NYSE$ACRE

Ares Commercial Real Estate Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported a GAAP net loss and Distributable Earnings, with Distributable Earnings per diluted common share fully covering the regular and supplemental dividends for the quarter.

Ares Commercial Real Estate Corporation reported a GAAP net loss of $2.2 million, or $0.04 per diluted common share, and Distributable Earnings of $19.0 million, or $0.35 per diluted common share, for the second quarter of 2023. The company bought back approximately 1.0% of its outstanding common shares at an average price of $8.58 per common share during the quarter.

  • GAAP net loss was $2.2 million, or $0.04 per diluted common share.
  • Distributable Earnings were $19.0 million, or $0.35 per diluted common share.
  • The Board of Directors declared a regular cash dividend of $0.33 per common share for the third quarter of 2023.
  • Company repurchased approximately 1.0% of its outstanding common shares during the second quarter of 2023.

Headline financials

Total Revenue

$25M

Previous: $25.1M-0.6%
EPS (adj)

$0.35

Previous: $0.38-7.9%
Dividends declared per share of common stock

$0.35

No prior period
Free Cash Flow

-$2.2M

Previous: $10M-121.9%
Net Income

-$2.2M

Previous: $10M-121.9%
Operating Income

-$46.3M

Previous: -$895K-5075.8%
Gross Profit

-$16.2M

Previous: $18M-189.9%
Cash & Equivalents

$143M

Previous: $25.6M+456.5%
Total Assets

$2.4B

Previous: $2.7B-11.0%

Revenue & EPS history

Ares Commercial Real Estate · Revenue · Quarterly

$25M

Q2 2023-0.6%vs Q2 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

Management believes that repurchasing common shares at meaningful discounts to book value and new loan originations will be better uses of capital than the previously distributed supplemental dividends.

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 2023

Historical avgQ2 2023

+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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