(ACRE) Ares Commercial Real Estate - Ratings and Ratios
Mortgage Loans, Subordinate Debt, Preferred Equity, Mezzanine Loans, Commercial Securities
ACRE EPS (Earnings per Share)
ACRE Revenue
Description: ACRE Ares Commercial Real Estate
Ares Commercial Real Estate Corporation is a specialty finance company that specializes in originating and investing in commercial real estate (CRE) loans and related investments in the United States, providing loan opportunities for CRE property owners, operators, and sponsors.
The companys diverse investment portfolio includes senior mortgage loans, subordinate debt, preferred equity products, mezzanine loans, and other CRE investments, such as commercial mortgage-backed securities, allowing it to capitalize on various market opportunities. As a real estate investment trust (REIT), it is well-positioned to benefit from the tax advantages associated with this status.
To evaluate the companys performance, key performance indicators (KPIs) such as Net Interest Margin (NIM), which measures the difference between interest income and interest expense, and the ratio of non-performing assets to total assets can be used. Additionally, metrics like the loan-to-value (LTV) ratio, debt-to-equity ratio, and interest coverage ratio can provide insights into the companys risk management and financial health.
Further analysis can be done by examining the companys ability to generate returns through metrics such as Return on Average Equity (ROAE) and Return on Average Assets (ROAA). The companys dividend yield and payout ratio can also be evaluated to assess its attractiveness to income-seeking investors.
ACRE Stock Overview
| Market Cap in USD | 244m |
| Sector | Real Estate |
| Industry | REIT - Mortgage |
| GiC Sub-Industry | Mortgage REITs |
| IPO / Inception | 2012-04-26 |
ACRE Stock Ratings
| Growth Rating | -48.3 |
| Fundamental | - |
| Dividend Rating | 53.6 |
| Rel. Strength | -28.5 |
| Analysts | 2.57 of 5 |
| Fair Price Momentum | 4.52 USD |
| Fair Price DCF | 12.12 USD |
ACRE Dividends
| Dividend Yield 12m | 16.42% |
| Yield on Cost 5y | 13.51% |
| Annual Growth 5y | -5.40% |
| Payout Consistency | 95.8% |
| Payout Ratio | % |
ACRE Growth Ratios
| Growth Correlation 3m | -17.8% |
| Growth Correlation 12m | -79% |
| Growth Correlation 5y | -62.1% |
| CAGR 5y | -5.56% |
| CAGR/Max DD 5y | -0.08 |
| Sharpe Ratio 12m | -0.57 |
| Alpha | -45.84 |
| Beta | 0.842 |
| Volatility | 46.69% |
| Current Volume | 728.2k |
| Average Volume 20d | 373.6k |
| Stop Loss | 4.2 (-5.6%) |
As of August 08, 2025, the stock is trading at USD 4.45 with a total of 728,193 shares traded.
Over the past week, the price has changed by -0.45%, over one month by -5.32%, over three months by -1.93% and over the past year by -25.46%.
Probably not. Based on ValueRay´s Analyses, Ares Commercial Real Estate (NYSE:ACRE) is currently (August 2025) not a good stock to buy. It has a ValueRay Growth Rating of -48.28 and therefor a somwhat technical negative rating according to historical growth.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of ACRE is around 4.52 USD . This means that ACRE is currently overvalued and has a potential downside of 1.57%.
Ares Commercial Real Estate has received a consensus analysts rating of 2.57. Therefor, it is recommend to hold ACRE.
- Strong Buy: 0
- Buy: 0
- Hold: 5
- Sell: 1
- Strong Sell: 1
According to our own proprietary Forecast Model, ACRE Ares Commercial Real Estate will be worth about 4.9 in August 2026. The stock is currently trading at 4.45. This means that the stock has a potential upside of +10.34%.
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 5.1 | 14.2% |
| Analysts Target Price | 4.7 | 5.4% |
| ValueRay Target Price | 4.9 | 10.3% |
ACRE Fundamental Data Overview
CCE Cash And Equivalents = 134.1m USD (Cash And Short Term Investments, last quarter)
P/E Forward = 7.3368
P/S = 3.6381
P/B = 0.4505
P/EG = 2.57
Beta = 1.363
Revenue TTM = 25.8m USD
EBIT TTM = 82.1m USD
EBITDA TTM = 88.2m USD
Long Term Debt = 270.4m USD (last quarter)
Short Term Debt = 674.4m USD (last quarter)
Net Debt = 819.3m USD (last quarter)
Debt = 944.8m USD (Short Term 674.4m + Long Term 270.4m)
Enterprise Value = 1.05b USD (Market Cap 244.2m + Debt 944.8m - CCE 134.1m)
Interest Coverage Ratio = 0.86 (Ebit TTM 82.1m / Interest Expense TTM 95.4m)
FCF Yield = 3.02% (FCF TTM 31.8m / Enterprise Value 1.05b)
[93m FCF Margin = 123.5% (FCF TTM 31.8m / Revenue TTM 25.8m)
[39m Net Margin = -51.73% (Net Income TTM -13.3m / Revenue TTM 25.8m)
Gross Margin = 39.65% ((Revenue TTM 25.8m - Cost of Revenue TTM 15.5m) / Revenue TTM)
[93m Tobins Q-Ratio = -1.02 (Enterprise Value 1.05b / Book Value Of Equity -1.04b)
[39m Interest Expense / Debt = 1.93% (Interest Expense 18.2m / Debt 944.8m)
Taxrate = 0.05% (Income Tax Expense -18.0k / Income Before Tax -35.0m, last fiscal year)
NOPAT = 82.0m (EBIT 82.1m × (1 – 0.05%))
Current Ratio = 0.12 (Total Current Assets 74.5m / Total Current Liabilities 607.5m)
Debt / Equity = 1.74 (Debt 944.8m / last Quarter total Stockholder Equity 542.1m)
Debt / EBITDA = 10.71 (Net Debt 819.3m / EBITDA 88.2m)
Debt / FCF = 29.70 (Debt 944.8m / FCF TTM 31.8m)
Total Stockholder Equity = 557.1m (last 4 quarters mean)
RoA = -0.88%
RoE = -2.39% (Net Income TTM -13.3m / Total Stockholder Equity 557.1m)
RoCE = 9.92% (Ebit 82.1m / Total Stockholder Equity 557.1m + Long Term Debt 270.4m)
RoIC = 4.59% (NOPAT 82.0m / Invested Capital 1.79b)
WACC = 5.91% ((Market Cap / EV) * CAPM 20.38%) + (Debt / EV) * Interest Expense on Debt * (1 - Taxrate)
Shares Correlation 5-Years: 70.0 | Cagr: 3.32%
Discount Rate = 5.91% (= WACC) -> adjusted to the min. Equity Risk Premium 8%
Fair Price DCF = 12.12 (DCF Value 666.4m / Shares Outstanding 55.0m)
Revenue Correlation: -44.23 | Revenue CAGR: -15.92%
Revenue Growth Correlation: -56.18%
EPS Correlation: 42.00 | EPS CAGR: -5.27%
EPS Growth Correlation: -15.27%
Additional Sources for ACRE Stock
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Fund Manager Positions: Dataroma | Stockcircle