Ares Commercial Real Estate delivers Q2 net income of $4.4 million

• Ares Commercial Real Estate reported $4.4 million in second-quarter net income and $6.9 million in Distributable Earnings.
• The company’s shares fell 0.8% to $4.22 in premarket trading following the release.
• Management said portfolio repositioning and new lending are intended to rebuild earnings toward the current dividend level.

Ares Commercial Real Estate (NYSE:ACRE) reported second-quarter GAAP net income of $4.4 million and Distributable Earnings of $6.9 million.

The result reversed an $11 million loss a year earlier, while total revenue increased to $14.4 million from $12.6 million.

The board declared a $0.15 third-quarter dividend payable October 15, while quarter-end assets totalled $1.82 billion and equity reached $489.2 million.

Following the announcement, Ares Commercial Real Estate's share price was down 0.8% at $4.22 in premarket trading.

The company also closed $130 million in new loan commitments during the quarter, taking commitments above $900 million over the last 12 months.

Management said more than $100 million of available capital will support lending and efforts to reduce higher-risk loans, office exposure and owned properties.