UBS resumed coverage of Ares Commercial with a Neutral rating and $5.50 price target. The recovery across the commercial mortgage real estate investment trust sector has been \"notably bifurcated,\" the analyst tells investors in a research note. The firm says platforms that have resumed meaningful loan origination are trading at 0.85-times book value on average, while those still working through legacy credit resolutions are closer to 0.20-times. UBS expects Ares to maintain its current 15c per quarter dividend despite resolution timeline uncertainty on its two concentrated credit positions.
