Loading...

Ares Commercial Real Estate

NYSE:ACRE
Snowflake Description

Acceptable track record second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ACRE
NYSE
$435M
Market Cap
  1. Home
  2. US
  3. Diversified Financials
Company description

Ares Commercial Real Estate Corporation, a specialty finance company, originates and invests in commercial real estate loans and related investments in the United States. The last earnings update was 48 days ago. More info.


Add to Portfolio Compare Print
ACRE Share Price and Events
7 Day Returns
1%
NYSE:ACRE
0.9%
US Mortgage REITs
0.3%
US Market
1 Year Returns
9.2%
NYSE:ACRE
-7%
US Mortgage REITs
0.7%
US Market
ACRE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ares Commercial Real Estate (ACRE) 1% 1.5% -0.6% 9.2% 23.7% 20.1%
US Mortgage REITs 0.9% -1.6% -4.4% -7% 0.7% -14.4%
US Market 0.3% 0.4% 0.6% 0.7% 37.2% 37.4%
1 Year Return vs Industry and Market
  • ACRE outperformed the Mortgage REITs industry which returned -7% over the past year.
  • ACRE outperformed the Market in United States of America which returned 0.7% over the past year.
Price Volatility
ACRE
Industry
5yr Volatility vs Market

Value

 Is Ares Commercial Real Estate undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Ares Commercial Real Estate to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Ares Commercial Real Estate.

NYSE:ACRE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 4 analysts.
= Stable Book Value * Return on Equity
= $14.64 * 9%
$1.32
Book Value of Equity per Share Weighted future Book Value estimates from 3 analysts. $14.64
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:ACRE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Mortgage REITs Unlevered Beta Simply Wall St/ S&P Global 0.27
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.275 (1 + (1- 21%) (269.74%))
0.907
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.91
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.907 * 5.96%)
8.13%

Discounted Cash Flow Calculation for NYSE:ACRE using Excess Returns Model Model

The calculations below outline how an intrinsic value for Ares Commercial Real Estate is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:ACRE Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (9% – 8.13%) * $14.64)
$0.12
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.12 / (8.13% - 2.73%)
$2.31
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $14.64 + $2.31
$16.95
NYSE:ACRE Discount to Share Price
Calculation Result
Value per share (USD) From above. $16.95
Current discount Discount to share price of $15.20
= -1 x ($15.20 - $16.95) / $16.95
10.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Ares Commercial Real Estate is available for.
Intrinsic value
10%
Share price is $15.2 vs Future cash flow value of $16.95
Current Discount Checks
For Ares Commercial Real Estate to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Ares Commercial Real Estate's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Ares Commercial Real Estate's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Ares Commercial Real Estate's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ares Commercial Real Estate's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:ACRE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.32
NYSE:ACRE Share Price ** NYSE (2019-06-17) in USD $15.2
United States of America Mortgage REITs Industry PE Ratio Median Figure of 23 Publicly-Listed Mortgage REITs Companies 12.89x
United States of America Market PE Ratio Median Figure of 3,093 Publicly-Listed Companies 17.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Ares Commercial Real Estate.

NYSE:ACRE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:ACRE Share Price ÷ EPS (both in USD)

= 15.2 ÷ 1.32

11.47x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ares Commercial Real Estate is good value based on earnings compared to the US Mortgage REITs industry average.
  • Ares Commercial Real Estate is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Ares Commercial Real Estate's expected growth come at a high price?
Raw Data
NYSE:ACRE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.47x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
9.6%per year
United States of America Mortgage REITs Industry PEG Ratio Median Figure of 21 Publicly-Listed Mortgage REITs Companies 1.2x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NYSE:ACRE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.47x ÷ 9.6%

1.19x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ares Commercial Real Estate is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Ares Commercial Real Estate's assets?
Raw Data
NYSE:ACRE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $14.88
NYSE:ACRE Share Price * NYSE (2019-06-17) in USD $15.2
United States of America Mortgage REITs Industry PB Ratio Median Figure of 37 Publicly-Listed Mortgage REITs Companies 0.94x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.79x
NYSE:ACRE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:ACRE Share Price ÷ Book Value per Share (both in USD)

= 15.2 ÷ 14.88

1.02x

* Primary Listing of Ares Commercial Real Estate.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ares Commercial Real Estate is overvalued based on assets compared to the US Mortgage REITs industry average.
X
Value checks
We assess Ares Commercial Real Estate's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Mortgage REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Mortgage REITs industry average (and greater than 0)? (1 check)
  5. Ares Commercial Real Estate has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Ares Commercial Real Estate expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ares Commercial Real Estate expected to grow at an attractive rate?
  • Ares Commercial Real Estate's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Ares Commercial Real Estate's earnings growth is positive but not above the United States of America market average.
  • Ares Commercial Real Estate's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:ACRE Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:ACRE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 9.6%
NYSE:ACRE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 1.4%
United States of America Mortgage REITs Industry Earnings Growth Rate Market Cap Weighted Average 40.7%
United States of America Mortgage REITs Industry Revenue Growth Rate Market Cap Weighted Average 26.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.8%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:ACRE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:ACRE Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 59 48 2
2020-12-31 59 42 5
2019-12-31 58 38 5
NYSE:ACRE Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 56 36 38
2018-12-31 55 39 39
2018-09-30 52 36 35
2018-06-30 52 36 36
2018-03-31 49 35 33
2017-12-31 46 31 30
2017-09-30 48 36 32
2017-06-30 45 -8 28
2017-03-31 45 1 27
2016-12-31 45 17 26
2016-09-30 45 73 25
2016-06-30 45 87 25

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ares Commercial Real Estate's earnings are expected to grow by 9.6% yearly, however this is not considered high growth (20% yearly).
  • Ares Commercial Real Estate's revenue is expected to grow by 1.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:ACRE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Ares Commercial Real Estate Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ACRE Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.25 1.35 1.16 2.00
2020-12-31 1.31 1.37 1.21 5.00
2019-12-31 1.29 1.36 1.20 5.00
NYSE:ACRE Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.32
2018-12-31 1.35
2018-09-30 1.22
2018-06-30 1.26
2018-03-31 1.17
2017-12-31 1.07
2017-09-30 1.13
2017-06-30 0.97
2017-03-31 0.95
2016-12-31 0.91
2016-09-30 0.87
2016-06-30 0.87

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Ares Commercial Real Estate is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Ares Commercial Real Estate's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Ares Commercial Real Estate has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Ares Commercial Real Estate performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Ares Commercial Real Estate's growth in the last year to its industry (Mortgage REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Ares Commercial Real Estate's year on year earnings growth rate has been positive over the past 5 years.
  • Ares Commercial Real Estate's 1-year earnings growth exceeds its 5-year average (13.7% vs 11.9%)
  • Ares Commercial Real Estate's earnings growth has not exceeded the US Mortgage REITs industry average in the past year (13.7% vs 13.7%).
Earnings and Revenue History
Ares Commercial Real Estate's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Ares Commercial Real Estate Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ACRE Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 56.30 37.82 16.33
2018-12-31 55.28 38.60 16.24
2018-09-30 51.63 34.76 15.67
2018-06-30 52.37 35.86 15.49
2018-03-31 49.15 33.27 14.92
2017-12-31 46.35 30.41 14.97
2017-09-30 48.09 32.29 14.91
2017-06-30 45.12 27.61 15.21
2017-03-31 45.22 26.90 14.76
2016-12-31 45.11 25.92 14.43
2016-09-30 44.95 24.76 13.92
2016-06-30 45.43 24.79 13.50
2016-03-31 47.23 25.57 13.51
2015-12-31 50.00 27.30 13.67
2015-09-30 60.44 29.29 21.24
2015-06-30 62.89 26.99 27.76
2015-03-31 68.70 26.84 34.88
2014-12-31 37.54 22.53 13.73
2014-09-30 63.05 18.79 39.22
2014-06-30 60.10 21.57 35.11
2014-03-31 46.68 18.19 27.22
2013-12-31 34.73 13.77 20.19
2013-09-30 23.64 11.56 13.03
2013-06-30 13.39 4.12 9.15
2013-03-31 9.88 0.63 8.07
2012-12-31 6.72 0.19 5.76

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Ares Commercial Real Estate has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Ares Commercial Real Estate used its assets more efficiently than the US Mortgage REITs industry average last year based on Return on Assets.
  • Unable to establish if Ares Commercial Real Estate improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Ares Commercial Real Estate's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Mortgage REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Ares Commercial Real Estate has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Ares Commercial Real Estate's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Ares Commercial Real Estate's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ares Commercial Real Estate is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Ares Commercial Real Estate's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Ares Commercial Real Estate's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Ares Commercial Real Estate Company Filings, last reported 2 months ago.

NYSE:ACRE Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 425.10 1,172.29 12.81
2018-12-31 425.59 1,157.06 11.09
2018-09-30 424.16 1,291.90 5.03
2018-06-30 422.20 1,379.99 5.05
2018-03-31 420.71 1,308.64 5.20
2017-12-31 419.17 1,336.77 28.34
2017-09-30 420.50 1,152.95 28.25
2017-06-30 416.98 1,231.61 5.72
2017-03-31 417.89 997.23 44.40
2016-12-31 429.67 930.59 47.27
2016-09-30 465.27 1,086.16 41.77
2016-06-30 454.30 776.66 5.31
2016-03-31 454.00 927.04 15.72
2015-12-31 456.49 846.88 5.07
2015-09-30 491.62 963.08 19.75
2015-06-30 489.15 1,011.80 14.14
2015-03-31 487.16 1,055.02 15.88
2014-12-31 480.89 1,338.14 19.75
2014-09-30 401.04 955.65 12.32
2014-06-30 403.84 969.39 21.91
2014-03-31 404.09 804.76 31.75
2013-12-31 406.22 727.76 24.13
2013-09-30 410.65 377.65 17.27
2013-06-30 394.88 168.82 40.24
2013-03-31 163.58 269.68 22.55
2012-12-31 165.44 213.37 23.39
  • Ares Commercial Real Estate's level of debt (275.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (199.6% vs 275.8% today).
  • Debt is not well covered by operating cash flow (3.1%, less than 20% of total debt).
  • Unable to confirm if the interest payments on Ares Commercial Real Estate's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Ares Commercial Real Estate's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ares Commercial Real Estate has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Ares Commercial Real Estate's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
8.68%
Current annual income from Ares Commercial Real Estate dividends. Estimated to be 8.72% next year.
If you bought $2,000 of Ares Commercial Real Estate shares you are expected to receive $174 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Ares Commercial Real Estate's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Ares Commercial Real Estate's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).
Upcoming dividend payment

Purchase Ares Commercial Real Estate before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:ACRE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America Mortgage REITs Industry Average Dividend Yield Market Cap Weighted Average of 37 Stocks 10.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:ACRE Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.32 2.00
2020-12-31 1.33 5.00
2019-12-31 1.32 5.00
NYSE:ACRE Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-01 1.320 8.804
2019-02-21 1.320 8.650
2018-10-30 1.160 8.259
2018-05-01 1.120 8.025
2018-03-05 1.120 9.033
2018-03-01 1.120 9.113
2017-11-01 1.080 8.351
2017-08-03 1.080 8.148
2017-05-02 1.080 8.211
2017-03-07 1.080 8.038
2016-11-03 1.040 7.653
2016-05-05 1.040 8.380
2016-03-01 1.040 9.407
2015-11-05 1.000 8.925
2015-07-30 1.000 8.030
2015-05-07 1.000 8.535
2014-11-10 1.000 8.530
2014-08-06 1.000 8.241
2014-05-07 1.000 7.981
2013-11-13 1.000 7.583
2013-08-07 1.000 7.918
2013-05-15 1.000 7.046
2013-03-14 1.000 5.992
2012-11-07 1.000 5.982
2012-09-21 0.240 1.419
2012-06-19 0.240 1.419
2012-06-01 1.200 6.959

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Ares Commercial Real Estate has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Ares Commercial Real Estate only paid a dividend in the past 7 years.
Current Payout to shareholders
What portion of Ares Commercial Real Estate's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (1x coverage).
X
Income/ dividend checks
We assess Ares Commercial Real Estate's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Ares Commercial Real Estate afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ares Commercial Real Estate has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Ares Commercial Real Estate's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jamie Henderson
COMPENSATION $559,600
AGE 48
TENURE AS CEO 1.7 years
CEO Bio

Mr. James Alan Henderson, also known as Jamie, has been the President and Chief Investment Officer at Ares Commercial Real Estate Corporation since April 27, 2017. Mr. Henderson has been a Partner and Head of Real Estate Debt at Ares Management Corporation since April 2017. He serves as Chief Investment Officer of Alternative Investments at Barings Real Estate Advisers LLC. He heads Cornerstone's Alternative Investments Group where he has responsibility for a national platform focused on raising and deploying client capital into illiquid and less liquid high yield debt investments, to include levered bridge lending strategies, mezzanine debt and preferred equity. His focus includes strategic investment opportunities and development and distribution of private equity investment funds. He has more than 15 years in commercial and residential real estate with an extensive background across originations, portfolio management and capital raising. He served as the Head of Structured Real Estate Investments at Barings. Prior to joining the Barings in 2010 and its affiliate Babson Capital Management LLC in 2005, he was a Partner. He served as a Partner of Barings LLC. He served as Vice President of Development at Oldcastle/CRH where he focused on the acquisition and repositioning of mid-market operating companies. He served six years as an officer in the United States Navy. Mr. Henderson earned an MBA in Finance from Duke University Fuqua School of Business in year 2000-2002 and a BS degree in Political Science and Government from the United States Naval Academy in year 1989-1993.

CEO Compensation
  • Jamie's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jamie's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Ares Commercial Real Estate management team in years:

4.9
Average Tenure
48
Average Age
  • The tenure for the Ares Commercial Real Estate management team is about average.
Management Team

Jamie Henderson

TITLE
President
COMPENSATION
$560K
AGE
48
TENURE
1.7 yrs

Tae-Sik Yoon

TITLE
CFO & Treasurer
COMPENSATION
$756K
AGE
51
TENURE
6.9 yrs

Don Haisch

TITLE
Chief Accounting Officer
TENURE
5.3 yrs

Carl Drake

TITLE
Partner/Head of Public Investor Relations & Communications

Michele Brancati

TITLE
Investor Relations Contact

Anton Feingold

TITLE
General Counsel
AGE
37
TENURE
0.4 yrs

Veronica Mendiola Mayer

TITLE
Vice President of Public Investor Relations & Communications

Keith Kooper

TITLE
VP & Assistant Secretary

James Mosier

TITLE
Principal
TENURE
4.9 yrs

John Stilmar

TITLE
Managing Director
Board of Directors Tenure

Average tenure and age of the Ares Commercial Real Estate board of directors in years:

3.2
Average Tenure
60
Average Age
  • The tenure for the Ares Commercial Real Estate board of directors is about average.
Board of Directors

Bill Benjamin

TITLE
Chairman of the Board
AGE
53
TENURE
1.3 yrs

Jamie Henderson

TITLE
President
COMPENSATION
$560K
AGE
48
TENURE
1.7 yrs

Caroline Blakely

TITLE
Lead Independent Director
COMPENSATION
$135K
AGE
63

Bill Browning

TITLE
Director
COMPENSATION
$137K
AGE
64
TENURE
5.3 yrs

James Skinner

TITLE
Director
COMPENSATION
$135K
AGE
65
TENURE
3.2 yrs

Mike Arougheti

TITLE
Director
AGE
46
TENURE
7.8 yrs

Rand April

TITLE
Director
COMPENSATION
$124K
AGE
67
TENURE
3.2 yrs

Ed Moriarty

TITLE
Independent Director
COMPENSATION
$162K
AGE
57
TENURE
1.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
15. Mar 19 Buy Rand April Individual 13. Mar 19 13. Mar 19 9,730 $15.42 $149,996
08. Mar 19 Buy William Benjamin Individual 06. Mar 19 06. Mar 19 3,300 $15.16 $50,039
14. Dec 18 Sell James Henderson Individual 12. Dec 18 12. Dec 18 -13,618 $14.23 $-193,784
X
Management checks
We assess Ares Commercial Real Estate's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Ares Commercial Real Estate has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should Ares Commercial Real Estate (NYSE:ACRE) Be Disappointed With Their 26% Profit?

For example, the Ares Commercial Real Estate Corporation (NYSE:ACRE) share price return of 26% over three years lags the market return in the same period. … During three years of share price growth, Ares Commercial Real Estate achieved compound earnings per share growth of 14% per year. … We note that for Ares Commercial Real Estate the TSR over the last 3 years was 62%, which is better than the share price return mentioned above.

Simply Wall St -

I Built A List Of Growing Companies And Ares Commercial Real Estate (NYSE:ACRE) Made The Cut

How Quickly Is Ares Commercial Real Estate Increasing Earnings Per Share. … Not all of Ares Commercial Real Estate's revenue this year is revenue from operations, so keep in mind the revenue and margin numbers I've used might not be the best representation of the underlying business. … While we note Ares Commercial Real Estate's EBIT margins were flat over the last year, revenue grew by a solid 15% to US$56m.

Simply Wall St -

What Kind Of Shareholders Own Ares Commercial Real Estate Corporation (NYSE:ACRE)?

If you want to know who really controls Ares Commercial Real Estate Corporation (NYSE:ACRE), then you'll have to look at the makeup of its share registry. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … With a market capitalization of US$440m, Ares Commercial Real Estate is a small cap stock, so it might not be well known by many institutional investors.

Simply Wall St -

How Do Analysts See Ares Commercial Real Estate Corporation (NYSE:ACRE) Performing In The Years Ahead?

In December 2018, Ares Commercial Real Estate Corporation (NYSE:ACRE) released its most recent earnings announcement, whicha

Simply Wall St -

What Do Analysts Think About Ares Commercial Real Estate Corporation's (NYSE:ACRE) Future?

Help shape the future of investing tools and receive a $20 prize! … On 31 December 2018, Ares Commercial Real Estate Corporation (NYSE:ACRE) released its most recent earnings update.

Simply Wall St -

What Should We Expect From Ares Commercial Real Estate Corporation's (NYSE:ACRE) Earnings In The Year Ahead?

On 30 September 2018, Ares Commercial Real Estate Corporation (NYSE:ACRE) released its earnings update. … as a 8.6% rise in profits is expected in the upcoming year, … the higher past 5-year average growth rate of 14%.

Simply Wall St -

Should You Invest In The Real Estate Sector And Ares Commercial Real Estate Corporation (NYSE:ACRE)?

Ares Commercial Real Estate Corporation (NYSE:ACRE), a US$398.25m. … is a real estate company operating in an industry … Real estate investment trust, or a REIT, is a collective vehicle for investing in real estate that began in the US and has since been adopted worldwide as an investment asset

Simply Wall St -

Ares Commercial Real Estate Corporation (NYSE:ACRE): Ex-Dividend Is In 1 Days, Should You Buy?

Shares of Ares Commercial Real Estate Corporation (NYSE:ACRE) will begin trading ex-dividend in 1 days. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Ares Commercial Real Estate's latest financial data to analyse its dividend attributes. … View out our latest analysis for Ares Commercial Real Estate

Simply Wall St -

What Should We Expect From Ares Commercial Real Estate Corporation's (NYSE:ACRE) Earnings Over The Next Few Years?

The latest earnings update Ares Commercial Real Estate Corporation's (NYSE:ACRE) released in December 2017 showed that the business gained from a robust tailwind, eventuating to a double-digit earnings growth of 17.32%. … Below, I've laid out key growth figures on how market analysts predict Ares Commercial Real Estate's earnings growth trajectory over the next few years and whether the future looks even brighter than the past. … Check out our latest analysis for Ares Commercial Real Estate Market analysts' prospects for the upcoming year seems positive, with earnings increasing by a robust 12.92%.

Simply Wall St -

Is It Time To Sell Ares Commercial Real Estate Corporation (NYSE:ACRE) Based Off Its PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for ACRE Price per share = $12.5 Earnings per share = $1.134 ∴ Price-Earnings Ratio = $12.5 ÷ $1.134 = 11x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … Ultimately, our goal is to compare the stock’s P/E ratio to the average of companies that have similar attributes to ACRE, such as company lifetime and products sold. … Alternatively, if you inadvertently compared riskier firms with ACRE, ACRE’s P/E would again be higher since investors would reward ACRE’s lower risk with a higher price as well.

Simply Wall St -

Company Info

Description

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.

Details
Name: Ares Commercial Real Estate Corporation
ACRE
Exchange: NYSE
Founded: 2011
$434,605,118
28,592,442
Website: http://www.arescre.com
Address: Ares Commercial Real Estate Corporation
245 Park Avenue,
42nd Floor,
New York,
New York, 10167,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE ACRE Common Stock New York Stock Exchange US USD 26. Apr 2012
Number of employees
Current staff
Staff numbers
0
Ares Commercial Real Estate employees.
Industry
Mortgage REITs
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/18 00:41
End of day share price update: 2019/06/17 00:00
Last estimates confirmation: 2019/06/13
Last earnings filing: 2019/05/01
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.