Ares Commercial Real Estate

Dividend Yield: 7.90%

Ares Commercial Real Estate (NYSE: ACRE) shares currently have a dividend yield of 7.90%.

Ares Commercial Real Estate Corporation, a specialty finance company, operates as a real estate investment trust (REIT). It originates, invests in, and manages middle-market commercial real estate (CRE) loans and other commercial real estate investments. The company has a P/E ratio of 25.78.

The average volume for Ares Commercial Real Estate has been 426,200 shares per day over the past 30 days. Ares Commercial Real Estate has a market cap of $352.2 million and is part of the real estate industry. Shares are down 23.1% year to date as of the close of trading on Monday.

TheStreet Ratings rates Ares Commercial Real Estate as a sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • ACRE's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 28.10%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, ARES COMMERCIAL REAL ESTATE underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • The gross profit margin for ARES COMMERCIAL REAL ESTATE is rather high; currently it is at 55.72%. It has increased significantly from the same period last year. Along with this, the net profit margin of 40.37% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 263.71% to $0.79 million when compared to the same quarter last year. In addition, ARES COMMERCIAL REAL ESTATE has also vastly surpassed the industry average cash flow growth rate of 5.47%.
  • ARES COMMERCIAL REAL ESTATE reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings ($0.68 versus $0.10).

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