Ares mercial Real Estate (ACRE) - 2025 Q1 - Quarterly Results

Financial Performance - First quarter 2025 GAAP net income was $9.3 million, or $0.17 per diluted common share, while Distributable Earnings were $7.2 million, or $0.13 per diluted common share[2] - The company reported total revenue of $14.9 million for the first quarter 2025, a decrease from $18.7 million in the same period of 2024[13] - Interest income for the first quarter 2025 was $27.5 million, down from $44.0 million year-over-year[13] - Total expenses increased to $10.7 million in the first quarter 2025, compared to $8.6 million in the first quarter 2024[13] - Net income attributable to common stockholders for the three months ended March 31, 2025, was $9,345,000, while for the twelve months it was a loss of $13,325,000[17] - Distributable Earnings for the three months ended March 31, 2025, were $7,237,000, compared to a loss of $3,886,000 for the twelve months[17] - Basic Distributable Earnings per common share for the three months ended March 31, 2025, was $0.13, while for the twelve months it was a loss of $0.07[17] - Diluted Distributable Earnings per common share for the three months ended March 31, 2025, was $0.13, compared to a loss of $0.07 for the twelve months[17] - The net income attributable to common stockholders per share for the three months ended March 31, 2025, was $0.17, while for the twelve months it was a loss of $0.24[17] Dividend Information - The company declared a second quarter 2025 dividend of $0.15 per common share, following a similar dividend for the first quarter[5] Capital and Assets - As of May 2, 2025, the company had approximately $147 million of available capital, including $113 million in cash, equating to more than $2.00 per share[2] - The company's total assets as of March 31, 2025, were $1.52 billion, down from $1.75 billion at the end of 2024[12] - Total liabilities decreased to $977.5 million as of March 31, 2025, from $1.21 billion at the end of 2024[12] Credit Losses and Provisions - The company experienced a reversal of current expected credit losses of $5.3 million in the first quarter 2025, compared to a provision of $22.3 million in the same period of 2024[13] - The provision for current expected credit losses for the three months ended March 31, 2025, was a reversal of $5,340,000, while for the twelve months it was a reversal of $1,223,000[17] Stock Compensation and Depreciation - Stock-based compensation for the three months ended March 31, 2025, amounted to $1,050,000, and for the twelve months it was $4,505,000[17] - Depreciation and amortization of real estate owned for the three months ended March 31, 2025, was $2,182,000, with a total of $6,157,000 for the twelve months[17] Strategic Outlook - The company aims to leverage its enhanced liquidity and balance sheet flexibility to explore new investment opportunities, including new loans[2] Incentive Fees and Unrealized Losses - No incentive fees to affiliates were recorded for both the three and twelve months ended March 31, 2025[17] - There were no changes in unrealized losses on loans held for sale during the reporting periods[17]