ACRE Intrinsic Value – Ares Commercial Real Estate Corp (ACRE) Poised to Rebound in the Real Estate Sector
April 2, 2023
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Ares Commercial Real ($NYSE:ACRE) Estate Corp (ACRE), one of the leading real estate investment trusts in the U.S., has been on a relatively slow decline since the start of the pandemic. After a period of relative stagnation in the real estate industry, Ares is now poised to make a comeback as the economy begins to recover. Ares specializes in lending and investment activities designed to build value for their clients through their extensive network of real estate professionals. They are committed to providing investors with a diverse portfolio of real estate investments that offer stability and long-term growth potential. With their expertise in both the residential and commercial real estate markets, they are well-positioned to take advantage of the potential rebound that is likely to happen as the overall economy recovers. Ares’s portfolio includes a range of real estate investments, ranging from large-scale commercial developments to small residential real estate projects. This portfolio helps them to achieve balanced returns across a variety of markets and provide stability to their investors.
Additionally, Ares has a strong track record of executing transactions successfully, resulting in higher returns for their shareholders. Given Ares’ commitment to delivering values to their investors, it is likely that they will remain at the lower end of the real estate industry. As the economy continues to recover, Ares is well positioned to take full advantage of any potential rebound. With their vast network of real estate professionals and their commitment to providing investors with a diverse portfolio, Ares is certainly one company that investors should be watching in the near future.
Share Price
On Friday, ACRE stock opened at $9.0 and closed at $9.1, which was an increase of 1.8% from its prior closing price of $8.9. This trend indicates that investors are confident in the company’s ability to rebound and make a strong recovery in the near future. With a strong portfolio of assets, experienced management team and commitment to growth, ACRE is well positioned to take advantage of the opportunities in the current market climate. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for ACRE. More…
| Total Revenues | Net Income | Net Margin |
| 109.05 | 29.79 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for ACRE. More…
| Operations | Investing | Financing |
| 57.16 | 193.17 | -159.67 |
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 |
| 2.52k | 1.78k | 13.73 |
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 |
| – | – | – |
Analysis – ACRE Intrinsic Value
At GoodWhale we’ve conducted an analysis of ARES COMMERCIAL REAL ESTATE’s fundamentals. As the current trading price of ARES COMMERCIAL REAL ESTATE stock is at $9.1, this represents a 24.3% undervaluation from fair value. This is a great opportunity for potential investors to buy the stock at a discounted rate. More…
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 Corporation (ACRE) is a real estate investment trust (REIT) that primarily focuses on investing in commercial real estate debt and equity investments. Investing analysis of ACRE has been mixed due to the uncertain economy. On one hand, the company’s portfolio features a diversified mix of loans and investments across multiple real estate sectors and asset classes. On the other hand, the company’s share price has been volatile and has underperformed the real estate sector in recent years.
As such, investors should perform thorough research before investing in ACRE and understand the risks associated with any real estate investments. It is also recommended that investors monitor economic trends and the overall performance of the real estate sector to determine whether ACRE will stay at the bottom of the real estate sector.
