on investor confidence. The company has a "poor" financial strength rating of 2 out of 10, primarily attributed to high debt levels. Despite maintaining a quarterly dividend of $0.15 per share, representing an annualized yield of approximately 12.9%, analysts have raised questions about its long-term sustainability given the company's financial metrics and profitability challenges.

    Show more
    Updated on 8/1/2026

    Ares Commercial Real Estate (ACRE) stock has lost about 15% since 4/30/2026 because of the following key factors:

    1. Ares Commercial Real Estate (ACRE) reported weaker than anticipated financial results for fiscal Q1 2026, which ended on March 31, 2026. The company announced earnings per share (EPS) of $0.06, falling short of analysts' consensus estimates of $0.08. Additionally, ACRE's net income for fiscal Q1 2026 was negative $9.6 million, a significant decline from a profit of $9.3 million in the comparable period of the prior year. This earnings miss led to a 3.3% decline in the stock price the day following the announcement on May 7, 2026.

    2. Persistent concerns regarding ACRE's financial health and the sustainability of its dividend have weighed on investor confidence. The company has a "poor" financial strength rating of 2 out of 10, primarily attributed to high debt levels. Despite maintaining a quarterly dividend of $0.15 per share, representing an annualized yield of approximately 12.9%, analysts have raised questions about its long-term sustainability given the company's financial metrics and profitability challenges.

    3. The broader commercial real estate (CRE) market continued to face headwinds during fiscal Q2 2026, impacting real estate investment trusts like ACRE. The market experienced a "universal collapse in new construction pipelines" and a notable "bifurcation between high-quality and commodity space in the office sector," with older, less competitive office properties facing persistent vacancy and pricing pressure. Moreover, the CRE market is grappling with a substantial "refinancing wall" in 2026, including $875 billion in commercial and multifamily maturities, with office commercial mortgage-backed securities (CMBS) delinquency rates reaching a record 12.34% in January 2026 before slightly decreasing to 11.53% in May 2026.

    4. The "higher for longer" interest rate environment has created challenges for the commercial real estate sector. Expectations for Federal Reserve policy shifted during fiscal Q2 2026, moving from anticipated rate cuts at the end of 2025 to the possibility of "one or two hikes" following the June Federal Open Market Committee (FOMC) meeting. As of mid-2026, the federal funds rate ranged between 3.50% and 3.75%, with projections for the end of 2026 around 3.8%. These elevated borrowing costs are limiting large-scale institutional activity in the real estate market, affecting property valuations and financing availability.

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    Stock Movement Drivers

    Fundamental Drivers

    The -15.8% change in ACRE stock from 4/30/2026 to 8/2/2026 was primarily driven by a -21.0% change in the company's Total Revenues ($ Mil).
    (LTM values as of)43020268022026Change
    Stock Price ($)5.064.26-15.8%
    Change Contribution By: 
    Total Revenues ($ Mil)2318-21.0%
    P/S Multiple12.113.07.4%
    Shares Outstanding (Mil)5555-0.7%
    Cumulative Contribution-15.8%

    LTM = Last Twelve Months as of date shown

    Market Drivers

    4/30/2026 to 8/2/2026
    ReturnCorrelation
    ACRE-15.8% 
    Market (SPY)3.9%21.3%
    Sector (XLF)9.2%41.3%

    Fundamental Drivers

    The -12.7% change in ACRE stock from 1/31/2026 to 8/2/2026 was primarily driven by a -68.5% change in the company's P/S Multiple.
    (LTM values as of)13120268022026Change
    Stock Price ($)4.884.26-12.7%
    Change Contribution By: 
    Total Revenues ($ Mil)618179.4%
    P/S Multiple41.313.0-68.5%
    Shares Outstanding (Mil)5555-0.8%
    Cumulative Contribution-12.7%

    LTM = Last Twelve Months as of date shown

    Market Drivers

    1/31/2026 to 8/2/2026
    ReturnCorrelation
    ACRE-12.7% 
    Market (SPY)8.3%33.5%
    Sector (XLF)7.1%43.0%

    Fundamental Drivers

    The 8.3% change in ACRE stock from 7/31/2025 to 8/2/2026 was primarily driven by a 55.3% change in the company's P/S Multiple.
    (LTM values as of)73120258022026Change
    Stock Price ($)3.934.268.3%
    Change Contribution By: 
    Total Revenues ($ Mil)2618-29.6%
    P/S Multiple8.413.055.3%
    Shares Outstanding (Mil)5555-0.9%
    Cumulative Contribution8.3%

    LTM = Last Twelve Months as of date shown

    Market Drivers

    7/31/2025 to 8/2/2026
    ReturnCorrelation
    ACRE8.3% 
    Market (SPY)19.2%27.4%
    Sector (XLF)10.0%35.6%

    Fundamental Drivers

    The -40.1% change in ACRE stock from 7/31/2023 to 8/2/2026 was primarily driven by a -82.5% change in the company's Total Revenues ($ Mil).
    (LTM values as of)73120238022026Change
    Stock Price ($)7.114.26-40.1%
    Change Contribution By: 
    Total Revenues ($ Mil)10418-82.5%
    P/S Multiple3.713.0247.6%
    Shares Outstanding (Mil)5555-1.3%
    Cumulative Contribution-40.1%

    LTM = Last Twelve Months as of date shown

    Market Drivers

    7/31/2023 to 8/2/2026
    ReturnCorrelation
    ACRE-40.1% 
    Market (SPY)68.9%39.8%
    Sector (XLF)68.4%43.1%

    Return vs. Risk

    Price Returns Compared

     202120222023202420252026Total [1]
    Returns
    ACRE Return34%-20%16%-34%-8%-4%-28%
    Peers Return29%-17%20%-7%9%-7%22%
    S&P 500 Return27%-19%24%23%16%9%98%

    Monthly Win Rates [3]
    ACRE Win Rate67%42%50%42%33%29% 
    Peers Win Rate62%48%53%53%55%37% 
    S&P 500 Win Rate75%42%67%75%67%43% 

    Max Drawdowns [4]
    ACRE Max Drawdown-15%-34%-36%-37%-41%-20% 
    Peers Max Drawdown-14%-30%-29%-19%-18%-17% 
    S&P 500 Max Drawdown-5%-25%-10%-8%-19%-9% 

    [1] Cumulative total returns since the beginning of 2021
    [2] Peers: STWD, BXMT, ARI, KREF, LADR. See ACRE Returns vs. Peers.
    [3] Win Rate = % of calendar months in which monthly returns were positive
    [4] Max drawdown represents maximum peak-to-trough decline within a year
    [5] 2026 data is for the year up to 7/31/2026 (YTD)

    How Low Can It Go

    EventACRES&P 500
    2025 US Tariff Shock
      % Loss-29.1%-18.8%
      % Gain to Breakeven41.1%23.1%
      Time to Breakeven26 days79 days
    Summer-Fall 2023 Five Percent Yield Shock
      % Loss-12.5%-9.5%
      % Gain to Breakeven14.3%10.5%
      Time to Breakeven42 days24 days
    2023 SVB Regional Banking Crisis
      % Loss-32.6%-6.7%
      % Gain to Breakeven48.4%7.1%
      Time to Breakeven224 days31 days
    2020 COVID-19 Crash
      % Loss-74.7%-33.7%
      % Gain to Breakeven295.3%50.9%
      Time to Breakeven362 days140 days
    2015-2016 China Devaluation / Global Growth Scare
      % Loss-28.1%-12.2%
      % Gain to Breakeven39.1%13.9%
      Time to Breakeven119 days62 days
    2014-2016 Oil Price Collapse
      % Loss-18.6%-6.8%
      % Gain to Breakeven22.8%7.3%
      Time to Breakeven40 days15 days

    Compare to STWD, BXMT, ARI, KREF, LADR

    In The Past

    Ares Commercial Real Estate's stock fell -29.1% during the 2025 US Tariff Shock. Such a loss loss requires a 41.1% gain to breakeven.

    Preserve Wealth

    Limiting losses and compounding gains is essential to preserving wealth.

    Asset Allocation

    Actively managed asset allocation strategies protect wealth. Learn more.

    EventACRES&P 500
    2025 US Tariff Shock
      % Loss-29.1%-18.8%
      % Gain to Breakeven41.1%23.1%
      Time to Breakeven26 days79 days
    2023 SVB Regional Banking Crisis
      % Loss-32.6%-6.7%
      % Gain to Breakeven48.4%7.1%
      Time to Breakeven224 days31 days
    2020 COVID-19 Crash
      % Loss-74.7%-33.7%
      % Gain to Breakeven295.3%50.9%
      Time to Breakeven362 days140 days
    2015-2016 China Devaluation / Global Growth Scare
      % Loss-28.1%-12.2%
      % Gain to Breakeven39.1%13.9%
      Time to Breakeven119 days62 days
    2013 Taper Tantrum
      % Loss-24.2%-0.2%
      % Gain to Breakeven31.9%0.2%
      Time to Breakeven1049 days1 days

    Compare to STWD, BXMT, ARI, KREF, LADR

    In The Past

    Ares Commercial Real Estate's stock fell -29.1% during the 2025 US Tariff Shock. Such a loss loss requires a 41.1% gain to breakeven.

    Preserve Wealth

    Limiting losses and compounding gains is essential to preserving wealth.

    Asset Allocation

    Actively managed asset allocation strategies protect wealth. Learn more.

    About Ares Commercial Real Estate (ACRE)

    Ares Commercial Real Estate Corporation (ACRE) is a specialty finance company operating as a Real Estate Investment Trust (REIT) focused on the U.S. commercial real estate (CRE) market. The company's core business involves originating and investing in a variety of loans and related financial instruments designed for owners, operators, and sponsors of commercial properties across the United States. As a REIT, ACRE is structured to invest in income-producing real estate and real estate-related assets, distributing a significant portion of its taxable income to shareholders.

    ACRE provides a comprehensive suite of financing solutions, including senior mortgage loans which typically hold a primary lien position, as well as subordinate debt products like mezzanine loans that sit lower in the capital structure. Additionally, the company offers real estate preferred equity investments and invests in other CRE-related securities, such as commercial mortgage-backed securities (CMBS), diversifying its portfolio. These products and services cater directly to entities seeking capital for the acquisition, development, or refinancing of commercial properties within the U.S.

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    Here are 1-3 brief analogies for Ares Commercial Real Estate (ACRE):

    • It's like Wells Fargo for commercial real estate loans.
    • Think of it as Goldman Sachs' commercial real estate lending division, but as a dedicated public company.

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    • Senior Mortgage Loans: Primary debt instruments secured by commercial real estate properties.
    • Subordinate Debt Products: Loans that hold a lower repayment priority compared to senior debt.
    • Mezzanine Loans: Hybrid financing solutions that combine characteristics of both debt and equity for commercial real estate projects.
    • Real Estate Preferred Equity Investments: Equity investments that provide preferential rights in dividend payments and asset liquidation.
    • Commercial Mortgage-Backed Securities (CMBS): Investments in diversified pools of commercial real estate mortgages.
    • Other CRE Investments: Various additional investment vehicles related to commercial real estate.

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    Ares Commercial Real Estate (ACRE) sells its financing solutions primarily to other companies and business entities. Due to the nature of commercial real estate lending, ACRE's specific borrowers (its customers) are generally not publicly disclosed. However, based on the company's description, its major customers fall into the following categories:
    • Owners of Commercial Real Estate (CRE) Properties: These are typically institutional investors, real estate funds, or private companies that own and hold commercial properties such as office buildings, multi-family residential complexes, industrial facilities, and retail centers. They seek financing for acquisitions, refinancing, or capital improvements.
    • Operators of CRE Properties: Companies that manage and operate commercial real estate assets often look for financing solutions to optimize their property portfolios, fund operational enhancements, or support strategic growth initiatives.
    • Sponsors of CRE Properties: This category includes real estate developers, private equity firms, and other institutional sponsors who initiate and manage commercial real estate projects. They require various forms of debt and equity financing (senior mortgage loans, mezzanine loans, preferred equity) for property development, value-add acquisitions, and repositioning strategies.

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    • Ares Management Corporation ARES

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    Bryan Donohoe Chief Executive Officer and Director

    Mr. Donohoe was appointed Chief Executive Officer in December 2019. He also serves as a Partner and Head of US Debt in Ares Real Estate, and is a member of the Ares Real Estate Global and Debt Investment Committees. Prior to joining Ares in 2019, Mr. Donohoe was a Managing Director for Commercial Real Estate Debt at AllianceBernstein. From 2010 to 2013, he was a Senior Professional at Ranieri Real Estate Partners. He also spent approximately 10 years at Deutsche Bank, where he focused on originating, structuring, and closing first mortgage loans. As part of Ares Management, a global alternative investment manager, he is involved with a company associated with private equity activities.

    Jeffrey Michael Gonzales Chief Financial Officer, Treasurer and Principal Accounting Officer

    Mr. Gonzales is a Managing Director in the Ares Finance and Accounting Department. He was appointed Chief Financial Officer effective August 30, 2024, having previously served as Controller. Before joining Ares in 2013, Mr. Gonzales worked in the Financial Services Assurance Practice of Deloitte & Touche LLP. He is a Certified Public Accountant. As part of Ares Management, a global alternative investment manager, he is involved with a company associated with private equity activities.

    Tae-Sik Yoon Chief Operating Officer

    Mr. Yoon was appointed Chief Operating Officer effective August 30, 2024, after having served as Chief Financial Officer and Treasurer since July 2012. He is also a Partner and Chief Financial Officer of Ares Real Estate and Private Equity Groups and serves on the Ares Real Estate Global and Debt Investment Committees. Prior to joining Ares in 2012, Mr. Yoon was a Senior Vice President of Akridge and held various positions at J.E. Robert Companies, Inc., including Managing Director and Chief Financial Officer. He also worked in the real estate investment banking group at Morgan Stanley & Co. and was an attorney at Williams & Connolly LLP.

    Carl G. Drake Partner, Senior Advisor

    Mr. Drake is a Partner and Senior Advisor in the Ares Public Markets Investor Relations Group. He formerly served as Head of Public Markets Investor Relations and Corporate Communications. Prior to joining Ares in 2008, he was a Managing Director in Equity Research at SunTrust Robinson Humphrey, where he covered financial services companies, and earlier served as a Vice President in Investment Banking. Additionally, Mr. Drake served as a Vice President at Creditanstalt Corporate Finance Inc., an Assistant Vice President at General Electric Capital Corporation, and a Financial Analyst at Metropolitan Life.

    Andrew Holm Partner, Head of U.S. Diversified Equity for Ares Real Estate

    Mr. Holm is a Partner in the Ares Real Estate Group, where he serves as a Co-Portfolio Manager of the U.S. opportunity funds and leads the group's equity investment activities. He also serves as a member of the Ares Real Estate Global and the Real Estate Debt Investment Committees. Prior to joining Ares in 2013, Mr. Holm was a Principal at AREA Property Partners, where he focused on sourcing and executing real estate investments across asset classes for AREA's equity and mezzanine debt businesses. Previously, he was an Analyst at Lazard in the real estate investment banking group.

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    Key Risks to Ares Commercial Real Estate (ACRE)

    1. Declining Commercial Real Estate Values and Increased Defaults: Ares Commercial Real Estate faces significant risks due to a potential global economic slowdown and declines in overall real estate values, which could impair its investments and adversely affect business operations. The commercial real estate (CRE) market has experienced strains from the rise in remote work, increasing interest rates, and declining property prices, making it difficult for borrowers to repay their loans and potentially leading to losses for lenders like ACRE. Rising delinquencies and defaults in commercial real estate are a growing concern.
    2. Exposure to the Distressed Office Property Sector: A significant portion of ACRE's portfolio has a heavy concentration in the office property sector, which is currently distressed. Office properties are particularly vulnerable due to the ongoing impact of increased remote work, leading to higher vacancy rates and a greater likelihood of defaults. In 2023, office loans constituted 37% of ACRE's portfolio. The challenges in the office market continue to be significant due to changes in work patterns and lifestyles.
    3. Interest Rate Fluctuations and High Leverage: The company is exposed to risks from changes in interest rates and credit spreads, which can impact its financial condition. Rising interest rates can increase ACRE's financing costs and reduce income from its floating-rate investments, thereby affecting its net interest margins. Furthermore, high debt levels contribute to ACRE's poor financial strength, with a debt-to-equity ratio of 1.56, indicating significant leverage that poses risks in a volatile market environment.
    ```

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    Ares Commercial Real Estate Corporation (ACRE) operates within the U.S. commercial real estate (CRE) finance market, originating and investing in various debt and equity products. The addressable markets for its main products and services are as follows:

    • Overall Commercial Real Estate (CRE) Debt Market: The total outstanding commercial/multifamily mortgage debt in the United States reached approximately $4.81 trillion at the end of the first quarter of 2025. As of the second quarter of 2025, total outstanding commercial real estate debt stood at $4.8 trillion. Commercial banks hold the largest share of these mortgages, at $1.8 trillion, representing 38% of the total, as of Q1 2025.
    • Senior Mortgage Loans: As a primary component of the CRE debt market, senior mortgage loans are part of the overall commercial mortgage debt outstanding. In 2024, first liens accounted for 92% of the dollar volume closed by commercial mortgage bankers, with total CRE mortgage borrowing and lending estimated at $498 billion.
    • Mezzanine Loans, Subordinate Debt Products, and Real Estate Preferred Equity Investments: These products fall under the broader category of mezzanine finance or junior capital. The global mezzanine finance market was valued at approximately $197.52 billion in 2024 and is projected to grow to $212.58 billion in 2025. North America represents the largest market for mezzanine finance, accounting for approximately 60% of the global share.
    • Commercial Mortgage-Backed Securities (CMBS): The U.S. CMBS market had a market capitalization of around $1.8 trillion as of December 31, 2025. As of the first quarter of 2025, CMBS, collateralized debt obligation (CDO), and other asset-backed securities (ABS) issues held $642 billion (13%) of commercial/multifamily mortgages in the U.S. Additionally, domestic, private-label CMBS issuance increased to $125.6 billion in 2025.

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    Expected Drivers of Future Revenue Growth for Ares Commercial Real Estate (ACRE)

    Over the next 2-3 years, Ares Commercial Real Estate (ACRE) anticipates several key drivers to fuel its revenue growth:

    1. Increased Loan Origination and Portfolio Expansion: ACRE has resumed investment activity, with significant new loan commitments in 2025, particularly in residential and industrial properties, leading to portfolio growth. The company aims to expand its loan portfolio to approximately $2 billion, with expectations for net portfolio growth of $500 million to $700 million in 2026.
    2. Resolution of Risk-Rated Loans and Portfolio Repositioning: A key focus for ACRE is the resolution of its risk-rated 4 and 5 loans, including specific assets like the Brooklyn residential condo project, with sales anticipated to begin in 2026. This strategy is expected to free up capital and allow for reinvestment, significantly contributing to future earnings growth.
    3. Strategic Shift Towards Residential and Industrial Properties: ACRE is actively rebalancing its portfolio by prioritizing originations in non-office sectors, such as residential, industrial, and self-storage, due to their enhanced risk-adjusted return potential. The company has reduced its office loan exposure and plans no new commitments for office properties, aiming to return the portfolio mix to historically higher percentages of multifamily assets.
    4. Increased Leverage to Support Investment Activity: Management has indicated a strategy to increase leverage to 2.0x in the near term and target a long-term debt-to-equity ratio of 3.0x. This increased leverage is intended to support continued investment in new loans and help the company achieve its historical return on equity.
    5. Leveraging the Broader Ares Real Estate Platform and Co-investment Opportunities: ACRE plans to continue benefiting from the extensive capabilities, scale, and debt capacity of the broader Ares real estate platform. A significant portion of its new loan commitments in 2025 were co-investments alongside other Ares-affiliated vehicles, a strategy expected to enhance sourcing and credit capabilities for future growth.

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    Share Repurchases

    • Ares Commercial Real Estate extended its stock repurchase program, authorizing up to $50 million in share repurchases until July 31, 2026.
    • No shares were repurchased during 2025.

    Share Issuance

    • In 2021, the company raised accretive equity to support increased investment activity and enhance earnings.
    • In the third quarter of 2021, ACRE fully deployed proceeds from its June equity offering, which enabled a more than 30% growth in its loan portfolio.
    • Shares outstanding were 55,026,453 as of November 4, 2025.

    Inbound Investments

    • More than 60% of commitments originated in fiscal year 2025 were co-invested alongside other Ares managed funds.
    • More than half of the dollars committed in new loans in 2025 represented co-investment opportunities alongside other Ares management affiliated vehicles, leveraging the broader Ares real estate platform.
    • ACRE is externally managed by a subsidiary of Ares Management Corporation (NYSE: ARES), a global alternative investment manager with approximately $623 billion of assets under management as of December 31, 2025.

    Outbound Investments

    • Ares Commercial Real Estate closed a record $1.4 billion of new loan commitments in 2021.
    • In 2025, ACRE closed 13 new loan commitments totaling $486 million, with over 50% collateralized by residential and industrial properties.
    • In the fourth quarter of 2025, the company closed eight new loan commitments totaling $393 million, contributing to a portfolio balance of $1.6 billion, a 24% increase versus year-end 2024.

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    TickerCompanyCategory1W RtnYTD Rtn
    KWEBKraneShares CSI China Internet ETFEquity8.4%-16.3%
    IGViShares Expanded Tech-Software Sector...Equity7.5%-10.5%
    XLYState Street Consumer Discretionary S...Equity6.1%-2.6%
    FXIiShares China Large-Cap ETFEquity5.6%-4.7%
    AKREAkre Focus ETFEquity5.2%-12.2%
    MAGSRoundhill Magnificent Seven ETFEquity4.4%0.0%
    BOTZGlobal X Funds Global X Robotics & Ar...Equity4.1%-2.8%
    PPLTETFS Physical Platinum SharesCommodity3.7%-19.8%
    COWZPacer US Cash Cows 100 ETFEquity3.1%11.5%
    PALLETFS Physical Palladium SharesCommodity3.0%-20.1%

    Top Losers

    TickerCompanyCategory1W RtnYTD Rtn
    USOUnited States Oil Fund LPCommodity-5.5%86.8%
    UNGUnited States Natural Gas Fund LPCommodity-4.6%-17.9%
    SOXQInvesco PHLX Semiconductor ETFEquity-4.3%59.9%
    SOXXiShares Semiconductor ETFEquity-4.2%67.8%
    XLUState Street Utilities Select Sector ...Equity-4.2%4.6%
    SMHVanEck Semiconductor ETFEquity-3.7%50.1%
    EWYiShares MSCI South Korea ETFEquity-3.6%61.6%
    IYTiShares U.S. Transportation ETFEquity-3.6%14.3%
    USRTiShares Core U.S. REIT ETFReal Estate-2.8%19.6%
    NASATema Space Innovators ETFEquity-2.3%-14.1%

    Top Gainers

    TickerCompanyCategory1M RtnYTD Rtn
    USOUnited States Oil Fund LPCommodity25.1%86.8%
    ETHAiShares Ethereum Trust ETFCryptocurrency15.4%-37.3%
    XOPState Street SPDR S&P Oil & Gas Explo...Equity15.4%41.1%
    FXIiShares China Large-Cap ETFEquity14.2%-4.7%
    KWEBKraneShares CSI China Internet ETFEquity13.4%-16.3%
    XLEState Street Energy Select Sector SPD...Equity12.8%34.1%
    DBCInvesco DB Commodity Index Tracking FundCommodity11.3%31.7%
    PDBCInvesco Optimum Yield Diversified Com...Commodity11.3%32.5%
    FXNFirst Trust Energy AlphaDEX FundEquity10.5%34.7%
    HGERHarbor Commodity All-Weather Strategy...Commodity8.9%29.5%

    Top Losers

    TickerCompanyCategory1M RtnYTD Rtn
    NASATema Space Innovators ETFEquity-26.6%-14.1%
    SOXXiShares Semiconductor ETFEquity-15.8%67.8%
    EWYiShares MSCI South Korea ETFEquity-15.3%61.6%
    SOXQInvesco PHLX Semiconductor ETFEquity-15.3%59.9%
    ICLNiShares Global Clean Energy ETFEquity-13.0%6.8%
    ARKKARK Innovation ETFEquity-13.0%-7.4%
    SMHVanEck Semiconductor ETFEquity-12.9%50.1%
    UNGUnited States Natural Gas Fund LPCommodity-12.7%-17.9%
    XOVREntrepreneurShares Series Trust ERSha...Equity-11.9%-7.6%
    ARKQARK Autonomous Technology & Robotics ETFEquity-11.8%0.4%

    More From Trefis

    Research & Analysis

    Invest in Strategies

    Wealth Management

    Peer Comparisons

    Peers to compare with:

    Financials

    ACRESTWDBXMTARIKREFLADRMedian
    NameAres Com.Starwood.Blacksto.Apollo C.KKR Real.Ladder C. 
    Mkt Price4.2615.9814.546.626.969.568.26
    Mkt Cap0.25.92.50.90.41.21.1
    Rev LTM1882260926353213238
    Op Inc LTM-------
    FCF LTM-45420353283410369
    FCF 3Y Avg116033675991130110
    CFO LTM-4383335311663103109
    CFO 3Y Avg12758367173104130151

    Growth & Margins

    ACRESTWDBXMTARIKREFLADRMedian
    NameAres Com.Starwood.Blacksto.Apollo C.KKR Real.Ladder C. 
    Rev Chg LTM-29.6%-2.7%25.7%45.6%-61.0%-12.0%-7.3%
    Rev Chg 3Y Avg-40.6%-9.3%-2.6%-6.4%-29.4%-12.7%-11.0%
    Rev Chg Q-32.3%-4.2%18.1%-13.8%-191.7%0.0%-9.0%
    QoQ Delta Rev Chg LTM-21.0%-0.9%4.1%-3.5%-52.7%0.0%-2.2%
    Op Inc Chg LTM-------
    Op Inc Chg 3Y Avg-------
    Op Mgn LTM-------
    Op Mgn 3Y Avg-------
    QoQ Delta Op Mgn LTM-------
    CFO/Rev LTM-238.8%101.3%57.9%44.1%119.2%48.2%53.1%
    CFO/Rev 3Y Avg7.4%84.2%65.6%76.7%94.2%52.7%71.1%
    FCF/Rev LTM-250.6%51.1%57.9%10.5%64.9%48.2%49.7%
    FCF/Rev 3Y Avg3.4%65.6%65.6%24.3%73.9%52.7%59.2%

    Valuation

    ACRESTWDBXMTARIKREFLADRMedian
    NameAres Com.Starwood.Blacksto.Apollo C.KKR Real.Ladder C. 
    Mkt Cap0.25.92.50.90.41.21.1
    P/S13.07.14.03.58.25.66.4
    P/Op Inc-------
    P/EBIT-------
    P/E-11.916.7159.17.3-2.422.812.0
    P/CFO-5.47.07.08.06.911.67.0
    Total Yield5.8%17.7%13.6%29.1%-27.6%14.2%13.9%
    Dividend Yield14.2%11.7%13.0%15.4%14.9%9.8%13.6%
    FCF Yield 3Y Avg2.3%9.6%12.0%4.3%15.6%9.6%9.6%
    D/E5.42.26.48.910.62.65.9
    Net D/E5.02.26.38.710.42.45.6

    Returns

    ACRESTWDBXMTARIKREFLADRMedian
    NameAres Com.Starwood.Blacksto.Apollo C.KKR Real.Ladder C. 
    1M Rtn-5.8%-3.0%-15.7%-2.3%-1.0%-4.5%-3.8%
    3M Rtn-16.7%-10.1%-21.6%-8.0%11.2%-5.4%-9.1%
    6M Rtn-12.7%-5.7%-20.4%-3.8%-11.2%-8.7%-10.0%
    12M Rtn9.0%-8.2%-13.7%11.8%-14.1%-4.0%-6.1%
    3Y Rtn-39.6%6.2%-10.1%32.6%-20.8%14.3%-2.0%
    1M Excs Rtn-6.0%-2.2%-14.4%-3.8%-2.3%-4.3%-4.0%
    3M Excs Rtn-19.7%-14.3%-25.2%-11.1%11.3%-8.8%-12.7%
    6M Excs Rtn-19.9%-14.4%-28.6%-12.5%-20.3%-17.7%-18.8%
    12M Excs Rtn-9.9%-26.9%-31.4%-4.6%-31.8%-23.2%-25.1%
    3Y Excs Rtn-104.1%-59.3%-78.6%-45.1%-87.2%-56.6%-69.0%

    Comparison Analyses

    null

    Financials

    $ Mil | FY: 12/312026Q12025Q42025Q32025Q22025Q12024Q42024Q32024Q22024Q12023Q42023Q32023Q2
    Period End3/31/202612/31/20259/30/20256/30/20253/31/202512/31/20249/30/20246/30/20243/31/202412/31/20239/30/20236/30/2023
    Filing Date5/7/20262/10/202611/7/20258/5/20255/7/20252/12/202511/7/20248/6/20245/9/20242/22/202411/3/20238/2/2023
    Key Financials Quarterly            
    Total Revenue101612-2015-0110-26171925
    Net Income-10-45-119-11-6-6-12-399-2
    EPS-0.17-0.070.08-0.200.17-0.20-0.11-0.11-0.23-0.730.17-0.04
    Key Financials TTM            
    Total Revenue TTM18236526-15210358195104
    Net Income TTM-20-1-8-18-13-35-64-49-45-393-5
    Growth Rates Quarterly            
    Total Revenue Growth-32.3%3359.6%14.5%-5084.1%157.4%-103.0%-42.7%-98.4%-224.7%-45.6%-30.3%-0.6%
    Net Income Growth-202.8%63.8%179.1%-80.2%175.8%72.9%-164.0%-178.7%-91.4%-1454.4%1326.1%-121.9%
    Margins Quarterly            
    Net Income Margin-94.9%-24.2%37.3%-62.5%--54.0%-1493.9%--238.0%48.3%-8.8%
    Cash & Debt            
    Total Cash8629859813472969912813989171
    Total Debt1,2721,0478108889451,1721,3431,4571,4801,6171,6441,670
    Net Debt / (Cash)1,1851,0187257908111,1001,2471,3581,3521,4781,5541,500
    Cash Flows Quarterly            
    FCF from Operations-57545878911101412
    Cash Flows TTM            
    FCF from Operations TTM-432124283236394447475251
    Returns to Shareholders Quarterly            
    Dividends88881414141418181919
    Share Repurchases-0-0-0-0-0-0-0-0-0-0-0-0
    Return on Invested Capital (ROIC) Quarterly            
    ROIC-1.9%-0.8%1.2%-2.7%2.3%-2.2%-1.1%-1.1%-2.3%-6.9%1.5%-0.4%
    Return on Invested Capital (ROIC) TTM            
    ROIC TTM-1.0%-0.0%-0.5%-1.1%-0.8%-1.8%-3.1%-2.2%-2.1%-1.7%0.1%-0.2%

    Segment Financials

    Revenue by Segment
    $ Mil20252024202320222021
    Single Segment23-1581109102
    Total23-1581109102


    Assets by Segment
    $ Mil201520142013
    principal lending1,2461,5731,077
    mortgage banking133295100
    Total1,3791,8681,177


    Price Behavior

    Price Behavior
    Market Price$4.26 
    Market Cap ($ Bil)0.2 
    First Trading Date04/26/2012 
    Distance from 52W High-20.4% 
       50 Days200 Days
    DMA Price$4.58$4.64
    DMA Trendindeterminatedown
    Distance from DMA-6.9%-8.1%
     3M1YR
    Volatility32.9%38.1%
    Downside Capture116.7576.69
    Upside Capture16.4669.56
    Correlation (SPY)21.7%27.6%
    ACRE Betas & Captures as of 7/31/2026

     1M2M3M6M1Y3Y
    Beta0.760.430.510.820.810.97
    Up Beta-2.33-1.17-0.520.440.540.72
    Down Beta1.580.680.831.251.261.07
    Up Capture98%43%19%55%60%63%
    Bmk +ve Days11223567138427
    Stock +ve Days9182861114359
    Down Capture179%112%115%104%82%106%
    Bmk -ve Days11212859114326
    Stock -ve Days12233259123369

    [1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
    Based On 1-Year Data
    Annualized
    Return    		Annualized
    Volatility    		Sharpe
    Ratio    		Correlation
    with ACRE
    ACRE7.9%37.9%0.27-
    Sector ETF (XLF)9.4%14.8%0.3935.6%
    Equity (SPY)18.8%12.9%1.0727.4%
    Gold (GLD)23.6%28.1%0.747.3%
    Commodities (DBC)30.2%19.7%1.22-14.1%
    Real Estate (VNQ)13.7%13.9%0.6947.3%
    Bitcoin (BTCUSD)-46.8%43.0%-1.3415.0%

    Smart multi-asset allocation framework can stack odds in your favor. Learn How
    Based On 5-Year Data
    Annualized
    Return    		Annualized
    Volatility    		Sharpe
    Ratio    		Correlation
    with ACRE
    ACRE-11.7%35.5%-0.28-
    Sector ETF (XLF)11.3%18.4%0.4749.5%
    Equity (SPY)12.6%17.1%0.5648.1%
    Gold (GLD)17.1%18.5%0.759.2%
    Commodities (DBC)9.0%19.5%0.3512.7%
    Real Estate (VNQ)2.5%18.9%0.0356.6%
    Bitcoin (BTCUSD)13.4%53.3%0.4320.9%

    Smart multi-asset allocation framework can stack odds in your favor. Learn How
    Based On 10-Year Data
    Annualized
    Return    		Annualized
    Volatility    		Sharpe
    Ratio    		Correlation
    with ACRE
    ACRE0.3%45.1%0.18-
    Sector ETF (XLF)13.6%22.0%0.5652.2%
    Equity (SPY)15.0%17.9%0.7146.6%
    Gold (GLD)11.3%16.1%0.573.3%
    Commodities (DBC)7.3%18.0%0.3218.1%
    Real Estate (VNQ)4.9%20.7%0.2059.5%
    Bitcoin (BTCUSD)57.6%66.2%0.9817.1%

    Smart multi-asset allocation framework can stack odds in your favor. Learn How

    Short Interest

    Short Interest: As Of Date7152026
    Short Interest: Shares Quantity2.1 Mil
    Short Interest: % Change Since 63020267.5%
    Average Daily Volume0.4 Mil
    Days-to-Cover Short Interest5.2 days
    Basic Shares Quantity55.3 Mil
    Short % of Basic Shares3.7%

    Returns Analyses

    Earnings Returns History

    Updated 6/9/2026
    Expand for More
     Forward Returns
    Earnings Date1D Returns5D Returns21D Returns
    5/7/20261.8%-6.5%-4.8%
    2/10/202611.7%2.0%-1.6%
    11/7/202512.7%8.5%15.6%
    8/5/2025-0.5%5.8%20.7%
    5/7/20253.0%2.6%2.4%
    2/12/2025-12.2%-16.3%-22.8%
    11/7/202410.2%9.7%8.8%
    8/6/2024-3.0%-4.7%-0.3%
    ...
    SUMMARY STATS   
    # Positive151413
    # Negative91011
    Median Positive3.5%2.9%6.3%
    Median Negative-3.0%-4.0%-2.0%
    Max Positive12.7%9.7%27.2%
    Max Negative-12.2%-16.3%-23.0%
     Collapse to Preview
     Forward Returns
    Earnings Date1D Returns5D Returns21D Returns
    5/7/20261.8%-6.5%-4.8%
    2/10/202611.7%2.0%-1.6%
    11/7/202512.7%8.5%15.6%
    8/5/2025-0.5%5.8%20.7%
    5/7/20253.0%2.6%2.4%
    2/12/2025-12.2%-16.3%-22.8%
    11/7/202410.2%9.7%8.8%
    8/6/2024-3.0%-4.7%-0.3%
    5/9/2024-1.6%-1.6%1.7%
    2/22/2024-6.6%-12.0%-5.0%
    11/3/20233.0%-1.0%6.3%
    8/2/20232.0%1.2%-0.2%
    5/2/20233.9%3.3%17.9%
    2/15/20231.6%-3.3%-23.0%
    11/2/2022-3.4%-4.8%-2.0%
    7/29/20220.7%-2.5%-0.1%
    5/3/20224.1%0.0%-0.7%
    2/15/20223.5%0.3%6.1%
    11/3/2021-2.3%1.4%-5.4%
    7/30/2021-3.0%-3.0%4.0%
    5/4/2021-0.3%1.5%6.7%
    2/18/20211.7%6.1%4.9%
    10/29/20205.1%7.9%27.2%
    8/6/20204.4%3.4%3.8%
    SUMMARY STATS   
    # Positive151413
    # Negative91011
    Median Positive3.5%2.9%6.3%
    Median Negative-3.0%-4.0%-2.0%
    Max Positive12.7%9.7%27.2%
    Max Negative-12.2%-16.3%-23.0%

    SEC Filings

    Expand for More
    Report DateFiling DateFiling
    03/31/202605/07/202610-Q
    12/31/202502/10/202610-K
    09/30/202511/07/202510-Q
    06/30/202508/05/202510-Q
    03/31/202505/07/202510-Q
    12/31/202402/12/202510-K
    09/30/202411/07/202410-Q
    06/30/202408/06/202410-Q
    03/31/202405/09/202410-Q
    12/31/202302/22/202410-K
    09/30/202311/03/202310-Q
    06/30/202308/02/202310-Q
    03/31/202305/02/202310-Q
    12/31/202202/15/202310-K
    09/30/202211/02/202210-Q
    06/30/202207/29/202210-Q
     Collapse to Preview
    Report DateFiling DateFiling
    03/31/202605/07/202610-Q
    12/31/202502/10/202610-K
    09/30/202511/07/202510-Q
    06/30/202508/05/202510-Q
    03/31/202505/07/202510-Q
    12/31/202402/12/202510-K
    09/30/202411/07/202410-Q
    06/30/202408/06/202410-Q
    03/31/202405/09/202410-Q
    12/31/202302/22/202410-K
    09/30/202311/03/202310-Q
    06/30/202308/02/202310-Q
    03/31/202305/02/202310-Q
    12/31/202202/15/202310-K
    09/30/202211/02/202210-Q
    06/30/202207/29/202210-Q
    03/31/202205/03/202210-Q
    12/31/202102/15/202210-K
    09/30/202111/03/202110-Q
    06/30/202107/30/202110-Q
    03/31/202105/04/202110-Q
    12/31/202002/18/202110-K
    09/30/202010/29/202010-Q
    06/30/202008/06/202010-Q
    03/31/202005/08/202010-Q
    12/31/201902/20/202010-K
    09/30/201911/08/201910-Q
    06/30/201907/26/201910-Q

    Recent Forward Guidance

    Updated 7/27/2026

    Latest: Q1 2026 Earnings Reported 5/7/2026

    Forward GuidanceGuidance Change
    MetricLowMidHigh% Chg% DeltaChangePrior
    Q2 2026 Dividends 0.15 0 AffirmedActual: 0.15 for Q1 2026
    Q2 2026 New Loan Commitments 95.00 Mil    

    Prior: Q4 2025 Earnings Reported 2/10/2026

    Forward GuidanceGuidance Change
    MetricLowMidHigh% Chg% DeltaChangePrior
    Q1 2026 Dividends 0.15 0.0% Same NewActual: 0.15 for Q4 2025

    Q3 2025 Earnings Reported 11/7/2025

    Forward GuidanceGuidance Change
    MetricLowMidHigh% Chg% DeltaChangePrior
    Q4 2025 Dividends 0.15 0 AffirmedActual: 0.15 for Q3 2025

    Insider Activity

    Updated 5/1/2026
    Expand for More
    #OwnerTitleHoldingActionFiling DatePriceSharesTransacted
    Value    		Value of
    Held Shares    		Form
    1Donohoe, Bryan PatrickChief Executive OfficerDirectSell11520264.9321,761107,2301,232,871Form
    2Gonzales, Jeffrey MichaelCFO and TreasurerDirectSell11520264.936,21830,640436,255Form
    3Feingold, AntonGen. Counsel VP and SecretaryDirectSell11520264.937,60637,479457,055Form
     Collapse to Preview
    #OwnerTitleHoldingActionFiling DatePriceSharesTransacted
    Value    		Value of
    Held Shares    		Form
    1Donohoe, Bryan PatrickChief Executive OfficerDirectSell11520264.9321,761107,2301,232,871Form
    2Gonzales, Jeffrey MichaelCFO and TreasurerDirectSell11520264.936,21830,640436,255Form
    3Feingold, AntonGen. Counsel VP and SecretaryDirectSell11520264.937,60637,479457,055Form

    Industry Resources

    External Quote Links


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