Ares Commercial Real Estate (ACRE) Q1 2026 earnings summary

Executive summary

• Reported GAAP net loss of $9.6 million, or $(0.17) per diluted share, for Q1 2026, with Distributable Earnings of $3.2 million, or $0.06 per share; excluding a $3.3 million realized loss, Distributable Earnings were $6.5 million, or $0.12 per share.

• Portfolio grew to $1.7 billion across 35 loans, with $294 million in new loan commitments in Q1 2026 and an additional $95 million closed after quarter-end.

• Declared a $0.15 per share dividend for Q2 2026, with an annualized yield of up to 11.5%.

• Strategic focus on reducing risk, including a 25% reduction in office loan exposure and redeployment into industrial, multifamily, retail, and self-storage.

• Active resolution of risk-graded 4 and 5 loans, including exit of a $28 million Pennsylvania multifamily loan, led to a decline in higher-risk loans.

Financial highlights

• Net loss attributable to common stockholders was $(9.6) million for Q1 2026, compared to $9.3 million net income in Q1 2025.

• Distributable earnings were $3.2 million ($0.06 per share), or $6.5 million ($0.12 per share) excluding a $3.3 million realized loss.

• Book value per share was $8.89, including a $138 million CECL reserve; book value excluding CECL reserve was $11.39 per share.

• Net interest margin for Q1 2026 was $7.5 million.

• Repayments on loans held for investment totaled $94 million in Q1 2026.

Outlook and guidance

• Management expects primary sources of cash to be sufficient for operating and investing activities for at least the next 12 months.

• Continued execution on objectives with $95 million in new loan commitments in Q2 2026, focused on multifamily and self-storage.

• Board declared a regular cash dividend of $0.15 per share for Q2 2026.

• Management expects forward originations to be driven by loan repayments and resolution of focus assets.

• All new loan commitments in Q1 2026 were co-investments with other managed funds.