ACRE dividend – Ares Commercial Real Estate Offers Attractive Investment Opportunity with 13% Dividend Yield
January 9, 2023
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ACRE Stock Intrinsic Value – Ares Commercial Real ($NYSE:ACRE) Estate (ARES) is a real estate investment trust (REIT) that is part of Ares Management, a global alternative asset management business. The company’s portfolio consists of commercial real estate properties, mainly in the retail and office sectors.
In addition, Ares Commercial also provides financing solutions to businesses, as well as owning and operating residential and hospitality properties. Ares Commercial has a strong track record of performance and is well positioned to take advantage of the strong recovery in the U.S. real estate market. The company’s portfolio consists of high-quality assets in attractive locations, providing investors with a diversified income stream. In addition, Ares Commercial offers investors an attractive dividend yield of 13%, making it an attractive opportunity for investors. The company’s dividend is well-covered by its earnings, ensuring that it is sustainable and reliable. The company also has a strong balance sheet and is well-capitalized, providing investors with confidence in its financial stability. The company’s track record of performance and financial strength make it an attractive choice for investors looking for a good return.
Dividends – ACRE dividend
The company has issued a dividend per share of 1.32 USD for FY2022 Q3 as of September 30 2022, which is the same as the dividends issued the previous two years, making it a reliable source of income for investors. Its dividend yields from 2020 to 2022 have been 10.77%, 9.06%, and 8.94%, respectively, giving it an average dividend yield for the three-year period of 9.59%. Its dividend yield is higher than that of many of its peers and with a solid track record of paying consistent dividends, it could be a great addition to any portfolio.
In addition, the company has a strong balance sheet and a low debt-to-equity ratio, making it even more attractive to investors. For investors looking to diversify their portfolios and earn a steady stream of income, this could be a great choice.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for ACRE. More…
| Total Revenues | Net Income | Net Margin |
| 108.75 | 44.03 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for ACRE. More…
| Operations | Investing | Financing |
| 60.14 | -188.56 | 189.93 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for ACRE. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.73k | 1.96k | 14.09 |
Key Ratios Snapshot
Some of the financial key ratios for ACRE are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | – |
| FCF Margin | ROE | ROA |
| – | – | – |
Stock Price
According to market sentiment, the majority of investors are positive about this stock. On Tuesday, ACRE opened at $10.5 and closed at $10.8, representing a 4.6% increase from its previous closing price of $10.3. The investment opportunity offered by ACRE is backed by their sound business model, which includes owning and managing a portfolio of real estate investments through direct originations and acquisitions. ACRE has diversified its portfolio with investments in office buildings, retail centers, industrial properties, and multifamily residential properties. ACRE has also been active in the acquisition of loan portfolios, which further diversifies its portfolio and strengthens its balance sheet.
Over the years, ACRE has strategically managed its portfolio to maximize returns and minimize risks, allowing it to offer such an attractive dividend yield. Given the current market conditions, investors should be encouraged by the performance of ACRE and consider investing in this stock for a high dividend yield. This investment opportunity is expected to continue providing stable returns for the foreseeable future and will be a great addition to any portfolio. Live Quote…
VI Analysis – ACRE Stock Intrinsic Value
Ares Commercial Real Estate Corporation (ARES) is a publicly traded real estate finance company that provides middle-market companies with custom-tailored financing solutions. With the help of VI app, analyzing ARES’s fundamentals is made simple. The intrinsic value of ARES share is estimated to be around $12.3, based on the VI Line analysis. Currently, the stock is trading at $10.8, which is 12% lower than its estimated intrinsic value, indicating a fair price undervalued by 12%. This could potentially be a great opportunity for investors to buy the stock at a discount. The company has maintained healthy financials with a strong balance sheet and low leverage. Overall, ARES appears to be an attractive investment option for long-term investors looking for an undervalued stock that offers an attractive dividend yield. The company’s strong fundamentals, low leverage, and consistent dividend increases provide a solid foundation for long-term growth. More…
VI Peers
The company has a strong focus on providing financing for middle-market borrowers. Ares Commercial Real Estate Corp is a publicly traded company that is listed on the New York Stock Exchange. The company has a market capitalization of approximately $2.3 billion. Ares Commercial Real Estate Corp is headquartered in New York, New York. The company’s main competitors are TPG RE Finance Trust Inc, KKR Real Estate Finance Trust Inc, and ACRES Commercial Realty Corp.
– TPG RE Finance Trust Inc ($NYSE:TRTX)
TPG RE Finance Trust Inc has a market cap of 623.1M as of 2022. The company focuses on originating and acquiring first mortgage loans secured by properties located in the United States.
– KKR Real Estate Finance Trust Inc ($NYSE:KREF)
KKR Real Estate Finance Trust Inc. is a real estate finance company that originates, acquires, and manages a diversified portfolio of commercial mortgage loans, commercial mortgage-backed securities, and other commercial real estate-related debt investments. The company has a market cap of $1.15 billion as of 2022.
– ACRES Commercial Realty Corp ($NYSE:ACR)
Acres Commercial Realty Corp is a company that owns and operates commercial real estate properties. The company has a market capitalization of $79.25 million as of 2022. Acres Commercial Realty Corp’s primary business is the ownership and operation of office buildings, retail centers, and warehouses. The company’s portfolio is located in the United States and Canada.
Summary
Ares Commercial Real Estate (ACRE) is offering an attractive investment opportunity with a 13% dividend yield at the time of writing. Media sentiment is mostly positive, and the stock price has risen following the announcement. Investors considering this opportunity should conduct a thorough analysis of the company’s financials, including its dividend history, current portfolio of investments, and future prospects.
Additionally, investors should review the risks associated with investing, such as potential changes in the real estate market and potential changes in the company’s dividend payout policy. Overall, Ares Commercial Real Estate offers a potential high return on investment, but careful due diligence is advised.
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