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ACRE 
Ares Commercial Real Estate (ACRE)
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Upturn Advisory Summary
12/24/2025: ACRE (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
7 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $4.75
1 Year Target Price $4.75
| 0 | Strong Buy |
| 0 | Buy |
| 5 | Hold |
| 1 | Sell |
| 1 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -29.13% | Avg. Invested days 32 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  1.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 12/24/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 280.08M USD | Price to earnings Ratio - | 1Y Target Price 4.75 |
Price to earnings Ratio - | 1Y Target Price 4.75 | ||
Volume (30-day avg) 7 | Beta 1.3 | 52 Weeks Range 3.15 - 5.64 | Updated Date 12/25/2025 |
52 Weeks Range 3.15 - 5.64 | Updated Date 12/25/2025 | ||
Dividends yield (FY) 13.75% | Basic EPS (TTM) -0.14 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -8.77% | Operating Margin (TTM) 38.63% |
Management Effectiveness
Return on Assets (TTM) -0.46% | Return on Equity (TTM) -1.42% |
Valuation
Trailing PE - | Forward PE 7.34 | Enterprise Value 1004542976 | Price to Sales(TTM) 3.19 |
Enterprise Value 1004542976 | Price to Sales(TTM) 3.19 | ||
Enterprise Value to Revenue 168.08 | Enterprise Value to EBITDA - | Shares Outstanding 55026453 | Shares Floating 54016906 |
Shares Outstanding 55026453 | Shares Floating 54016906 | ||
Percent Insiders 5.8 | Percent Institutions 44.42 |
Upturn AI SWOT
Ares Commercial Real Estate
Company Overview
History and Background
Ares Commercial Real Estate (ACRE) is a real estate investment trust (REIT) that operates as a captive finance company for Ares Management Corporation. It was formed through the merger of Ares Real Estate Income Trust and Ares Commercial Mortgage Opportunities Fund in 2018. ACRE primarily focuses on originating, acquiring, and servicing a diversified portfolio of commercial real estate loans and other debt investments.
Core Business Areas
- CRE Debt Investments: ACRE's core business involves originating and investing in commercial real estate loans across various property types and geographic locations. This includes senior secured loans, mezzanine debt, and preferred equity investments. The company aims to generate attractive risk-adjusted returns through a diversified portfolio.
- Loan Servicing: ACRE also provides loan servicing for its originated and acquired loans. This involves managing loan payments, collections, and borrower relationships, adding an operational revenue stream.
Leadership and Structure
ACRE is managed by Ares Management Corporation, a global alternative asset manager. The day-to-day operations and investment decisions are overseen by a dedicated real estate debt team within Ares Management. The specific leadership team details are often found in SEC filings and investor relations materials.
Top Products and Market Share
Key Offerings
- Commercial Real Estate Loans: [object Object]
- Loan Servicing: [object Object]
Market Dynamics
Industry Overview
The commercial real estate debt market is influenced by interest rate environments, economic growth, property fundamentals (vacancy rates, rental growth), and investor sentiment. The sector is characterized by a mix of traditional lenders and an increasing presence of alternative capital providers.
Positioning
ACRE is positioned as a specialized provider of commercial real estate debt solutions, leveraging the expertise and platform of Ares Management. Its competitive advantages include its focused origination strategy, diversified portfolio approach, and the backing of a large, reputable asset manager.
Total Addressable Market (TAM)
The Total Addressable Market for commercial real estate debt is vast, encompassing billions of dollars in financing needs annually across various property types and stages of the real estate lifecycle. ACRE participates in a significant segment of this market by focusing on middle-market and opportunistic CRE debt opportunities.
Upturn SWOT Analysis
Strengths
- Strong affiliation with Ares Management Corporation providing access to capital and expertise.
- Diversified portfolio of CRE debt investments across property types and geographies.
- Experienced management team with deep industry knowledge.
- Ability to originate and acquire a range of debt instruments.
- Focus on attractive risk-adjusted returns.
Weaknesses
- Reliance on Ares Management for operational and strategic support.
- Sensitivity to interest rate fluctuations and credit market conditions.
- Potential for concentration risk within specific property sectors or geographies.
- Limited public brand recognition compared to larger, diversified REITs.
Opportunities
- Growth in demand for CRE financing, particularly in certain property sectors (e.g., industrial, multi-family).
- Potential for acquisitions to expand its portfolio and capabilities.
- Exploiting dislocation in credit markets to acquire distressed debt at attractive prices.
- Leveraging technological advancements in loan origination and servicing.
Threats
- Rising interest rates increasing borrowing costs and impacting property valuations.
- Economic downturn leading to increased defaults and credit losses.
- Increased competition from other debt providers, potentially compressing yields.
- Regulatory changes impacting the real estate or financial markets.
- Unforeseen events impacting specific property types (e.g., office market challenges).
Competitors and Market Share
Key Competitors
- Starwood Property Trust (STWD)
- Blackstone Real Estate Income Trust (BXMX)
- Apollo Global Management (APO)
Competitive Landscape
ACRE competes in a crowded space with both publicly traded REITs and private debt funds. Its competitive advantages lie in its specialized focus, strong origination capabilities, and the backing of Ares Management. However, it faces challenges from larger, more diversified players with greater scale and access to capital. The ability to originate bespoke debt solutions and navigate complex market conditions is key to its success.
Major Acquisitions
N/A
- Year:
- Acquisition Price (USD millions):
- Strategic Rationale: Specific acquisitions by ACRE itself are less common; rather, it focuses on originating and acquiring individual debt instruments or portfolios of loans.
Growth Trajectory and Initiatives
Historical Growth: ACRE's historical growth would be characterized by the expansion of its debt portfolio through origination and acquisitions, as well as its ability to generate consistent income from its investments. Performance would be tied to market conditions and its strategic deployment of capital.
Future Projections: Future projections for ACRE would depend on analyst estimates concerning market trends, interest rate movements, and the company's ability to execute its growth strategy. Expectations would focus on portfolio expansion, income generation, and dividend sustainability.
Recent Initiatives: Recent initiatives might include strategic capital raises, new loan origination targets, partnerships, or investments in specific real estate debt strategies to enhance returns and expand its market reach.
Summary
Ares Commercial Real Estate (ACRE) is a focused player in the commercial real estate debt market, benefiting from its Ares Management affiliation. Its diversified debt portfolio offers potential for stable income, but it faces risks from interest rate volatility and market downturns. While competitive, ACRE's specialized approach and origination capabilities are key strengths, but it needs to vigilantly manage credit risk and adapt to evolving market dynamics to sustain growth and shareholder returns.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company SEC Filings (10-K, 10-Q)
- Financial Data Aggregators (e.g., Bloomberg, Refinitiv)
- Investor Relations Materials
- Industry Research Reports
Disclaimers:
This JSON output is generated based on publicly available information and AI analysis. It is not a recommendation to buy or sell any security. Investors should conduct their own due diligence and consult with a financial advisor before making investment decisions. Market share data is estimated and may not be precise. Financial performance figures are subject to change and require verification from official sources.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Ares Commercial Real Estate
Exchange NYSE | Headquaters New York, NY, United States | ||
IPO Launch date 2012-04-26 | CEO & Director Mr. Bryan Patrick Donohoe | ||
Sector Real Estate | Industry REIT - Mortgage | Full time employees - | Website https://www.arescre.com |
Full time employees - | Website https://www.arescre.com | ||
Ares Commercial Real Estate Corporation, a specialty finance company, engages in originating and investing in commercial real estate (CRE) loans and related investments in the United States. It provides loan opportunities for the owners, operators, and sponsors of CRE properties. The company's investments includes senior mortgage loans, subordinate debt, preferred equity products, mezzanine loans, and other CRE investments, including commercial mortgage-backed securities. It has elected and qualified to be taxed as a real estate investment trust for the United States federal income tax purposes under the Internal Revenue Code of 1986. Ares Commercial Real Estate Corporation was incorporated in 2011 and is based in New York, New York.
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