Ares mercial Real Estate (ACRE) - 2025 Q3 - Quarterly Results

Financial Performance - Third quarter GAAP net income was $4.7 million, or $0.08 per diluted common share, with Distributable Earnings of $5.5 million, or $0.10 per diluted common share[1][2] - The total revenue for the third quarter was $14.1 million, compared to $16.7 million in the same quarter of 2024, reflecting a decrease of approximately 15.5%[14] - Interest income for the third quarter was $23.3 million, down from $39.3 million in the same quarter of 2024[14] - The company reported a net interest margin of $8.5 million for the third quarter, compared to $11.9 million in the same quarter of 2024[14] - Distributable Earnings (Loss) for the three months ended September 30, 2025, was $5,496,000, while for the twelve months it was $(23,471,000)[19] - Net income attributable to common stockholders for the three months ended September 30, 2025, was $4,653,000, compared to $(7,701,000) for the twelve months[19] - Basic Distributable Earnings (Loss) per common share for the three months was $0.10, while it was $(0.43) for the twelve months[19] - Diluted Distributable Earnings (Loss) per common share for the three months was $0.10, while it was $(0.42) for the twelve months[19] Capital and Liquidity - Year-to-date, the company has collected nearly $500 million in repayments, enhancing its liquidity position[2] - As of September 30, 2025, the company had approximately $173 million in available capital[2] - The company closed $271 million in new loan commitments subsequent to the third quarter[1] Assets and Reserves - Total assets as of September 30, 2025, were $1.39 billion, a decrease from $1.75 billion as of December 31, 2024[13] - The current expected credit loss reserve was $115.3 million, down from $136.2 million at the end of 2024[13] Dividends and Distributions - The company declared a fourth quarter 2025 dividend of $0.15 per common share, consistent with the third quarter dividend[6] - The Company is required to distribute substantially all of its taxable income to maintain its REIT status[18] - Distributable Earnings (Loss) is aligned with the calculation of "Core Earnings" used for incentive fee calculations[18] - The Company believes Distributable Earnings (Loss) provides useful information regarding its ability to pay dividends[18] Expenses - Stock-based compensation for the three months was $1,024,000, and $4,133,000 for the twelve months[19] - Depreciation and amortization of real estate owned amounted to $2,009,000 for the three months and $8,747,000 for the twelve months[19] - Provision for (reversal of) current expected credit losses, net, was $(2,190,000) for the three months and $(28,650,000) for the twelve months[19]