NYSE$ACRE

Ares Commercial Real Estate Corporation · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported first quarter results with net income and distributable earnings at $0.34 per diluted common share.

Ares Commercial Real Estate Corporation reported GAAP net income of $16.2 million, or $0.34 per diluted common share, and Distributable Earnings of $16.3 million, or $0.34 per diluted common share, for the first quarter of 2022. The company closed $263 million of new loan commitments during the quarter.

  • First quarter GAAP net income was $16.2 million or $0.34 per diluted common share.
  • Distributable Earnings for the first quarter were $16.3 million or $0.34 per diluted common share.
  • Closed $263 million of new loan commitments in the first quarter.
  • Declared second quarter 2022 dividend of $0.33 per common share and a supplemental dividend of $0.02 per common share.

Headline financials

Total Revenue

$24M

Previous: $21.2M+13.2%
EPS (adj)

$0.34

Previous: $0.40-15.0%
Free Cash Flow

$16.2M

Previous: $15.7M+2.9%
Net Income

$16.2M

Previous: $15.7M+2.9%
Operating Income

$7.58M

Previous: $2.46M+208.9%
Gross Profit

$23.4M

Previous: $18M+30.3%
Cash & Equivalents

$13.8M

Previous: $97.9M-86.0%
Total Assets

$2.52B

Previous: $2.09B+20.3%

Revenue & EPS history

Ares Commercial Real Estate · Revenue · Quarterly

$24M

Q1 2022+13.2%vs Q1 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

The company expects an increase in Distributable Earnings for the second quarter due to an accelerated pace of investments, increased credit spreads, and higher potential base interest rates. ACRE continues to benefit from the scale and global reach of Ares Management’s real estate platform.

Tailwinds

  • Accelerated pace of investments expected.
  • Increased credit spreads anticipated.
  • Higher potential base interest rates expected.
  • Benefits from the scale and global reach of Ares Management’s real estate platform.
  • Earnings are positioned to continue to benefit from potential increases in interest rates given our floating rate loan portfolio combined with the interest rate hedges on our liabilities.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+1.1%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+1.2%

Avg return

30 days after

57%

31 / 54 earnings

Positive

+13.6%

Q1 2025

Best reaction

-12.2%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%-6.9%-4.4%
Q4 2025+11.7%+1.2%-2.9%
Q3 2025+12.5%+9.4%+13.6%
Q1 2025+13.6%+19.9%+16.3%
Q4 2024-12.2%-16.7%-20.4%
Q3 2024+11.6%+7.7%+8.8%
Q2 2024-1.3%-2.4%+0.0%
Q1 2024+0.3%+0.3%+1.7%
Q4 2023-7.3%-11.2%-6.5%
Q3 2023+0.6%+0.5%+6.8%
Q2 2023+1.4%+2.5%-0.7%
Q1 2023-4.1%-5.6%+8.8%
Q4 2022-1.3%-1.9%-25.7%
Q3 2022-7.9%-3.2%-2.8%
Q2 2022-0.4%-3.6%-1.4%
Q1 2022+6.4%+4.5%-0.5%
Q4 2021+3.8%+3.8%+7.0%
Q3 2021-2.2%+1.5%-5.2%
Q2 2021-4.9%-6.3%+1.4%
Q1 2021+1.7%+2.2%+7.7%
Q4 2020+5.0%+4.0%+7.1%
Q3 2020+3.8%+10.8%+27.2%
Q2 2020+6.0%+9.0%+5.3%
Q1 2020-5.3%-16.6%+34.3%
Q4 2019+4.0%-0.9%-64.5%
Q3 2019+0.1%-1.2%+1.3%
Q2 2019+2.1%+1.5%+1.3%
Q1 2019-1.4%-0.8%-3.4%
Q4 2018+7.5%+7.4%+7.9%
Q3 2018+3.9%+3.8%+2.9%
Q2 2018+0.6%+1.4%+3.2%
Q1 2018+6.0%+9.7%+13.0%
Q4 2017+0.0%+0.2%+0.2%
Q3 2017+0.5%-0.4%+3.4%
Q2 2017+1.8%+3.6%+2.9%
Q1 2017-7.0%-6.7%-5.3%
Q4 2016-1.8%-3.7%+0.4%
Q3 2016+0.8%+2.1%+7.0%
Q2 2016+2.9%+2.2%+0.2%
Q1 2016-2.4%
Q4 2015+4.0%
Q3 2015+0.6%
Q2 2015+3.6%
Q1 2015+2.7%
Q4 2014-4.1%
Q3 2014-0.8%
Q2 2014+0.1%
Q1 2014-1.4%
Q4 2013+1.1%
Q3 2013+4.8%
Q2 2013-1.1%
Q1 2013-0.8%
Q4 2012-0.1%
Q2 2012-0.3%

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