Ares Commercial: 15% Yield In Danger
Portfolio Pulse from
Ares Commercial Real Estate (ACRE) has seen a 25% drop in stock price since a bearish article. The company reduced its dividend from 33 cents to 25 cents in February 2024, but distributable earnings are still below this level. Despite a slight improvement in Q3, ACRE's base earnings run-rate remains impaired.
December 22, 2024 | 2:00 pm
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Ares Commercial Real Estate (ACRE) has reduced its dividend from 33 cents to 25 cents, but distributable earnings are still below this level. The stock has dropped 25% since a bearish article, and despite slight Q3 improvements, the earnings run-rate is impaired.
The reduction in dividends and the continued underperformance of distributable earnings below the new dividend level are significant negative indicators for ACRE. The 25% stock drop reflects investor concerns, and the impaired earnings run-rate suggests ongoing financial challenges.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100