New York, November 6th / PRNewswire / -- Ares Commercial Real Estate Corporation (hereinafter referred to as the "Company") ( NYSE : ACRE ) announced that this professional financial company, which is mainly engaged in commercial real estate loans and related investment initiatives and investments, achieved a net profit of $10 million in the third quarter of 2026, which is $0.18 per diluted share; the distributable earnings were $6.7 million, which is $0.12 per diluted share.
The company's CEO, Bryan Donohoe, stated: "In the third quarter, we continued to advance our strategic focus on reducing investments in office buildings and REO. The sale of REO office properties and the resulting revenue are evidence of this. At the same time, our diversified loan portfolio remains stable overall, thanks to the strength of the Ares real estate debt platform and its broad market coverage."
The company's Chief Financial Officer, Jeff Gonzales, stated: "We continue to focus on managing loans with risk ratings of 4 and 5, as resolving these investments will drive the repositioning of our portfolio and enhance future profitability. As a demonstration of our commitment to continuously implementing strategic priorities and confidence in future earnings potential, the board of directors has announced a regular cash dividend of $0.15 per common share for the fourth quarter of 2026."
Common stock dividends
On August 4, 2026, the company's board of directors announced that it would distribute a regular cash dividend of $0.15 per share for the third quarter of 2026 to common stockholders registered as of September 30, 2026. The dividend was paid on October 15, 2026.
On November 6, 2026, the company's board of directors announced that it would distribute a regular cash dividend of $0.15 per share for the fourth quarter of 2026 to common stockholders registered as of December 31, 2026. The dividend will be paid on January 15, 2027.
Additional information
The company has released its performance presentation for the third quarter of 2026, which can be viewed on the company's website at www.arescre.com on the homepage, under the " Investor Resources " section, in the " Events and Presentations " subsection. The title of the document is " Third Quarter 2026 Earnings Presentation ".
Teleconference and live webcast information
The company invites all interested individuals to join a webcast/teleconference on Friday, November 6, 2026, at 10:00 a.m. Eastern Time in the United States, to discuss the financial results for the third quarter of 2026.
Interested participants can join via telephone or online live broadcast. The live broadcast link is located on the company's website at www.arescre.com on the " Investor Resources " section of the homepage. The company recommends testing your internet connection before the live broadcast. For calls from within the United States, the number is +1 (833) 354-6854, and for international calls, it is +1 (785) 838-9343. The password is ACREQ326. The company asks all callers to dial 10 to 15 minutes in advance to allow for the collection of names and company information. Those interested can also listen to the recording of the teleconference before 5:00 PM Eastern Time on December 6, 2026; the playback number for calls from within the United States is +1 (800) 753-6121, and for international calls, it is +1 (402) 220-2676. The online live broadcast recording can also be viewed through the live broadcast link on the " Investor Resources " section of the company's homepage before December 6, 2026.
About Ares Commercial Real Estate Corporation
Ares Commercial Real Estate Corporation is a professional financial company that primarily engages in the direct initiation and investment of commercial real estate loans and related investments. Through its nationwide direct initiation platform, the company provides a wide range of flexible and reliable financing solutions for commercial real estate owners and operators. The company invests in whole loan and mezzanine mortgages, as well as in subordinated financing, mezzanine debt, and preferred equity, with a focus on providing value-added financing for various properties in markets with strong liquidity across the United States. Ares Commercial Real Estate Corporation has chosen to qualify for taxation as a Real Estate Investment Trust (REIT) (REIT) and is externally managed by a subsidiary of Ares Management Corporation. For more information, please visit www.arescre.com. The content of this website is not, and should not be considered as, incorporated into this text.
Forward-looking Statements
The statements contained in this document or during the teleconference/webcast may constitute “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934 as amended. These statements relate to future events or the company’s future performance or financial condition, including but not limited to potential earnings, possible reductions in office space and REO investments, resolution of underperforming loans, increased investment activities, liquidity management, reductions or increases in CECL reserves, reductions or increases in available borrowings, and the industry and loan markets, among others. These statements do not guarantee future performance, conditions, or results, and involve various risks and uncertainties.Actual results may vary significantly from forward-looking statements due to a variety of factors, including global economic trends and conditions (including slowdown in growth), changes in fiscal and monetary policies, inflation, labor shortages, interest rate changes, foreign exchange fluctuations, and uncertainties arising from tariffs and trade disputes, as well as geopolitical instability, changes in interest rates and credit spreads, management's estimates of current expected credit losses and provisions, the scale of commercial mortgage loans that require refinancing, demand for commercial real estate loans, a company's anticipated investment capacity and available capital, declines in the default rate or recovery rate of target investments, the company's business and investment strategies, the company's projected operating results, Ares Commercial Real Estate Management LLC ("ACREM" or the company's "managers")'s ability to find suitable investments for the company, the ability to monitor, service, and manage the company's investments and implement investment strategies, and the risks described from time to time in the documents submitted by the company to the U.S. Securities and Exchange Commission ("SEC"). These include, but are not limited to, the risks mentioned in item 1A of "Risk Factors" in Part I of the 10-K annual report submitted by the company to SEC on February 10, 2026. Any forward-looking statements, including those contained herein, represent only the views as of the date of this press release, and Ares Commercial Real Estate Corporation assumes no obligation to update this document or any forward-looking statements made during the teleconference/webcast. Predictions and forward-looking statements are based on assumptions that are reasonable and made in good faith by management, including the assumptions stated herein.
Investor Relations Contact Person
Ares Commercial Real Estate Corporation
Carl Drake or John Stilmar
(888) 818-5298
iracre @ aresmgmt.com
Appendix I
Adjustment between net profit (loss) and non-GAAP distributable income (loss). Distributable income (loss) is a non-GAAP financial indicator used to help companies assess their financial performance by excluding the impact of certain transactions and GAAP adjustments, as the company believes these impacts may not necessarily reflect its current loan portfolio and operational conditions. To maintain REIT eligibility, companies are generally required to distribute most of their taxable income to shareholders each year. The company believes that disclosing distributable income (loss) provides useful information to investors, helping them understand the company's ability to pay dividends, which is also a major reason for investors to invest in the company. This supplementary information should not be considered in isolation nor should it replace the financial results prepared in accordance with GAAP. Distributable income (loss) is defined as net profit (loss) calculated in accordance with GAAP and attributable to common stockholders, after deducting non-cash equity compensation expenses, incentive fees paid by the company to managers, depreciation and amortization (in cases where the company's target investments are structured as debt and the company forecloses on the related properties), any unrealized gains, losses, or other non-cash items included in the current period's net profit (loss), whether or not these items are included in other comprehensive income or losses, one-time events arising from GAAP changes, and certain non-cash expenses approved by the majority of independent directors after discussion with the company's management and independent directors. Loan balances deemed uncollectible will be written off as realized losses and included in distributable income (loss). Distributable income (loss) is consistent with the "core income" definition used in the Management Agreement to calculate the incentive fees paid by the company to managers.
For the three-month and twelve-month periods ending September 30, 2026, the net profit (loss) attributable to common stockholders, adjusted against the most directly comparable GAAP financial indicator of distributable earnings (loss), is presented in the table below (unit: thousand US dollars).
