Ares Commercial Real Estate Corporation, a specialty finance company, originates and invests in commercial real estate loans and related investments in the United States.
Good value with acceptable track record.
Share Price & News
How has Ares Commercial Real Estate's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ACRE has not had significant price volatility in the past 3 months.
7 Day Return
US Mortgage REITs
1 Year Return
US Mortgage REITs
Return vs Industry: ACRE exceeded the US Mortgage REITs industry which returned 8.4% over the past year.
Return vs Market: ACRE underperformed the US Market which returned 19.3% over the past year.
Price Volatility Vs. Market
How volatile is Ares Commercial Real Estate's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall StHow Many Ares Commercial Real Estate Corporation (NYSE:ACRE) Shares Do Institutions Own?
1 month ago | Simply Wall StIntroducing Ares Commercial Real Estate (NYSE:ACRE), A Stock That Climbed 31% In The Last Five Years
2 months ago | Simply Wall StHere's Why I Think Ares Commercial Real Estate (NYSE:ACRE) Might Deserve Your Attention Today
Is Ares Commercial Real Estate undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ACRE ($17.62) is trading below our estimate of fair value ($26.4)
Significantly Below Fair Value: ACRE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ACRE is good value based on its PE Ratio (13.5x) compared to the Mortgage REITs industry average (13.5x).
PE vs Market: ACRE is good value based on its PE Ratio (13.5x) compared to the US market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: ACRE is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: ACRE is overvalued based on its PB Ratio (1.2x) compared to the US Mortgage REITs industry average (1.1x).
How is Ares Commercial Real Estate forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ACRE's forecast earnings growth (11.2% per year) is above the savings rate (1.7%).
Earnings vs Market: ACRE's earnings (11.2% per year) are forecast to grow slower than the US market (14.2% per year).
High Growth Earnings: ACRE's earnings are forecast to grow, but not significantly.
Revenue vs Market: ACRE's revenue (4.4% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: ACRE's revenue (4.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ACRE's Return on Equity is forecast to be low in 3 years time (8.7%).
How has Ares Commercial Real Estate performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ACRE has high quality earnings.
Growing Profit Margin: ACRE's current net profit margins (53.6%) are lower than last year (67.3%).
Past Earnings Growth Analysis
Earnings Trend: ACRE's earnings have grown by 11.1% per year over the past 5 years.
Accelerating Growth: ACRE's earnings growth over the past year (7.5%) is below its 5-year average (11.1% per year).
Earnings vs Industry: ACRE earnings growth over the past year (7.5%) exceeded the Mortgage REITs industry 7.3%.
Return on Equity
High ROE: ACRE's Return on Equity (8.8%) is considered low.
Return on Assets
Return on Capital Employed
How is Ares Commercial Real Estate's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Inventory Level: ACRE has a low level of unsold assets or inventory.
Debt Coverage by Assets: ACRE's debt is covered by short term assets (assets are 1.3x debt).
Financial Institutions Analysis
Asset Level: ACRE's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if ACRE has a sufficient allowance for bad loans.
Low Risk Liabilities: ACRE reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if ACRE has an acceptable proportion of non-loan assets held.
Low Risk Deposits: ACRE has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if ACRE has an appropriate level of bad loans.
What is Ares Commercial Real Estate's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ACRE's dividend (7.49%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: ACRE's dividend (7.49%) is in the top 25% of dividend payers in the US market (3.71%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, ACRE has been paying a dividend for less than 10 years.
Growing Dividend: ACRE's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (99.5%), ACRE's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ACRE's dividends in 3 years are not forecast to be well covered by earnings (98.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Bryan Donohoe 0
Mr. Bryan Donohoe serves as Partner and Head of Real Estate Debt of Ares Real Estate Group at Ares Management Corporation since 2019. He is Chief Executive Officer and Partner at Ares Commercial Real Estat ...
|CFO & Treasurer||7.6yrs||US$755.60k||0.23% $1.3m|
|Partner & CEO||0.2yrs||no data||no data|
|President||0.6yrs||no data||no data|
|Chief Accounting Officer||6yrs||no data||no data|
|Partner/Head of Public Investor Relations & Communications||0yrs||no data||no data|
|Investor Relations Contact||0yrs||no data||no data|
|General Counsel||1.1yrs||no data||0.050% $292.0k|
|Principal of Ares Public Investor Relations & Corporate Communications Group||0yrs||no data||no data|
|VP & Assistant Secretary||0yrs||no data||no data|
|Principal||5.6yrs||no data||no data|
Experienced Management: ACRE's management team is considered experienced (3.3 years average tenure).
|Director||8.4yrs||no data||1.06% $6.2m|
|Chairman of the Board||2yrs||no data||0.056% $328.2k|
|Independent Director||3.8yrs||US$135.00k||0.093% $542.0k|
|Independent Director||3.8yrs||US$124.00k||0.098% $575.7k|
|Independent Director||1.8yrs||US$162.00k||0.040% $236.4k|
|Lead Independent Director||0yrs||US$135.00k||0.075% $438.1k|
|Independent Director||6yrs||US$137.00k||0.054% $317.3k|
Experienced Board: ACRE's board of directors are considered experienced (3.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ACRE insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Ares Commercial Real Estate Corporation's company bio, employee growth, exchange listings and data sources
- Name: Ares Commercial Real Estate Corporation
- Ticker: ACRE
- Exchange: NYSE
- Founded: 2011
- Industry: Mortgage REITs
- Sector: Diversified Financials
- Market Cap: US$585.272m
- Shares outstanding: 33.10m
- Website: https://www.arescre.com
- Ares Commercial Real Estate Corporation
- 245 Park Avenue
- 42nd Floor
- New York
- New York
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|ACRE||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Apr 2012|
|41I||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Apr 2012|
Ares Commercial Real Estate Corporation, a specialty finance company, originates and invests in commercial real estate loans and related investments in the United States. It provides a range of financing solutions for the owners, operators, and sponsors of commercial real estate (CRE) properties. The company originates senior mortgage loans, subordinate debt products, real estate preferred equity investments, mezzanine loans, and other CRE investments. Ares Commercial Real Estate Corporation has elected and qualified to be taxed as a real estate investment trust for the United States federal income tax purposes under the Internal Revenue Code of 1986. Ares Commercial Real Estate Management LLC operates as the manager of the company. The company was founded in 2011 and is headquartered in New York, New York.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/22 02:10|
|End of Day Share Price||2020/02/21 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.