Ares Commercial Real Estate Corporation (ACRE) functions as a specialized financial institution, primarily engaged in developing and investing in a diverse portfolio ...
Ares Commercial Real Estate Corporation (ACRE) is a specialty finance company that primarily engages in originating and investing in a diverse portfolio of commercial real estate (CRE) debt and associated investments throughout the United States. The company offers a broad spectrum of funding options designed for owners, operators, and sponsors ...Ares Commercial Real Estate Corporation (ACRE) is a specialty finance company that primarily engages in originating and investing in a diverse portfolio of commercial real estate (CRE) debt and associated investments throughout the United States. The company offers a broad spectrum of funding options designed for owners, operators, and sponsors of commercial properties. ACRE's investment activities encompass originating senior mortgage loans, various subordinate debt products, hybrid mezzanine financing, preferred equity stakes in real estate, and other CRE-related assets, including commercial mortgage-backed securities (CMBS). For federal tax purposes, ACRE has opted for and qualifies as a Real Estate Investment Trust (REIT) under the Internal Revenue Code of 1986. The firm's operations are managed by Ares Commercial Real Estate Management LLC. ACRE was established in 2011 and its main office is situated in New York, New York. The company's business model focuses on generating current income and capital preservation through disciplined underwriting and active asset management. Financially, ACRE has a market capitalization of approximately $270 million, with a price-to-book ratio of 0.55 and a dividend yield of 12.3%. The company operates with a leverage ratio (debt-to-equity) of 2.58 and has a return on equity of -0.9% as of the latest TTM. Key executives include CEO Bryan Patrick Donohoe, who leads the company's strategic direction. ACRE is part of the Ares Management platform, which was founded in 1997 and is a global alternative investment manager with over $428 billion in assets under management. The company has no direct employees; its operations are managed by Ares Commercial Real Estate Management LLC.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$85.3M
+22.5%
-47.8%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-902000
+97.4%
+145.6%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+57.4%
-42.6%
+30.6%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+72.4%
+59.0%
+32.4%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-1.1%
+97.9%
+187.4%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$19.7M
-44.5%
+209.5%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+23.1%
-54.7%
+309.6%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
205.6%
-5.3%
+21.3%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.08x
-98.2%
+91.7%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good afternoon. Welcome to the Ares Commercial Real Estate Corporation's Second Quarter Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded on Tuesday, August 4, 2026. I would now like to turn the call over to Mr. John Stilmar, Partner of Public Markets Investor Relations. Please go ahead, sir.
John Stilmar: Good afternoon, and thank you for joining us on today's conference call. In addition to our press release and the 10-Q that we filed with the SEC, we have posted an earnings presentation under the Investor Resources section of our website at www.arescre.com. Before we begin, I want to remind everyone that comments made during the course of this conference call and webcast and the accompanying documents contain forward-looking statements and are subject to risks and uncertainties. Many of these forward-looking statements can be identified by the use of words such as anticipates, believes, expects, intends, will, should, may and similar such expressions. These forward-looking statements are based on management's current expectation of market conditions and management's judgment. These statements are not guarantees of future performance, conditions or results and do involve a number of risks and uncertainties. The company's actual results could differ materially from those expressed in forward-looking statements as a result of a number of factors, including those listed in its SEC filings. Ares Commercial Real Estate Corporation assumes no obligation to update any such forward-looking statements. During this conference call, we will refer to certain non-GAAP financial measures. We use these as measures of operating performance, and these measures should not be considered in isolation for or a substitute for measures prepared in accordance with generally accepted accounting principles. These measures may not be comparable to like-kind measures used by other companies. Now I'd like to turn the call over to our CEO, Bryan Donohoe. Bryan?
Bryan Donohoe: Thank you, John. Good afternoon, everyone, and thank you for joining us. I'm here today with Jeff Gonzales, our CFO; Tae-Sik Yoon, our COO; as well as other members of the management and Investor Relations teams. During the second quarter, we saw the commercial real estate market exhibit relative stability despite broader macroeconomic and geopolitical uncertainty. Property prices appreciated modestly, financing markets remained open and liquidity continued to improve. While sales transaction activity did moderate somewhat during the second quarter, we see compelling opportunities driven by refinancing needs and a robust pipeline of floating rate lending opportunities, offering attractive risk-adjusted returns. Consistent with recent trends, private real estate capital continues to increase its role in the market. Today, debt funds have become the second largest source of commercial real estate lending behind banks according to MSCI, …
