NYSE$ACRE

Ares Commercial Real Estate Corporation · Q2 2025 earnings

Q2 2025 earnings · · Before market open · Investor relations

Briefing

Ares Commercial Real Estate Corporation reported Q2 2025 results with a net loss driven by a realized loss on loan payoff.

The company posted total revenue of $12.6 million for the quarter, including $7.0 million in net interest margin and $5.5 million from real estate owned. A $33.0 million realized loss on a loan payoff and reversal of credit loss provisions resulted in a net loss of $11.0 million or $0.20 per share. The loan portfolio declined to $1.3 billion as repayments exceeded originations.

  • Net interest margin fell to $7.0 million from $13.4 million year-over-year due to lower earning assets and SOFR rates.
  • Realized loss of $33.0 million on discounted payoff of Massachusetts office loan contributed to quarterly net loss.
  • CECL reserve reversal of $20.2 million partially offset the impact of the realized loss.
  • Dividends declared at $0.15 per share; cash and cash equivalents rose to $90.0 million.

Headline financials

Total Revenue

$12.6M

Previous: $16.8M-25.2%
EPS (adj)

-$0.20

Previous: -$0.11-81.8%
Dividends Declared Per Share

$0.15

No prior period
Net Interest Margin

$7.02M

No prior period
Total Expenses

$10.8M

No prior period
Interest Expense

$16.1M

No prior period
Management Fees to Affiliate

$2.43M

No prior period
Professional Fees

$673K

No prior period
G&A Expenses

$2M

No prior period
G&A Reimbursed to Affiliate

$1.02M

No prior period
Expenses from REO

$4.63M

No prior period
Realized Loss on Loan

-$33M

No prior period
CECL Reversal, Net

$20.2M

No prior period
Interest Income

$23.1M

No prior period
Net Income

-$11M

Previous: -$6.13M-80.2%
Operating Income

-$33.4M

Previous: -$39.7M+15.7%
Cash & Equivalents

$90M

No prior period
Total Assets

$1.44B

No prior period

Revenue & EPS history

Ares Commercial Real Estate · Revenue · Quarterly

$12.6M

Q2 2025-25.2%vs Q2 2024
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Forward guidance

Management continues to monitor macroeconomic conditions including tariffs, inflation and interest rates for impacts on borrowers and portfolio performance.

Historical earnings impact

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

Avg. return before/after earnings

Based on 19 quarterly earnings reports

Historical avg

+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
Q2 2025
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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