Ares Commercial Real Estate Corporation (ACRE) AI Stock Analysis

Ares Commercial Real Estate Corporation operates as a specialized finance firm that focuses on originating and investing in commercial real estate (CRE) loans and related assets throughout the United States. Catering to property owners, operators, and sponsors, the company offers tailored financing solutions. Its investment portfolio includes senior mortgage loans, subordinate debt products, mezzanine loans, real estate preferred equity, and investments in commercial mortgage-backed securities (CMBS). Established in 2011 and based in New York, New York, the firm operates as a real estate investment trust (REIT) under the Internal Revenue Code of 1986, distributing the majority of its taxable income to shareholders.

Ares Commercial Real Estate experienced revenue fluctuations over recent fiscal periods, moving from $102.1M in FY2021 to $109.0M in FY2022, before declining to $92.9M in FY2023 and $69.7M in FY2024. In FY2025, revenue increased 22.5% to $85.3M, while net losses narrowed to -$902,000 from -$35.0M in FY2024. Operating margins stood at 72.4% in FY2025, rebounding from negative territory in FY2023. Over the trailing twelve months ending June 30, 2026, revenue totaled $35.5M with an operating margin of 33.5% and a net margin of -12.5%. In the latest quarter, quarterly revenue fell 58.8% year-over-year, while quarterly earnings grew 1598.1%.

As of June 30, 2026, Ares Commercial Real Estate held $17.6M in cash and short-term investments against total debt of $1.26B, resulting in net debt of $1.25B. Total assets stood at $1.82B and shareholders' equity was $489.2M, reflecting a debt-to-equity ratio of 2.58 and a current ratio of 0.22. During FY2025, the company generated $21.4M in operating cash flow and $19.7M in free cash flow. Capital expenditures were $1.6M, while dividends paid totaled $39.0M, exceeding generated free cash flow.

Ares Commercial Real Estate closed at $3.45 on October 16, 2026, with a market capitalization of $191.4M and an enterprise value of $1.44B. The stock trades at a forward P/E of 7.3x, lower than the median of 23.5x for its US-listed Real Estate peers. Its price-to-book ratio is 0.5x, and its EV/EBITDA stands at 15.5x compared to the peer median of 14.7x. Over the past year, the stock fell 12.0%, underperforming the S&P 500 benchmark return of 16.8%, and its 5-year return dropped 58.5% against the index gain of 83.0%.

ACRE pays a forward annual dividend of $0.60 per share, distributed quarterly, yielding 17.39% as of October 16, 2026. The company has paid dividends for 15 consecutive years, though its 5-year annualized dividend growth stands at -14.6%. The current payout ratio is elevated at 142.9%, with the last ex-dividend date on September 30, 2026.

Wall Street coverage includes 8 analysts: 0 Strong Buy, 1 Buy, 5 Hold, 1 Sell, and 1 Strong Sell. The mean price target is $5.00, which is 44.9% above the last close of $3.45. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $55.7M and EPS of $0.26, representing 318.2% earnings growth. Over the last four quarters, the firm beat EPS estimates 2 times. The next earnings date is scheduled for November 6, 2026.

This page is an AI-written research summary of Ares Commercial Real Estate Corporation (ACRE). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: ACRE income statement, ACRE balance sheet, ACRE key metrics, ACRE analyst forecast, ACRE chart. See the ACRE stock overview for the latest quote and news.