Ares Commercial Real Estate Corporation (NYSE:ACRE) is included among the 12 Best Micro-Cap Dividend Stocks to Buy Now.
On May 13, Keefe Bruyette analyst Jade Rahmani lowered the firm’s price recommendation on Ares Commercial Real Estate Corporation (NYSE:ACRE) to $5.50 from $6. It reiterated an Outperform rating on the shares.
During the company’s Q1 2026 earnings call, CEO & Director Bryan Donohoe said the commercial real estate market stayed relatively stable during the quarter despite continued macroeconomic uncertainty and volatility across broader corporate credit markets. Donohoe said the company closed three new loan commitments totaling $294 million in the first quarter. He added that the loans held for the investment portfolio grew to 35 loans valued at $1.7 billion, marking a $110 million increase from the prior quarter.
He also noted that, as of March 31, 2026, the company had increased the outstanding principal balance of its portfolio by 22% year over year. At the same time, management improved portfolio diversification and reduced exposure to office loans by nearly 25%. Discussing credit quality, Donohoe said the company increased its CECL reserve for a risk-rated 5 Chicago office loan by about $5 million. He acknowledged that resolving the loan was taking longer than management had originally expected.
Donohoe also said the company started the formal sales process for its North Carolina office REO property during the quarter. He added that the remaining property had been reclassified as held for sale.
CFO & Treasurer Jeffrey Gonzales reported that Ares Commercial posted a GAAP net loss of about $9.6 million, or $0.17 per diluted common share, in Q1 2026. He also said distributable earnings totaled about $3.2 million, or $0.06 per diluted common share, during the quarter.
Ares Commercial Real Estate Corporation (NYSE:ACRE) is a specialty finance company focused on directly originating and investing in commercial real estate loans and related investments. Through its national direct origination platform, the company provides financing solutions for commercial real estate owners and operators.
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