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Ares mercial Real Estate (ACRE) - 2025 Q2 - Earnings Call Presentation
2025-08-05 16:00
Financial Performance - The company reported a GAAP net loss of $11 million, equivalent to a loss of $0.20 per diluted common share[12] - Distributable Earnings (Loss) amounted to $(28) million, or $(0.51) per diluted common share[12] - Excluding realized losses of $33 million from the exit of an office (life sciences) loan, Distributable Earnings were $5 million, or $0.09 per diluted common share[12] - The book value stood at $524 million, or $9.52 per common share ($11.69 excluding CECL reserve)[12] Portfolio & CECL Reserve - The CECL reserve was $119 million, representing 9% of the outstanding principal balance for loans held for investment[12] - The CECL reserve decreased by $20 million in 2Q 2025 due to the exit of an office (life sciences) loan, loan repayments, and other loan-specific attributes[12] - 94% of CECL reserves relates to risk rated 4 and 5 loans[45] - 89% of CECL reserves relates to office and residential / condo loans[45] Strategic Initiatives & Balance Sheet - Office loans were reduced by $61 million QoQ to $524 million, a decrease of 10% QoQ and 30% YoY[12] - Available capital as of June 30, 2025, was $178 million, including $94 million of cash[12] - The company amended and extended a $150 million Morgan Stanley secured funding facility, which includes a $100 million accordion option[12] Dividend - A cash dividend of $0.15 per common share was declared for shareholders for 3Q 2025, equating to an annualized implied dividend yield of 13% to the stock price as of July 31, 2025[12]