Ares Commercial: Mortgage REIT Cuts On Schedule
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Ares Commercial, a mortgage REIT, has cut its distributions again due to negative distributable EPS in Q4-2024 and an increase in poorly rated loans. The company has the worst underwriting results among its peers.
February 12, 2025 | 6:45 pm
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Ares Commercial has cut its distributions again due to negative distributable EPS and an increase in loans rated 4 and 5. The company has the worst underwriting results among mortgage REITs.
The repeated distribution cuts and negative EPS indicate financial struggles, likely leading to a negative short-term impact on ACRE's stock price. The increase in poorly rated loans and poor underwriting results further exacerbate the situation.
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