Overview

* Ares Commercial Real Estate ( ACRE ) Q2 net loss of $11.0 mln misses expectations

* Distributable loss of $27.9 mln, or $0.51 per share, in Q2

* Company closed $43 mln of new loan commitments in Q3 2025

Outlook

* Ares Commercial Real Estate ( ACRE ) sees active real estate market for investing

* Company closed $43 mln of senior loan commitments in Q3

* Ares Commercial Real Estate ( ACRE ) has $178 mln available capital for investments

Result Drivers

* PORTFOLIO STRENGTHENING - Co focused on resolving risk-rated loans and reducing office loans, per CEO Bryan Donohoe

* LIQUIDITY IMPROVEMENT - CFO Jeff Gonzales highlights $337 mln repayments collected, enhancing liquidity

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 $5.55

Revenue mln

from

Real

Estate

Owned

Q2 EPS -$0.2

Q2 Net Miss -$11.04 $733,300

Income mln (3

Analysts

)

Q2 Miss -$11.04 -$4.12

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 $5.00, about 9.6% above its August 4 closing price of $4.52

* The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 48 three months ago

Press Release:

(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.)