Overview

* Ares Commercial Q3 net income of $4.7 mln beats analyst expectations

* Company declared Q4 dividend of $0.15 per share

* Closed $271 mln of new loan commitments after Q3

Outlook

* Company anticipates additional repayments will enhance liquidity and support increased investment activity

* Ares Commercial Real Estate ( ACRE ) aims to accelerate investing activity with new loan commitments

Result Drivers

* LOAN REPAYMENTS - CFO Jeff Gonzales states $500 mln of repayments year-to-date have bolstered liquidity

* INVESTMENT ACTIVITY - CEO Bryan Donohoe highlights $360 mln of new loan commitments as part of portfolio repositioning

* RISK MANAGEMENT - CEO Bryan Donohoe mentions addressing risk rated 4 and 5 loans and reducing office loans to strengthen financial flexibility

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 $5.63

Revenue mln

from

Real

Estate

Owned

Q3 EPS $0.08

Q3 Net Beat $4.65 $1.90

Income mln mln (5

Analysts

)

Q3 Beat $4.65 -$1.35

Pretax mln mln (3

Profit Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"

* The average consensus recommendation for the specialized reits peer group is "buy."

* Wall Street's median 12-month price target for Ares Commercial Real Estate Corp ( ACRE ) is $4.50, about 0.2% below its November 6 closing price of $4.49

* The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)