Ares Commercial: The 14% Yield Is Likely Not Sustainable

Core Viewpoint - Ares Commercial Real Estate (NYSE: ACRE) is at risk of a dividend cut due to its inability to support the $0.25 per-share quarterly dividend with earnings available for distribution, primarily caused by ongoing loan performance issues [1]. Group 1: Company Performance - Ares Commercial Real Estate has disclosed that it failed to cover its quarterly dividend with sufficient earnings, indicating financial strain [1]. - The company has faced persistent loan performance problems, which have contributed to its current financial challenges [1].