Revenue Breakdown
Composition ()
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Revenue Streams
Ares Commercial Real Estate Corp (ACRE) generates its revenue through a diversified portfolio of business segments. Currently, the largest contributor to its top-line growth is Principal Lending, accounting for 68.1% of total sales, equivalent to $10.22M. Another important revenue stream is Mortgage Banking. Understanding this composition is critical for investors evaluating how ACRE navigates market cycles within the Specialized REITs industry.
Profitability & Margins
Evaluating the bottom line, Ares Commercial Real Estate Corp maintains a gross margin of 40.09%. This metric reflects the company's pricing power and manufacturing efficiency. Further down the income statement, the operating margin stands at 16.10%, while the net margin is 16.10%. These profitability ratios, combined with a Return on Equity (ROE) of -1.42%, provide a clear picture of how effectively ACRE converts its operational activities into shareholder value.
Comparative Benchmarking
In the context of the broader market, ACRE competes directly with industry leaders such as NLOP and BRT. With a market capitalization of $286.14M, it holds a significant position in the sector. When comparing efficiency, ACRE's gross margin of 40.09% stands against NLOP's 89.75% and BRT's 53.58%. Such benchmarking helps identify whether Ares Commercial Real Estate Corp is trading at a premium or discount relative to its financial performance.
