Ares Commercial Real Estate Corporation (NYSE:ACRE) on Tuesday reported fourth-quarter results that fell short of profit expectations, even as revenue came in ahead of analyst forecasts.
The specialty finance company recorded a GAAP net loss of $0.07 per diluted share for the fourth quarter of 2025, missing the consensus estimate of a $0.01 per-share loss. Shares showed little reaction, remaining unchanged in after-hours trading following the announcement.
Quarterly revenue totaled $13.22 million, comfortably above the $11.46 million analysts had expected. Distributable earnings for the period were reported at $8.5 million, or $0.15 per diluted common share.
For the full year 2025, Ares Commercial Real Estate reported a GAAP net loss of $0.02 per diluted share, alongside a distributable earnings loss of $0.12 per diluted share.
“The advancements we made in 2025 against our strategic goals of addressing risk rated 4 and 5 loans, reducing office and REO properties and maintaining our flexible balance sheet position allowed ACRE to return to investing in the second half of 2025,” said Bryan Donohoe, Chief Executive Officer of Ares Commercial Real Estate Corporation.
The fourth-quarter results were weighed down by a $9.84 million provision for expected credit losses, which had a material impact on earnings. This was partly offset by a $2.76 million realized gain from the sale of real estate owned during the quarter.
During 2025, the company collected $572 million in loan repayments, a development it said improved balance sheet flexibility. After the end of the year, ACRE also completed $150 million in new loan commitments.
The board declared a first-quarter 2026 dividend of $0.15 per common share, unchanged from the prior quarter. The dividend is scheduled to be paid on April 15, 2026, to shareholders on record as of March 31, 2026.