Ares Commercial Real Estate Corporation Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-06
Ares Commercial Real Estate Corporation Reports Second Quarter 2024 Financial Results
Ares Commercial Real Estate Corporation (NYSE:ACRE), a specialty finance company engaged in originating and investing in commercial real estate assets, reported its financial results for the second quarter of 2024.
Key Financial Metrics
| Metric | Q2 2024 | Consensus Estimates |
|---|---|---|
| Total Revenue | $18.82M | $18.82M |
| GAAP Net Income (Loss) | $(6.1)M | N/A |
| Earnings Per Share (EPS) | $(0.11) | $0.12 |
| Distributable Earnings | $(6.6)M | N/A |
| Distributable EPS | $(0.12) | N/A |
In Q2 2024, Ares Commercial Real Estate Corporation reported GAAP net income (loss) of $(6.1) million or $(0.11) per diluted share and Distributable Earnings (Loss) of $(6.6) million or $(0.12) per diluted share, falling short of the consensus EPS estimate of $0.12 for the quarter. The company experienced a challenging quarter, yet management believes that recent strategic measures will better position ACRE for future growth.
Revenue Performance by Segment
| Segment | Q2 2024 Revenue |
|---|---|
| Commercial Real Estate Loans | $18.82M |
Management did not provide a detailed segment breakdown of revenue. Therefore, only the overall revenue figure of $18.82 million is reported.
Management Comments
"We continued to make progress on resolving risk rated 4 and 5 loans and maintaining financial flexibility," said Bryan Donohoe, CEO. "While these measures impacted our second quarter financial results, we believe these actions better position the company for higher levels of portfolio growth and earnings in the future."
Leadership Appointments
- Tae-Sik Yoon appointed as Chief Operating Officer.
- Jeff Gonzales appointed as Chief Financial Officer and Treasurer, effective August 30, 2024.
Dividend Announcements
- Second Quarter Dividend : Declared a cash dividend of $0.25 per common share, paid on July 16, 2024.
- Third Quarter Dividend : Declared a cash dividend of $0.25 per common share, to be paid on October 15, 2024.
Stock Price Movement
Following the earnings release, Ares Commercial Real Estate Corporation saw its stock price increase by approximately 3.23%.
For more detailed information, interested parties can join the company's conference call and webcast on August 6, 2024, at 12:00 p.m. Eastern Time.
Overall, while ACRE faced a challenging quarter, the strategic moves announced and the leadership appointments are expected to better position the company for future growth and improved earnings.