Ares Commercial Real Estate reports $10 million Q3 profit

Ares Commercial Real Estate Corporation (NYSE:ACRE) reported third-quarter 2026 GAAP net income of $10 million, or $0.18 per diluted share, compared with $0.08 per share in the prior-year quarter, supported partly by a property sale gain.

Total revenue declined to $13.513 million from $14.105 million a year earlier, while the company recorded a $7.082 million gain from selling an owned real estate property.

Distributable Earnings, a non-GAAP measure, totalled $6.7 million, or $0.12 per diluted share, while credit-loss reserves increased to $139.325 million at September 30 from $125.756 million at December 31, 2025.

After the quarter ended, Ares fully repaid and terminated its $90 million secured term loan and declared an unchanged fourth-quarter dividend of $0.15 per share, payable January 15, 2027.

Ares Commercial Real Estate provides financing to commercial property owners and operators through investments in senior mortgage loans, subordinate loans, mezzanine debt and preferred equity.

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Editorial verification notes

• Reporting period: Third quarter ended September 30, 2026.
• Announcement date: November 6, 2026.
• GAAP net income: $10.0 million.
• GAAP diluted EPS: $0.18 versus $0.08.
• Distributable Earnings: $6.7 million.
• Distributable Earnings per diluted share: $0.12.
• Total revenue: $13.513 million versus $14.105 million.
• Property sale gain: $7.082 million.
• Secured term loan repaid: $90 million.
• Credit-loss reserves: $139.325 million versus $125.756 million.
• Fourth-quarter dividend: $0.15 per share.
• Dividend payment date: January 15, 2027.
• Dividend record date: December 31, 2026.
• Strategic focus: Reducing office and owned real estate investments and resolving risk-rated 4 and 5 loans.

Important editorial distinctions:

1. The $10 million GAAP profit includes a $7.082 million property sale gain.
2. Distributable Earnings is a non-GAAP measure and should remain separate from GAAP net income.
3. Higher net income does not indicate higher revenue; quarterly revenue declined year over year.
4. The $90 million loan repayment occurred after September 30, 2026.
5. The $0.15 dividend is unchanged, not an increase.

Primary sources:

• Ares Commercial Real Estate Corporation – Q3 2026 results announcement
• Ares Commercial Real Estate Investor Relations
• Financial reports and SEC filings