Ares Comml Real Est (NYSE:ACRE) Stock

Ares Comml Real Est

Ares Commercial Real Estate Corp is a specialty finance company and a Real Estate Investment Trust providing commercial real estate loans and related investments. It operates in one segment namely originating and managing a diversified portfolio of CRE debt-related investments. The group recognizes its revenues through the interest income it receives from loans.

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Mortgage Applications Dip As Rates Climb: &#39;It Is Still Cheaper To Rent Than Purchase For 82 Out Of 97 Major Cities&#39;

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Ares Commercial Real Estate Corporation Common Stock

Ares Commercial Real Estate Corp

ACRES Commercial Realty Corp. Common Stock

ACRES Commercial Realty Corp

ACRES Commercial Realty Corp. 8.625% Fixed-to-Floating Series C Cumulative Redeemable Preferred Stock

ACRES Commercial Realty Corp. 7.875% Series D Cumulative Redeemable Preferred Stock

Acreage Holdings Inc Ordinary Shares Class D (Sub Voting)

Acreage Holdings Inc Ordinary Shares Class E (Sub Voting)

UBS analyst Douglas Harter maintains Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) with a Neutral and lowers the price target from $6 to $5.25.

Price Target

Analyst Ratings

UBS Maintains Neutral on Ares Comml Real Est, Lowers Price Target to $5.25

In the latest quarter, 4 analysts provided ratings for Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>), showcasing a mix of bullish and bearish perspectives.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">4</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
Analysts have set 12-month price targets for Ares Comml Real Est, revealing an average target of $5.75, a high estimate of $6.00, and a low estimate of $5.50. Experiencing a 11.54% decline, the current average is now lower than the previous average price target of $6.50. 
<img src="https://www.benzinga.com/files/images/story/2025/1739484082_0.png" alt="price target chart" />
<h2>Interpreting Analyst Ratings: A Closer Look</h2>
The standing of Ares Comml Real Est among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Richard Shane</td>
<td>JP Morgan</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$5.50</td>
<td>$6.00</td>
</tr>
<tr>
<td>Jade Rahmani</td>
<td>Keefe, Bruyette &amp; Woods</td>
<td>Lowers</td>
<td>Market Perform</td>
<td>$5.50</td>
<td>$6.00</td>
</tr>
<tr>
<td>Richard Shane</td>
<td>JP Morgan</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$6.00</td>
<td>$7.00</td>
</tr>
<tr>
<td>Jade Rahmani</td>
<td>Keefe, Bruyette &amp; Woods</td>
<td>Lowers</td>
<td>Market Perform</td>
<td>$6.00</td>
<td>$7.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Ares Comml Real Est. This offers insight into analysts' perspectives on the current state of the company.</li>
<li>Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Ares Comml Real Est compared to the broader market.</li>
<li>Price Targets: Delving into movements, analysts provide estimates for the future value of Ares Comml Real Est's stock. This analysis reveals shifts in analysts' expectations over time.</li>
</ul>
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Ares Comml Real Est's market standing. Stay informed and make well-considered decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/ACRE/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Ares Comml Real Est analyst ratings.</a>
If you are interested in following small-cap stock news and performance <a href="https://www.benzinga.com/news/small-cap">you can start by tracking it here</a>.
<h2>Delving into Ares Comml Real Est's Background</h2>
Ares Commercial Real Estate Corp is a specialty finance company and a Real Estate Investment Trust providing commercial real estate loans and related investments. It operates in one segment namely originating and managing a diversified portfolio of CRE debt-related investments. The group recognizes its revenues through the interest income it receives from loans.
<h3>Ares Comml Real Est: Financial Performance Dissected</h3>
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Revenue Challenges: Ares Comml Real Est's revenue growth over 3 months faced difficulties. As of 30 September, 2024, the company experienced a decline of approximately -42.69%. This indicates a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.
Net Margin: Ares Comml Real Est's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -54.01%, the company may face hurdles in effective cost management.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -1.03%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -0.29%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: Ares Comml Real Est's debt-to-equity ratio is below the industry average at 2.38, reflecting a lower dependency on debt financing and a more conservative financial approach.
<h2>The Basics of Analyst Ratings</h2>
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter. 
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
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Deep Dive Into Ares Comml Real Est Stock: Analyst Perspectives (4 Ratings)

JP Morgan analyst Richard Shane maintains Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) with a Neutral and lowers the price target from $6 to $5.5.

JP Morgan Maintains Neutral on Ares Comml Real Est, Lowers Price Target to $5.5

Keefe, Bruyette &amp; Woods analyst Jade Rahmani maintains Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) with a Market Perform and lowers the price target from $6 to $5.5.

Keefe, Bruyette & Woods Maintains Market Perform on Ares Comml Real Est, Lowers Price Target to $5.5

JMP Securities analyst Chris Muller reiterates Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) from Market Perform to Market Perform.

Reiteration

JMP Securities Reiterates Market Perform on Ares Comml Real Estto Market Perform

WIIM

Ares Commercial Real Estate shares are trading lower after the company reported worse-than-expected Q4 adjusted EPS results and announced a quarterly dividend cut from $0.25 per share to $0.15.

Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) reported quarterly losses of $(0.15) per share which missed the analyst consensus estimate of $0.02 by 850 percent. This is a 175 percent decrease over earnings of $0.20 per share from the same period last year. The company reported quarterly sales of $17.51 million which beat the analyst consensus estimate of $15.52 million by 12.83 percent. This is a 0.24 percent decrease over sales of $17.55 million the same period last year.

Earnings

Earnings Beats

Earnings Misses

Ares Comml Real Est Q4 Adj EPS $(0.15) Misses $0.02 Estimate, Sales $17.51M Beat $15.52M Estimate

The first quarter 2025 dividend will be payable on April 15, 2025 to common stockholders of record as of March 31, 2025.
The company has elected to lower its quarterly dividend to $0.15 per share as earnings during the year are expected to be impacted by more flexible balance sheet position.

Dividends

Ares Commercial Real Estate Cuts Quarterly Cash Dividend From $0.25 To $0.15 Per Share

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Earnings Scheduled For February 12, 2025

JP Morgan analyst Richard Shane maintains Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) with a Neutral and lowers the price target from $7 to $6.

JP Morgan Maintains Neutral on Ares Comml Real Est, Lowers Price Target to $6

Keefe, Bruyette &amp; Woods analyst Jade Rahmani maintains Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) with a Market Perform and lowers the price target from $7 to $6.

Keefe, Bruyette & Woods Maintains Market Perform on Ares Comml Real Est, Lowers Price Target to $6

The U.S. mortgage market hit a speed bump last week as rising interest rates pushed application activity lower, breaking a <a href="https://www.benzinga.com/news/econ-s#:~:text=Econ%20%23s%20Recent%20News&amp;text=Markets%20are%20fully%20priced%20in,impact%20monetary%20policy%20for%202025.&amp;text=US%20private%20sector%20ended%202024,Manufacturing%20sector%20still%20in%20contraction.">five-week streak of growth.</a>
According to the Mortgage Bankers Association (MBA), total mortgage applications decreased 0.7% for the week ending Dec. 13, 2024, signaling persistent challenges for buyers and homeowners navigating high-rate environments.
The average interest rate for 30-year fixed-rate mortgages on conforming loan balances — up to $766,550 — rose from 6.67% to 6.75%, snapping three consecutive weeks of marginal declines.
"Mortgage rates increased last week, leading to overall mortgage application activity decreasing for the first time in five weeks,&#8221; said Joel Kan, MBA's vice president and deputy chief economist.
&#8220;Buyers remained active in the purchase market, helped by gradually improving inventory conditions and a more positive outlook on the economy and job market,&#8221; he added.
The Mortgage Refinance Index fell 3% from the previous week, but still remained 41% higher than the same period in 2023. VA refinance applications plunged 17%, offsetting gains seen in prior weeks.
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Loan Type</th>
<th>Avg. Rate (%)</th>
<th>Change (bps)</th>
<th>Points</th>
</tr>
</thead>
<tbody>
<tr>
<td>30-Year Fixed (Conforming)</td>
<td>6.75%</td>
<td>+8</td>
<td>0.66</td>
</tr>
<tr>
<td>30-Year Fixed (Jumbo)</td>
<td>6.86%</td>
<td>+7</td>
<td>0.61</td>
</tr>
<tr>
<td>30-Year Fixed (FHA)</td>
<td>6.49%</td>
<td>+2</td>
<td>0.79</td>
</tr>
<tr>
<td>15-Year Fixed</td>
<td>6.15%</td>
<td>+3</td>
<td>0.71</td>
</tr>
<tr>
<td>5/1 Adjustable-Rate Mortgage</td>
<td>6.03%</td>
<td>+22</td>
<td>0.48</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Source: MBA</figcaption></figure>
<h3 class="wp-block-heading">Housing Affordability: Renting vs. Owning</h3>
Mortgage rates remain near 7%, while home prices have risen in all 97 major U.S. cities. 
Bank of America examined the rent-versus-buy dilemma in 97 U.S. cities in a note to clients on Wednesday.
The result? In places like San Francisco, Los Angeles, and San Jose, mortgage payments now account for a staggering 60-70% of median family income, making renting the clear budget-friendly option, according to the investment bank. 
&#8220;Regionally, it is still cheaper to rent than purchase for 82 out of 97 major cities in the US,&#8221; analyst Jeseo Park wrote. 
New Orleans, Pittsburgh, and El Paso are among the cities where it&#8217;s cheaper to own than rent.
"The housing market is still stuck between high mortgage rates and low inventories," said Park. 
"We've seen some relief with the Federal Reserve starting to ease monetary policy, but rates are unlikely to fall dramatically in the near term. Buyers should expect only mild improvements next year," she added. 
With the mortgage spread hovering around 2-2.5 percentage points and Bank of America analysts forecasting a 10-year yield of 4.25% in 2025, mortgage rates are expected to stay around 6-6.5% next year. 
&#8220;Given that many homeowners locked in low rates during Covid, a mortgage rate above 6% would still be too high to promote significant activity,&#8221; Park stated. 
<h2 class="wp-block-heading">Market Reactions</h2>
The iShares Residential and Multisector Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REZ#NYSE">REZ</a>) edged up 0.1% on Wednesday, following twelve losses in the past thirteen sessions.
The VanEck Mortgage REIT Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MORT#NYSE">MORT</a>) climbed 0.5%, recovering from a 1.3% decline on Tuesday.
Stocks within the industry saw minimal movement as markets adopted a cautious, wait-and-see stance ahead of the upcoming Federal Reserve meeting.
Hannon Armstrong Sustainable Infrastructure Capital Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HASI#NYSE">HASI</a>) and New York Mortgage Trust, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NYMT#NYSE">NYMT</a>) were among the top gainers in the MORT ETF, rising 1.8% and 1.2%, respectively. Meanwhile, Ares Commercial Real Estate Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) was among the laggards, slipping 0.9%.
Now Read: 
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<li><a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42554114/all-eyes-on-december-fed-meeting-as-traders-await-interest-rate-projections">All Eyes On December Fed Meeting As Traders Await Interest Rate Projections</a></li>
</ul>
Image: Shutterstock

Mortgage Applications Dip As Rates Climb: 'It Is Still Cheaper To Rent Than Purchase For 82 Out Of 97 Major Cities'

JMP Securities analyst Steven Delaney reiterates Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) from Market Perform to Market Perform.

Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) reported quarterly earnings of $0.07 per share which beat the analyst consensus estimate of $0.04 by 75 percent. This is a 72 percent decrease over earnings of $0.25 per share from the same period last year. The company reported quarterly sales of $16.653 million which missed the analyst consensus estimate of $16.738 million by 0.51 percent. This is a 30.27 percent decrease over sales of $23.883 million the same period last year.

Ares Comml Real Est Q3 2024 Adj. EPS $0.07 Beats $0.04 Estimate, Sales $16.653M Miss $16.738M Estimate

JP Morgan analyst Richard Shane maintains Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) with a Neutral and lowers the price target from $7 to $6.5.

JP Morgan Maintains Neutral on Ares Comml Real Est, Lowers Price Target to $6.5

Wells Fargo analyst Donald Fandetti downgrades Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) from Equal-Weight to Underweight and lowers the price target from $7.5 to $7.

Downgrades

Wells Fargo Downgrades Ares Comml Real Est to Underweight, Lowers Price Target to $7

Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) reported quarterly losses of $(0.12) per share which missed the analyst consensus estimate of $0.12 by 200 percent. The company reported quarterly sales of $16.797 million which missed the analyst consensus estimate of $18.823 million by 10.77 percent. This is a 32.79 percent decrease over sales of $24.990 million the same period last year.

Ares Comml Real Est Q2 2024 Adj. EPS $(0.12) Misses $0.12 Estimate, Sales $16.797M Miss $18.823M Estimate

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Shares of companies within the broader financial sector are trading lower amid overall weakness following concerns about recently issued US economic data.

BTIG analyst Thomas Catherwood assumes Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) with a Neutral rating.

Initiation

BTIG Assumes Ares Comml Real Est at Neutral

Keefe, Bruyette &amp; Woods analyst Jade Rahmani maintains Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) with a Market Perform and lowers the price target from $7.5 to $7.

Keefe, Bruyette & Woods Maintains Market Perform on Ares Comml Real Est, Lowers Price Target to $7

Press Releases

Ares Commercial Real Estate Corporation Schedules Earnings Release and Conference Call for the First Quarter Ended March 31, 2024

Ares Commercial Real Estate Corporation Reports First Quarter 2024 Results

Ares Commercial Real Estate Corporation Schedules Earnings Release and Conference Call  for the Second Quarter Ended June 30, 2024

Ares Commercial Real Estate Corporation Reports Second Quarter 2024 Results

Ares Commercial Real Estate Corporation Schedules Earnings Release and Conference Call for the Third Quarter Ended September 30, 2024

Ares Commercial Real Estate Corporation Reports Third Quarter 2024 Results

KBW Announces Index Rebalancing for Fourth-Quarter 2024

Ares Commercial Real Estate Corporation Announces Tax Reporting Information for Calendar Year 2024

Ares Commercial Real Estate Corporation Schedules Earnings Release and Conference Call for the Fourth Quarter and Full Year Ended December 31, 2024

Ares Commercial Real Estate Corporation Reports Fourth Quarter and Full Year 2024 Results

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