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Ares Commercial Real Estate (DE:41I)
:41I
Earnings Data
Report Date
Aug 06, 2025TBA Not Confirmed
Period Ending
2025 (Q2)Consensus EPS Forecast
-0.05Last Year’s EPS
-0.11Same Quarter Last Year
Moderate Sell
Based on 6 Analysts Ratings
Earnings Call Summary
Earnings Call Date:May 07, 2025
|% Change Since: 14.63%
|Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment|Neutral
The earnings call highlighted significant improvements in liquidity and financial flexibility, driven by record loan repayments and reduced borrowings. However, challenges remain with non-performing loans and uncertain market conditions affecting short-term earnings predictability.Company Guidance
In the first quarter of fiscal year 2025, Ares Commercial Real Estate Corporation reported several key financial metrics and strategic initiatives. The company collected $307 million in repayments across nine loans, significantly boosting liquidity and reducing outstanding borrowings by $228 million to $946 million. This led to a net debt to equity ratio, excluding CECL, of 1.2 times, down from 1.9 times a year earlier. The available capital increased by 15% to $147 million as of May 2, 2025. ACRE's portfolio showed stable credit quality with no new risk rated four or five loans, maintaining a book value per share of $9.88. The company is focused on reducing office loan exposure and resolving underperforming loans, supported by improved lease terms and occupancy rates in key assets. Despite a challenging market environment, ACRE plans to leverage its strong balance sheet for strategic opportunities, including potential share buybacks and new loan originations, while also declaring a regular cash dividend of $0.15 per share for the second quarter of 2025, yielding over 14% annually.Record Loan Repayments
Collected $307 million in repayments across nine loans, the highest amount of repayments for a quarter as a percentage of outstanding principal balance in the company's history.
Reduced Borrowings and Improved Liquidity
Reduced outstanding borrowings by $228 million to $946 million and increased available capital to $147 million, representing a 15% increase since December 31, 2024.
Positive Leasing Momentum in Office Loans
The largest office loan, a risk rated five, saw positive leasing momentum with a weighted average lease term of eight years and occupancy in excess of 90%.
Decrease in Net Debt to Equity Ratio
Net debt to equity ratio declined to 1.2 times at the end of the first quarter, down from 1.9 times at the end of the first quarter of 2024.
Stable Credit Quality and Book Value
No new risk rated four or five loans with a consistent book value per share of $9.88 compared to $9.90 at the end of December 31, 2024.
Improved Financing Terms
Redemption of FL3 securitization and renewal of $450 million Wells Fargo secured funding facility reduced borrowing costs and extended maturity dates.
DE:41I Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
DE:41I Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 07, 2025 | €3.66 | €3.63 | -0.98% |
Feb 12, 2025 | €5.57 | €5.67 | +1.90% |
Nov 07, 2024 | €5.20 | €5.39 | +3.75% |
Aug 06, 2024 | €5.79 | €5.89 | +1.62% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Ares Commercial Real Estate (DE:41I) report earnings?
Ares Commercial Real Estate (DE:41I) is schdueled to report earning on Aug 06, 2025, TBA Not Confirmed.
What is Ares Commercial Real Estate (DE:41I) earnings time?
Ares Commercial Real Estate (DE:41I) earnings time is at Aug 06, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is the P/E ratio of Ares Commercial Real Estate stock?
The P/E ratio of Ares Commercial is N/A.
What is DE:41I EPS forecast?
DE:41I EPS forecast for the fiscal quarter 2025 (Q2) is -0.05.