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Dec 31, 2025
Ares Commercial Real Estate Q4 2025 Earnings Report
Ares Commercial Real Estate Corporation reported its fourth quarter and full year 2025 financial results, with GAAP net income (loss) of $(3.9) million and Distributable Earnings of $8.5 million for the quarter.
Key Takeaways
Ares Commercial Real Estate Corporation (ACRE) reported a GAAP net income loss of $(3.9) million, or $(0.07) per diluted common share, for the fourth quarter of 2025. Despite the GAAP loss, the company achieved Distributable Earnings of $8.5 million, or $0.15 per diluted common share, indicating a stronger operational performance from a non-GAAP perspective. The company also closed $150 million of new loan commitments subsequent to year-end and declared a first quarter 2026 dividend of $0.15 per common share.
Fourth quarter GAAP net income (loss) was $(3.9) million, or $(0.07) per diluted common share.
Distributable Earnings for the fourth quarter were $8.5 million, or $0.15 per diluted common share.
Subsequent to year-end, the company closed $150 million of new loan commitments.
A first quarter 2026 dividend of $0.15 per common share was declared.
Revenue by Segment
Forward Guidance
Ares Commercial Real Estate Corporation is focused on achieving strategic objectives in 2026, including addressing risk-rated loans, reducing office and REO properties, and maintaining a flexible balance sheet to drive earnings growth. The company plans to continue optimizing its financing structure to support future growth.
Positive Outlook
- Focused on repositioning the portfolio to drive earnings growth.
- Collected $572 million in loan repayments during 2025, increasing balance sheet flexibility.
- Continuing to optimize financing structure by increasing availability and reducing borrowing costs.
- Strategic goals include addressing risk rated 4 and 5 loans and reducing office and REO properties.
- Returned to investing in the second half of 2025 due to advancements in strategic goals.
Challenges Ahead
- Actual results may differ materially from forward-looking statements due to various factors.
- Risks include high inflation, slower growth, and changes to fiscal and monetary policy.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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