Ares Commercial: The 14% Yield Is Likely Not Sustainable
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Ares Commercial is facing challenges with impaired loans in its office segment, leading to increased CECL reserves and realized losses. The REIT's dividend is not supported by distributable earnings, raising concerns about the sustainability of its 14% yield.
November 21, 2024 | 1:45 am
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Ares Commercial is struggling with impaired loans, leading to increased CECL reserves and realized losses. The REIT's dividend is not supported by distributable earnings, questioning the sustainability of its 14% yield.
Ares Commercial's financial struggles with impaired loans and increased CECL reserves indicate potential instability. The inability to support dividends with distributable earnings suggests the 14% yield may not be sustainable, likely impacting the stock negatively.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100