NYSE$ACRE

Ares Commercial Real Estate Corporation · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported strong earnings driven by investment activity and positive sensitivity of floating rate loans to rising interest rates.

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.

Headline financials

Total Revenue

$25.1M

Previous: $23.5M+6.9%
EPS (adj)

$0.38

Previous: $0.37+2.7%
Free Cash Flow

$10M

Previous: $17.6M-43.1%
Net Income

$10M

Previous: $17.6M-43.1%
Operating Income

-$895K

Previous: -$370K-141.9%
Gross Profit

$18M

Previous: $16.4M+9.5%
Cash & Equivalents

$25.6M

Previous: $75.7M-66.1%
Total Assets

$2.7B

Previous: $2.26B+19.5%

Revenue & EPS history

Ares Commercial Real Estate · Revenue · Quarterly

$25.1M

Q2 2022+6.9%vs Q2 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

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

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro