Ares Commercial Real Estate reports Q4 earnings below expectations, revenue exceeds expectations

LootboxPhobia · 2026-02-10T15:04:05+00:00

Ares Commercial Real Estate Corporation announced that its Q4 loss exceeded analyst expectations, with a net loss of $-0.07 per share, but revenue of $13.22 million surpassed expectations. The full-year loss was $-0.02 per share, and dividends are expected to remain at $0.15 per share in early 2026. The CEO stated that investment recovery can be expected in the second half of the year.

LootboxPhobia

2026-02-10 15:04:05

Abstract generation in progress

New York - On Tuesday, Ares Commercial Real Estate Corporation (NYSE: ACRE) reported a fourth-quarter loss that did not meet analyst expectations, despite revenue exceeding estimates.

The specialized financial company reported a GAAP net loss of $0.07 per diluted share for Q4 2025, below the analyst estimate of $0.01 loss per share.

The stock remained unchanged in after-hours trading following the earnings announcement.

Total quarterly revenue was $13.22 million, surpassing the consensus estimate of $11.46 million. The company reported distributable earnings of $8.5 million for the quarter, or $0.15 per diluted common share.

For the full year 2025, ACRE reported a GAAP net loss of $0.02 per diluted share, with distributable earnings loss of $0.12 per diluted share.

Ares Commercial Real Estate Corporation CEO Bryan Donohoe stated, “Our progress in strategic objectives for 2025, including addressing risk-rated loans of levels 4 and 5, reducing office and REO properties, and maintaining a flexible balance sheet, has enabled ACRE to resume investing in the second half of 2025.”

The company’s Q4 performance included a $9.84 million expected credit loss reserve, which significantly impacted the bottom line. However, ACRE reported realized gains of $2.76 million from real estate sales during the quarter.

In 2025, ACRE recovered $572 million in loan repayments, which the company said increased its balance sheet flexibility. After the end of the year, the company completed $150 million in new loan commitments.

The board announced a first-quarter 2026 dividend of $0.15 per common share, unchanged from the previous quarter. The dividend will be paid on April 15, 2026, to shareholders of record as of March 31, 2026.

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