Ares mercial Real Estate (ACRE) - 2024 Q3 - Quarterly Results

Financial Performance - Third quarter 2024 GAAP net loss of $(5.9) million or $(0.11) per diluted common share, with Distributable Earnings of $3.7 million or $0.07 per diluted common share[1] - Total revenue for the nine months ended September 30, 2024, was $52,141, down 30.6% from $75,374 in the same period of 2023[12] - Net income attributable to common stockholders for the three months ended September 30, 2024, was a loss of $5,880, compared to a profit of $9,184 in the same period of 2023[12] - Basic earnings per common share for the three months ended September 30, 2024, was $(0.11), down from $0.17 in the same period of 2023[12] - Distributable earnings for the three months ended September 30, 2024, were $3,730, compared to a loss of $25,587 for the twelve months ended September 30, 2024[15] - Total expenses for the three months ended September 30, 2024, were $9,309, an increase from $6,602 in the same period of 2023[12] Balance Sheet and Assets - Outstanding debt balance decreased by 8% during the third quarter, indicating continued de-leveraging of the balance sheet[1] - Total assets as of September 30, 2024, were $1.94 billion, down from $2.28 billion as of December 31, 2023[11] - Total liabilities decreased to $1.38 billion from $1.65 billion as of December 31, 2023[11] - Cash and cash equivalents were $68.88 million, down from $110.46 million as of December 31, 2023[11] - The current expected credit loss reserve decreased to $(144.07) million from $(159.89) million[11] Credit Quality and Losses - Risk rated 4 and 5 loans declined by 33%, reflecting progress in resolving underperforming assets[1] - The provision for current expected credit losses increased to $7,461 for the three months ended September 30, 2024, from $3,227 in the same period of 2023[12] - Realized losses on loans for the nine months ended September 30, 2024, were $67,879, compared to $10,499 in the same period of 2023[12] Income and Interest - Interest income for the three months ended September 30, 2024, was $39,345, a decrease of 25.5% compared to $52,819 for the same period in 2023[12] - The net interest margin for the three months ended September 30, 2024, was $11,944, down from $23,074 in the same period of 2023[12] Future Outlook - The company aims to strengthen its balance sheet and enhance portfolio growth and earnings in the future[1] - The company continues to maintain strong levels of liquidity despite the reduction in total assets[1] Dividends - Declared fourth quarter 2024 dividend of $0.25 per common share, payable on January 15, 2025[3] Shareholder Information - The weighted average number of common shares outstanding for the three months ended September 30, 2024, was 54,464,147, compared to 54,085,035 in the same period of 2023[12]