Ares Commercial Real Estate (NYSE:ACRE) reported fourth-quarter 2025 results on Tuesday, February 10, 2026, signaling that the specialty finance firm has turned a corner in its multi-year effort to de-risk its loan portfolio.
The New York-based REIT posted distributable earnings of $0.15 per share, significantly outperforming the $0.01 per share consensus estimate from analysts surveyed by Zacks Investment Research.
While the company reported a GAAP net loss of $3.9 million ($0.07 per share) for the quarter—largely due to a $9.8 million provision for credit losses—the underlying cash-style earnings remained resilient.
Total interest income for the quarter reached $23.7 million, contributing to a full-year revenue total of $97.6 million.
The narrower full-year GAAP loss of $902,000 indicates a substantial stabilization compared to the volatility seen in early 2025, as the company successfully executed $572 million in loan repayments throughout the year.
CEO Bryan Donohoe noted that the company’s "advancements in addressing risk-rated 4 and 5 loans" and reducing office property exposure allowed the firm to return to active investing in the second half of 2025.
This momentum has carried into the new year, with ACRE closing $150 million in new loan commitments subsequent to year-end.