Ares Commercial: Dividend Cut, What Now?

Richard Drury Ares Commercial Real Estate (NYSE:ACRE) announced a 24% dividend cut last week as the company suffers from the fallout in the commercial real estate market. Like other commercial mortgage lenders, the REIT has seen an increase in its reserve for expected credit losses, which impacted Ares Commercial's P&L negatively in the fourth quarter. The earnings report and associated dividend cut caused shares to drop to a new 1-year low. However, since the REIT is now going to have better dividend cover ...