2024-05-19 12:42:29 ET
Summary
- Ares Commercial Real Estate Corporation suffered a decline in distributable earnings in Q1 due to non-accrual issues in its loan portfolio.
- The trust increased its provision for credit losses by over $22 million, but the stock did not react significantly, suggesting it may have already bottomed out.
- With a 38% discount to book value and a realigned dividend payout, ACRE may still be attractive for passive income investors with a high risk tolerance.
Ares Commercial Real Estate Corporation ( ACRE ) suffered a big decline in its distributable earnings in the first quarter as the trust works through some non-accrual issues relating to its office and multi-family loan portfolio....
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Ares Commercial Real Estate: 14% Yield Might Be Sustainable