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Ares mercial Real Estate (ACRE) - 2025 Q1 - Earnings Call Presentation
2025-05-07 11:21

Financial Performance - GAAP net income was $9 million, or $0.17 per diluted common share[12] - Distributable Earnings were $7 million, or $0.13 per diluted common share[12] - The company reported a stable book value of $542 million, or $9.88 per common share (or $12.43 excluding CECL reserve)[12] - A cash dividend of $0.15 per common share was declared for 2Q 2025, equating to an annualized implied dividend yield of 14.5%[12] Balance Sheet and Capital Management - Total borrowings were reduced by $228 million to $946 million[12] - The net debt to equity ratio excluding CECL reserve decreased to 1.2x at 1Q 2025 from 1.6x at 4Q 2024[12] - Available capital as of May 2, 2025, was $147 million, including cash of $113 million[12] Portfolio and Asset Quality - $307 million of repayments were collected, including nine full loan repayments[12] - Office loans were reduced by $55 million to $585 million at 1Q 2025 from $640 million at 4Q 2024[12] - The CECL reserve is $140 million, representing 10% of the outstanding principal balance for loans held for investment[12] - 93% of CECL reserves relate to risk rated 4 and 5 loans[42]