📊 ACRE Key Takeaways
Is Ares Commercial Real Estate Corp (ACRE) a Good Investment?
ACRE exhibits severe operational distress with -$9.6M net loss despite 69% revenue growth, indicating unprofitable operations and poor quality growth. Negative operating cash flow of -$56.6M combined with excessive leverage (2.58x Debt/Equity) and only $86.2M cash reserves creates critical financial strain.
Ares Commercial Real Estate Corp shows strong top-line growth and solid operating/free cash flow generation, which supports near-term balance sheet flexibility and portfolio cash earnings. However, the latest period still shows slightly negative operating and net income, very weak returns on assets and equity, and a highly leveraged capital structure, which limits the quality of the growth. Fundamentally, this looks stable but not strong enough to justify a bullish view until profitability becomes consistently positive.
Ares Commercial Real Estate Corp Key Strengths (ACRE)
- Revenue growing 69.1% YoY demonstrating top-line expansion recovery
- Maintaining $86.2M cash for near-term obligations and operations
- Total assets of $1.8B provide underlying collateral base for real estate holdings
- Revenue grew 69.1% year over year, indicating a meaningful rebound in core income generation
- Operating cash flow of $21.35M and free cash flow of $21.26M suggest the business is still producing cash despite weak accounting earnings
- Equity of $509.57M provides a tangible capital base relative to $1.62B in total assets
ACRE Stock Risks: Ares Commercial Real Estate Corp Investment Risks
- Deeply negative operating cash flow of -$56.6M indicates company is burning cash at unsustainable rate
- Excessive leverage at 2.58x Debt/Equity with $1.3B debt significantly exceeds equity cushion amid persistent losses
- Severe negative margins (-71% operating, -71% net) demonstrate fundamental profitability failure despite revenue growth
- Operating margin of -1.1% and net margin of -1.6% show the company is not currently converting revenue into accounting profit
- Debt/equity of 1.86x and long-term debt of $948.18M create elevated balance sheet risk for a commercial real estate lender
- Cash of $29.29M is modest relative to liabilities of $1.11B, reducing liquidity cushion if credit conditions worsen
Key Metrics to Watch
- Operating cash flow trend - critical inflection needed to turn positive for viability
- Debt service coverage ratio and refinancing capability with negative cash generation
- Timeline to operating profitability - revenue growth is hollow without margin improvement
- Net interest income and net income trend to confirm whether revenue growth is translating into durable profitability
- Leverage, liquidity, and non-accrual or impaired loan levels to assess balance sheet risk and credit quality
Ares Commercial Real Estate Corp (ACRE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
ACRE Profit Margin, ROE & Profitability Analysis
ACRE vs Real Estate Sector: How Ares Commercial Real Estate Corp Compares
How Ares Commercial Real Estate Corp compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Ares Commercial Real Estate Corp Stock Overvalued? ACRE Valuation Analysis 2026
Based on fundamental analysis, Ares Commercial Real Estate Corp shows some fundamental concerns relative to the Real Estate sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Ares Commercial Real Estate Corp Balance Sheet: ACRE Debt, Cash & Liquidity
ACRE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Ares Commercial Real Estate Corp's revenue has remained relatively flat over the 5-year period, with a 9% decline. The most recent EPS of $-0.72 indicates the company is currently unprofitable.
ACRE Revenue Growth, EPS Growth & YoY Performance
ACRE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $13.5M | -$3.9M | $0.17 |
| Q3 2025 | $14.1M | $3.0M | $0.05 |
| Q2 2025 | $12.6M | -$1.7M | $-0.03 |
| Q1 2025 | $14.9M | -$5.9M | $0.17 |
| Q3 2024 | $16.7M | $546.0K | $0.01 |
| Q2 2024 | $16.8M | -$2.2M | $-0.04 |
| Q1 2024 | $18.7M | -$2.2M | $-0.12 |
| Q3 2023 | $23.9M | $546.0K | $0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Ares Commercial Real Estate Corp Dividends, Buybacks & Capital Allocation
ACRE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Ares Commercial Real Estate Corp (CIK: 0001529377)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ACRE
What is the AI rating for ACRE?
Ares Commercial Real Estate Corp (ACRE) has a Combined AI Grade of C from Claude (D) and ChatGPT (B) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ACRE's key strengths?
Claude: Revenue growing 69.1% YoY demonstrating top-line expansion recovery. Maintaining $86.2M cash for near-term obligations and operations. ChatGPT: Revenue grew 69.1% year over year, indicating a meaningful rebound in core income generation. Operating cash flow of $21.35M and free cash flow of $21.26M suggest the business is still producing cash despite weak accounting earnings.
What are the risks of investing in ACRE?
Claude: Deeply negative operating cash flow of -$56.6M indicates company is burning cash at unsustainable rate. Excessive leverage at 2.58x Debt/Equity with $1.3B debt significantly exceeds equity cushion amid persistent losses. ChatGPT: Operating margin of -1.1% and net margin of -1.6% show the company is not currently converting revenue into accounting profit. Debt/equity of 1.86x and long-term debt of $948.18M create elevated balance sheet risk for a commercial real estate lender.
What is ACRE's revenue and growth?
Ares Commercial Real Estate Corp reported revenue of $13.5M.
Does ACRE pay dividends?
Ares Commercial Real Estate Corp pays dividends, with $8.4M distributed to shareholders in the trailing twelve months.
Where can I find ACRE SEC filings?
Official SEC filings for Ares Commercial Real Estate Corp (CIK: 0001529377) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ACRE's EPS?
Ares Commercial Real Estate Corp has a diluted EPS of $1.35.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ACRE's fundamental grade?
Based on our AI fundamental analysis in June 2026, Ares Commercial Real Estate Corp has a C grade with 77% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ACRE stock overvalued or undervalued?
Valuation metrics for ACRE: ROE of -2.0% (sector avg: 8%), net margin of -71.4% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
What is ACRE's AI grade for 2026?
Our dual AI analysis gives Ares Commercial Real Estate Corp a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ACRE's free cash flow?
Ares Commercial Real Estate Corp's operating cash flow is $-56.6M, with capital expenditures of $90.0K. FCF margin is -421.2%.
How does ACRE compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin -71.4% (avg: 20%), ROE -2.0% (avg: 8%), current ratio N/A (avg: 1.5).
Is Ares Commercial Real Estate Corp carrying too much debt?
ACRE has a debt-to-equity ratio of 2.58x, which is above the Real Estate sector average of 1.5x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.