Ares Commercial Real Estate Corp

Ares Commercial Real Estate Corp reported Q2 2026 GAAP net income of $4.4 million, or $0.08 per diluted common share, and Distributable Earnings of $6.9 million, or $0.12 per diluted common share. The company continued to reposition its portfolio, addressing risk-rated loans and reducing office loans, while closing $130 million in new loan commitments. Management highlighted maintaining balance sheet flexibility with over $100 million in available capital and declared a regular cash dividend of $0.15 per common share for the third quarter.

Ares Commercial Real Estate reported a significant turnaround in its second-quarter 2026 financial results, achieving a net income of $4.38 million, or $0.08 per basic share, compared to a loss in the prior year. Total revenue for the quarter also saw an increase. However, the net loss for the six months ended June 30, 2026, widened to $(5.22) million. The company's loans held for investment, net, grew to $1.61 billion, while its current expected credit loss reserve increased to $(137.81) million. Notably, the company fully repaid its collateralized loan obligation securitization debt.

Ares Commercial Real Estate Corp reported a net loss of $9.61 million for Q1 2026, a significant decline from a net income of $9.35 million in Q1 2025. This was primarily driven by an $11.14 million provision for current expected credit losses and $3.34 million in realized losses on loans, compared to a reversal of $5.34 million in the prior year. Total revenue decreased to $13.46 million from $14.95 million year-over-year. The company's loans held for investment, net of credit loss reserve, increased to $1.49 billion.

Ares Commercial Real Estate Corp reported a GAAP net loss of $(9.6) million or $(0.17) per diluted common share for the first quarter of 2026, alongside Distributable Earnings of $3.2 million or $0.06 per diluted common share. The company declared a Q2 2026 dividend of $0.15 per common share. Operationally, ACRE closed $294 million in new loan commitments, growing its investment portfolio to $1.7 billion, and subsequently closed an additional $95 million in new loan commitments. The company also enhanced its financing structure by increasing borrowing capacity by $300 million and redeemed the FL4 CLO, while reducing risk-rated 4 and 5 loans to $368 million.