| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 13.46 | 10.0% |
| Total Income | 13.46 | 10.0% |
| Expenditure | 23.04 | 333.1% |
| PBT | -9.58 | 199.5% |
| Net Profit | -9.61 | 202.8% |
| OPM | — | |
| NPM | -71.36% | 133.88pp |
| EPS | — |
Ares Commercial Real Estate Reports Q1 2026 Results
07 May 2026 · 7 May, 3:42 pm
Summary
Ares Commercial Real Estate Corporation reported a GAAP net loss of $(9.6) million, or $(0.17) per diluted common share, and Distributable Earnings of $3.2 million, or $0.06 per diluted common share, for the first quarter of 2026. The company closed $294 million in new loan commitments and increased its total loans held for investment portfolio to $1.7 billion. They also declared a cash dividend of $0.15 per common share for Q2 2026. The company increased borrowing capacity by $300 million through the upsize of two secured funding facilities.
Key Highlights
- 1
Ares Commercial Real Estate Corporation reported GAAP net loss of $(9.6) million, or $(0.17) per diluted common share for Q1 2026.
- 2
Distributable Earnings for the first quarter of 2026 were $3.2 million, or $0.06 per diluted common share.
- 3
The company closed $294 million of new loan commitments during the first quarter of 2026.
- 4
The total loans held for investment portfolio increased to $1.7 billion in Q1 2026, an increase of $110 million QoQ.
- 5
The company declared a cash dividend of $0.15 per common share for shareholders for Q2 2026.
- 6
Risk rated 4 and 5 loans were reduced to $368 million at Q1 2026 driven by the exit of the $28 million risk rated 5 Pennsylvania multifamily loan.
- 7
Borrowing capacity was increased by $300 million through the upsize of two secured funding facilities.
Management Comments
Bryan Donohoe
Supported by stable commercial real estate fundamentals, we maintained our investment momentum in the first quarter and grew the portfolio with the closing of $294 million of new loan commitments. We remain highly focused on resolving the remaining risk rated 4 and 5 loans and REO properties alongside selectively investing in high quality new loans in order to reshape and grow our portfolio.
Jeff Gonzales
During the first quarter, we maintained our balance sheet flexibility through additional repayments in the loan portfolio, disciplined liquidity and liability management and expanded borrowing capacity. We enhanced our financing structure by increasing the capacity on two of our secured funding facilities by $300 million to support future growth and lowered our borrowing costs through the redemption of the FL4 CLO.
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