ACRE NYSE Earnings call
Ares Commercial Real Estate Corp (ACRE) · Q2 2026 results
Share price: $3.61 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 4 Aug 2026 and 7 May 2026
Net income turned to a profit from a loss last quarter. Management sounded restrained, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
Turned profit
Net income vs Q1 2026
Outlook given
Net income 4.4M vs -9.6M
Revenue +6.7%
2 · How management spoke
Restrained
Less upbeat than 78% of company calls
Answers to analysts: cautious, in line with the script.
Similar to last call.
3 · What stood out
Figure
ACRE's loans held for investment increased by $129 million to reach $1.8 billion as of June 30, 2026, growing the portfolio.
Valuation
Reverse DCF. Free cash flow from the last full fiscal year, grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
Valuation unavailable: no OCF/capex (bank, utility, or SEC gap).
Current price
$3.61
close of 2026-11-11
P/E
2.7
today
Revenue growth, 3 years
−19.9% a year
compound annual rate (CAGR)
Read between the lines
-
Guidance
ACRE expects to return to its historical ROE of about 9% over a longer-term period as the company resolves its remaining 4 and 5 rated loans.
Source quote
“And then over a longer-term period, as we resolve the remaining 4 and 5 rated loans, we expect to get back to our historical ROE of about 9%...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“We are encouraged by the progress achieved thus far and remain confident that the actions we're taking today are building a high-quality portfolio, enhancing future earnings power and creating a...”
“At the same time, we are strategically redeploying capital into high-quality new investments, largely to support growth in earnings and achieve our long-term portfolio objectives.”
“94% of our total CECL reserve or $130 million relates to our risk rated 4 and 5 loans and nearly half of the total CECL reserve is attributed to the...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 14.4M | 13.5M | +6.7% | 12.6M | +14.3% |
| Operating income | 4.5M | -9.6M | Turned profit | -11.0M | Turned profit |
| Net income | 4.4M | -9.6M | Turned profit | -11.0M | Turned profit |
| P/E today 2.7 | — | — | — | — | — |
Topics
Most discussed now
- New Ares Commercial Real Estate also had no new REO properties and the operating...
- New Ares Commercial Real Estate has a massive addressable universe of $7 trillion of transactions across the U.S.
- Ares Commercial Real Estate continues to believe that the scale of the Ares Real Estate platform is a key differentiator in allowing us...
- While sales transaction activity did moderate somewhat during the second quarter, Ares Commercial Real Estate sees compelling opportunities…
- Ares Commercial Real Estate continues to maintain its strong balance sheet position with moderate leverage, which supports further…
Faded since Q1 2026
- Fading This origination activity supported steady growth in the loan portfolio for the second consecutive quarter.
- Fading The combination of reset valuations and what Ares Commercial Real Estate believes is the beginning of capital rotation into the asset class…
- Fading Notably, 37% of the investment loan portfolio balance was originated in the past twelve months.
- Fading Its focus remains on lower CapEx cycle asset classes, and then Ares Commercial Real Estate is looking at the fundamentals both from…
Latest announcements
Official filings, newest first.
- Acquisition or disposal · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K