Ares Commercial Real Estate Corporation, a specialty finance company, originates and invests in commercial real estate (CRE) loans and related investments in the United States. More Details
Solid track record and fair value.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: ACRE's weekly volatility (5%) has been stable over the past year.
7 Day Return
US Mortgage REITs
1 Year Return
US Mortgage REITs
Return vs Industry: ACRE exceeded the US Mortgage REITs industry which returned 35.5% over the past year.
Return vs Market: ACRE exceeded the US Market which returned 35.9% over the past year.
Long-Term 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
2 months ago | Simply Wall StShareholders Of Ares Commercial Real Estate (NYSE:ACRE) Must Be Happy With Their 114% Total Return
3 months ago | Simply Wall StHere's What Ares Commercial Real Estate Corporation's (NYSE:ACRE) Shareholder Ownership Structure Looks Like
5 months ago | Simply Wall StAres Commercial Real Estate Corporation (NYSE:ACRE) Insiders Increased Their Holdings
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 ($15.08) is trading below our estimate of fair value ($19.94)
Significantly Below Fair Value: ACRE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ACRE is poor value based on its PE Ratio (8.5x) compared to the US Mortgage REITs industry average (7.6x).
PE vs Market: ACRE is good value based on its PE Ratio (8.5x) compared to the US market (18.1x).
Price to Earnings Growth Ratio
PEG Ratio: ACRE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: ACRE is overvalued based on its PB Ratio (1x) compared to the US Mortgage REITs industry average (0.9x).
How is Ares Commercial Real Estate forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ACRE's earnings are forecast to decline over the next 3 years (-1.9% per year).
Earnings vs Market: ACRE's earnings are forecast to decline over the next 3 years (-1.9% per year).
High Growth Earnings: ACRE's earnings are forecast to decline over the next 3 years.
Revenue vs Market: ACRE's revenue (1.8% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: ACRE's revenue (1.8% 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 (10.1%).
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 (64.8%) are higher than last year (20.1%).
Past Earnings Growth Analysis
Earnings Trend: ACRE's earnings have grown by 6.4% per year over the past 5 years.
Accelerating Growth: ACRE's earnings growth over the past year (459.7%) exceeds its 5-year average (6.4% per year).
Earnings vs Industry: ACRE earnings growth over the past year (459.7%) exceeded the Mortgage REITs industry 49.5%.
Return on Equity
High ROE: ACRE's Return on Equity (9.2%) is considered low.
How is Ares Commercial Real Estate's financial position?
Financial Position Analysis
Short Term Liabilities: ACRE's short term assets ($2.1B) exceed its short term liabilities ($80.3M).
Long Term Liabilities: ACRE's short term assets ($2.1B) exceed its long term liabilities ($1.5B).
Debt to Equity History and Analysis
Debt Level: ACRE's debt to equity ratio (227.9%) is considered high.
Reducing Debt: ACRE's debt to equity ratio has increased from 171.7% to 227.9% over the past 5 years.
Debt Coverage: ACRE's debt is not well covered by operating cash flow (2.4%).
Interest Coverage: Insufficient data to determine if ACRE's interest payments on its debt are well covered by EBIT.
What is Ares Commercial Real Estate current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ACRE's dividend (8.75%) is higher than the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: ACRE's dividend (8.75%) is in the top 25% of dividend payers in the US market (3.55%)
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 9 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (77.1%), ACRE's payments are 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 (101.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Bryan Donohoe (42 yo)
Mr. Bryan Patrick 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 at Ares Commercial Real Estate Co...
Experienced Management: ACRE's management team is considered experienced (2.3 years average tenure).
Experienced Board: ACRE's board of directors are considered experienced (5.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 41.5%.
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$708.787m
- Shares outstanding: 47.00m
- Website: https://www.arescre.com
- Ares Commercial Real Estate Corporation
- 245 Park Avenue
- 42nd Floor
- New York
- New York
- United States
Ares Commercial Real Estate Corporation, a specialty finance company, originates and invests in commercial real estate (CRE) loans and related investments in the United States. It provides a range of finan...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/08/01 22:21|
|End of Day Share Price||2021/07/30 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.