AG真人官方

Ares Commercial AG真人官方 Estate Corporation Reports First Quarter 2025 Results

First quarter GAAP net income of $9.3 million or $0.17 per diluted common share and Distributable Earnings⁽¹⁾ of $7.2 million or $0.13 per diluted common share

- Subsequent to the three months ended March 31, 2025 -

Declared second quarter 2025 dividend of $0.15 per common share

NEW YORK--(BUSINESS WIRE)-- Ares Commercial AG真人官方 Estate Corporation (the 鈥淐ompany鈥�) (NYSE:ACRE), a specialty finance company primarily engaged in directly originating and investing in commercial real estate assets, reported generally accepted accounting principles (鈥淕AAP鈥�) net income of $9.3 million or $0.17 per diluted common share and Distributable Earnings⁽¹⁾ of $7.2 million or $0.13 per diluted common share for the first quarter of 2025.

鈥淚n the first quarter, we successfully increased liquidity, further reduced debt and achieved our targeted balance sheet position,鈥� said Bryan Donohoe, Chief Executive Officer of Ares Commercial AG真人官方 Estate Corporation. 鈥淪table to improving trends across the portfolio coupled with our strong available capital allows us to actively consider a wider range of uses for our additional liquidity. In support of these efforts, the scale and experience of the Ares AG真人官方 Estate team, enhanced by Ares鈥� recent acquisition of GCP, advantages us in building shareholder value.鈥�

鈥淲e believe the flexibility of our balance sheet enhances our ability to accelerate successful outcomes in our portfolio and positions the Company to evaluate a number of opportunities for investing our additional capital, including into new loans,鈥� said Jeff Gonzales, Chief Financial Officer of Ares Commercial AG真人官方 Estate Corporation. 鈥淒uring the first quarter, our balance sheet was further strengthened by $307 million of repayments leading to reduced borrowings and increased liquidity. As of May 2, 2025, we have approximately $147 million of available capital, including $113 million of cash equating to more than $2.00 per share.鈥�

COMMON STOCK DIVIDEND

On February 12, 2025, the Board of Directors of the Company declared a regular cash dividend of $0.15 per common share for the first quarter of 2025. The first quarter 2025 dividend was paid on April 15, 2025 to common stockholders of record as of March 31, 2025.

On May 7, 2025, the Board of Directors of the Company declared a regular cash dividend of $0.15 per common share for the second quarter of 2025. The second quarter 2025 dividend will be payable on July 15, 2025 to common stockholders of record as of June 30, 2025.

ADDITIONAL INFORMATION

The Company issued a presentation of its first quarter 2025 results, which can be viewed at on the Investor Resources section of our home page under Events and Presentations. The presentation is titled 鈥淔irst Quarter 2025 Earnings Presentation.鈥� The Company also filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 with the U.S. Securities and Exchange Commission on May 7, 2025.

CONFERENCE CALL AND WEBCAST INFORMATION

On Wednesday, May 7, 2025, the Company invites all interested persons to attend its webcast/conference call at 12:00 p.m. (Eastern Time) to discuss its first quarter 2025 financial results.

All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Home page of the Investor Resources section of the Company鈥檚 website at . Please visit the website to test your connection before the webcast. Domestic callers can access the conference call by dialing +1 (800) 225-9448. International callers can access the conference call by dialing +1 (203) 518-9708. Please provide passcode ACREQ125. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected. For interested parties, an archived replay of the call will be available through June 7, 2025 at 5:00 p.m. (Eastern Time) to domestic callers by dialing +1 (800) 695-0715 and to international callers by dialing +1 (402) 220-1423. An archived replay will also be available through June 7, 2025 on a webcast link located on the Home page of the Investor Resources section of the Company鈥檚 website.

ABOUT ARES COMMERCIAL REAL ESTATE CORPORATION

Ares Commercial AG真人官方 Estate Corporation (the 鈥淐ompany鈥�) is a specialty finance company primarily engaged in directly originating and investing in commercial real estate loans and related investments. Through its national direct origination platform, the Company provides a broad offering of flexible and reliable financing solutions for commercial real estate owners and operators. The Company originates senior mortgage loans, as well as subordinate financings, mezzanine debt and preferred equity, with an emphasis on providing value added financing on a variety of properties located in liquid markets across the United States. Ares Commercial AG真人官方 Estate Corporation elected and qualified to be taxed as a real estate investment trust and is externally managed by a subsidiary of Ares Management Corporation. For more information, please visit . The contents of such website are not, and should not be deemed to be, incorporated by reference herein.

FORWARD-LOOKING STATEMENTS

Statements included herein or on the webcast / conference call may constitute 鈥渇orward-looking statements鈥� within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. These statements relate to future events or the Company鈥檚 future performance or financial condition and include, but are not limited to, statements about the resolution of underperforming loans, liquidity management, reduction or increase of CECL reserve, reduction or increase of available borrowings, the industry and the loan market. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including global economic trends and economic conditions, including high inflation, slower growth or recession, changes to fiscal and monetary policy, higher interest rates, currency fluctuations, changes caused by tariffs and trade disputes with other countries, changes in interest rates, credit spreads and the market value of the Company鈥檚 investments, the Company's business and investment strategy, the Company's projected operating results, the return or impact of current and future investments, access to the financing and debt markets, the demand for commercial real estate loans, rates of prepayments on the Company鈥檚 mortgage loans and the effect on the Company鈥檚 business of such prepayments, availability of investment opportunities in mortgage-related and real estate-related investments and securities, the ability of Ares Commercial AG真人官方 Estate Management LLC (鈥淎CREM鈥� or our 鈥淢anager鈥�) to locate suitable investments for the Company, monitor, service and administer the Company鈥檚 investments and execute its investment strategy, and the risks described from time to time in the Company鈥檚 filings with the Securities and Exchange Commission (the 鈥淪EC鈥�), including, but not limited to, the risk factors described in Part I, Item 1A. Risk Factors in the Company鈥檚 Annual Report on Form 10-K, filed with the SEC on February 12, 2025. Any forward-looking statement, including any contained herein, speaks only as of the time of this press release and Ares Commercial AG真人官方 Estate Corporation undertakes no duty to update any forward-looking statements made herein or on the webcast/conference call. Projections and forward-looking statements are based on management鈥檚 good faith and reasonable assumptions, including the assumptions described herein.

SCHEDULE I

Reconciliation of Net Income (Loss) to Non-GAAP Distributable Earnings (Loss)

Distributable Earnings (Loss) is a non-GAAP financial measure that helps the Company evaluate its financial performance excluding the effects of certain transactions and GAAP adjustments that it believes are not necessarily indicative of its current loan origination portfolio and operations. To maintain the Company鈥檚 REIT status, the Company is generally required to annually distribute to its stockholders substantially all of its taxable income. The Company believes the disclosure of Distributable Earnings (Loss) provides useful information to investors regarding the Company鈥檚 ability to pay dividends, which is one of the principal reasons the Company believes investors invest in the Company. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Distributable Earnings (Loss) is defined as net income (loss) attributable to common stockholders computed in accordance with GAAP, excluding non-cash equity compensation expense, the incentive fees the Company pays to its Manager, depreciation and amortization (to the extent that any of the Company鈥檚 target investments are structured as debt and the Company forecloses on any properties underlying such debt), any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income (loss), one-time events pursuant to changes in GAAP and certain non-cash charges after discussions between the Company鈥檚 Manager and the Company鈥檚 independent directors and after approval by a majority of the Company鈥檚 independent directors. Loan balances that are deemed to be uncollectible are written off as a realized loss and are included in Distributable Earnings (Loss). Distributable Earnings (Loss) is aligned with the calculation of 鈥淐ore Earnings,鈥� which is defined in the Management Agreement and is used to calculate the incentive fees the Company pays to its Manager.

Reconciliation of net income (loss) attributable to common stockholders, the most directly comparable GAAP financial measure, to Distributable Earnings (Loss) is set forth in the table below for the three months and twelve months ended March 31, 2025 ($ in thousands):

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INVESTOR RELATIONS CONTACTS

Ares Commercial AG真人官方 Estate Corporation

Carl Drake or John Stilmar

(888) 818-5298

[email protected]

Source: Ares Commercial AG真人官方 Estate Corporation