Ares Commercial Real Estate (ACRE) Q2 2026 earnings summary

Executive summary

• GAAP net income for Q2 2026 was $4.4 million ($0.08 per diluted share), with distributable earnings of $6.9 million ($0.12 per diluted share), reversing prior losses and reflecting improved profitability.

• Over $900 million in new loan commitments were deployed in the past 12 months, including $130 million in Q2 2026 across multifamily, self-storage, and hotel properties.

• Portfolio repositioning continued, reducing risk-rated four and five loans and office exposure, while redeploying capital into high-quality new investments.

• Book value per share was $8.82 at June 30, 2026, with total equity of $489 million.

• Declared a $0.15 per share dividend for Q3 2026, maintaining a 14% annualized yield.

Financial highlights

• Total revenue for Q2 2026 was $14.4 million, with net interest margin of $8.6 million.

• Loans held for investment reached $1.8 billion as of June 30, 2026, up $129 million quarter-over-quarter and $484 million year-over-year.

• Distributable earnings were $6.9 million, up from $3.2 million in Q1 2026.

• Expenses for Q2 2026 were $9.0 million, down from $10.8 million in Q2 2025.

• No realized gains or losses in Q2 2026; YTD realized loan losses were $3.3 million on a multifamily loan payoff.

Outlook and guidance

• Management expects available capital of over $100 million to support ongoing asset resolutions and investment objectives.

• Continued focus on resolving risk-rated four and five loans and reducing office loan exposure.

• Targeting a return to historical ROE of 9%-10% as remaining risk-rated loans are resolved.

• Management aims to rebuild earnings to meet or exceed the current dividend level.

• No guidance provided on future earnings or loan growth.