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Jun 30, 2022
Ares Commercial Real Estate Q2 2022 Earnings Report
Reported strong earnings driven by investment activity and positive sensitivity of floating rate loans to rising interest rates.
Key Takeaways
Ares Commercial Real Estate Corporation reported GAAP net income of $10.0 million, or $0.20 per diluted common share, and Distributable Earnings of $19.2 million, or $0.38 per diluted common share, for the second quarter of 2022. The company expects to fully cover its regular and supplemental dividends from Distributable Earnings for the full year.
Generated strong earnings driven by incremental investment activity and positive sensitivity of floating rate loans to rising interest rates.
Expect to fully cover regular and supplemental dividends from Distributable Earnings for the full year.
Leverage ratio of 2.4x debt-to-equity as of the second quarter of 2022.
Net interest income should continue to benefit from rising interest rates as 98% of loans are floating rate while 36% of liabilities are fixed rate or hedged.
Forward Guidance
Ares Commercial Real Estate Corporation expects to fully cover its regular and supplemental dividends from its Distributable Earnings for the full year.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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