ARES COMMERCIAL REAL ESTATE Reports Lower-Than-Expected Earnings and Revenue for Q2 2020

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The company reported a non-GAAP EPS of $0.27, which was lower than the analysts’ expectations of $0.30.

Additionally, revenue of $26.5M was lower than the forecast of $28.26M. ARES ($NYSE:ACRE) is a publicly traded commercial real estate finance company that provides commercial real estate loan originations, asset management services, and loan servicing activities for its portfolio. The company focuses on originating, acquiring, and managing primarily floating-rate senior commercial mortgage loans and other commercial real estate investments that are typically structured with short-term maturities. ARES has a diversified portfolio of investments across a variety of industries and property types, as well as offices located in New York, Los Angeles, Chicago, and Houston.

Price History

This news caused their stock to open at $8.4 and close at $7.9, a 7.7% drop from the prior closing price of 8.5. In response to the news, ARES COMMERCIAL REAL ESTATE has been looking to increase its liquidity and reduce its expenses. The company plans to divest some of its non-core assets, improve its capital structure, and refocus on the core business.

In addition, ARES COMMERCIAL REAL ESTATE has taken steps to improve its corporate governance and strengthen its balance sheet. Overall, ARES COMMERCIAL REAL ESTATE is taking measures to ensure that it can continue to provide quality services to its customers. The company is committed to creating value for its shareholders in the long-term and continuing to be a leader in the commercial real estate market. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for ACRE. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for ACRE. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for ACRE. More…

Key Ratios Snapshot

Some of the financial key ratios for ACRE are shown below. More…

Analysis

GoodWhale has conducted an analysis of ARES COMMERCIAL REAL ESTATE’s wellbeing and the results are quite promising. According to our Star Chart, ARES COMMERCIAL REAL ESTATE is strong in terms of assets, dividends, and growth, and it is medium in terms of profitability. Such a company will likely attract investors who are looking for reliable sources of income and capital preservation. However, ARES COMMERCIAL REAL ESTATE does have a low health score (3/10) when it comes to its cashflows and debt. This suggests that the company may have difficulty in paying off debt and funding future operations. 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

This news caused the stock price to drop the same day, and investors should be cautious when considering investing in the company. It is important to analyze the company’s financial results, management team, and future plans before investing. Investors should also pay attention to the company’s industry trends, customer satisfaction ratings, and competitive landscape.