Overview

• US commercial real estate lender's Q1 net income missed analyst expectations, posting a loss

• Q1 pretax profit also missed analyst expectations

• Company closed $294 mln in new loan commitments during the quarter

Outlook

• Company declared Q2 2026 dividend of $0.15 per share, payable July 15, 2026

• Company says it remains focused on resolving risk-rated loans and selectively investing in new loans

• Company expanded borrowing capacity by $300 mln to support future growth

Result Drivers

• CREDIT LOSS PROVISION - Higher provision for current expected credit losses weighed on results

• REALIZED LOAN LOSSES - Realized losses on loans contributed to net loss

• PORTFOLIO GROWTH - $294 mln in new loan commitments closed during the quarter, per CEO Bryan Donohoe

Company press release: ID:nBw61JBjba

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue from Real Estate Owned		$5.92 mln
Q1 EPS		-$0.17
Q1 Net Income	Miss	-$9.61 mln	$1.54 mln (6 Analysts)
Q1 Pretax Profit	Miss	-$9.58 mln	-$1.70 mln (3 Analysts)

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"

• Wall Street's median 12-month price target for Ares Commercial Real Estate Corp is $5.00, about 4.2% below its May 6 closing price of $5.22

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 24 three months ago

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