Ares mercial Real Estate (US:ACRE)2025-02-12 16:01Financial Performance - The company reported a GAAP EPS loss of $(0.20) for 4Q 2024 and $(0.64) for the full year 2024 [12] - Distributable EPS was $(0.15) for 4Q 2024 and $(0.82) for the full year 2024, but excluding realized losses, it was $0.18 and $0.75, respectively [12] - Book value per common share was $9.90 as of December 31, 2024, or $12.56 excluding the CECL reserve [12] Portfolio and Risk Management - The company has a $145 million CECL reserve at 4Q 2024, representing 8.5% of the outstanding principal balance for loans held for investment [12] - The company reduced the loan portfolio by $460 million from YE 2023 to $1.7 billion at YE 2024, a 21% decrease [12] - The outstanding principal balance of risk rated 4 and 5 loans decreased by $182 million in FY 2024, a 34% decrease since YE 2023 [12] - 91% of the total CECL reserve relates to risk rated 4 and 5 loans [26] - CECL reserve is 37% of loan balance for risk rated 4 and 5 loans [26] Liquidity and Capital Structure - The company reduced debt by $444 million from YE 2023 to $1.2 billion at YE 2024, a 27% decrease [12] - Available capital increased by $80 million from 3Q 2024 to $201 million, a 66% increase [12] - Net debt to equity ratio excluding CECL reserve was reduced to 1.6x at 4Q 2024 [12] Dividends - A cash dividend of $0.15 per common share was declared for shareholders for 1Q 2025, equating to an annualized implied dividend yield of 10.1% [12]