Ares Commercial Real Estate Corp

Ares Commercial Real Estate Corp (ACRE) Stock Analysis

$3.500

-0.049 (-1.41%)At close

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High
3.610
Open
3.510
VWAP
3.53
Volume
746.39K
Mkt Cap
363.56M
Low
3.475
Amount
2.63M
EV/EBITDA, TTM
56.39

Ares Commercial Real Estate Corporation is a specialty finance company primarily engaged in directly originating and investing in commercial real estate loans and related investments. The Company, through its national direct origination platform, provides a broad offering of flexible and reliable financing solutions for commercial real estate owners and operators. The Company originates senior mortgage loans, as well as subordinate financings, mezzanine debt and preferred equity, with an emphasis on providing value added financing on a variety of properties located in liquid markets across the United States. Senior mortgage loans are typically secured by first liens on commercial properties, including property types, such as office, multifamily, self storage, retail, hotel, healthcare, student housing, industrial, mixed-use, residential and residential condominium. The Company is externally managed by Ares Commercial Real Estate Management LLC.

AI analysis of Ares Commercial Real Estate Corp (ACRE)

Sell

Ares Commercial Real Estate Corp (ACRE) is not a good buy right now due to its current price of $3.55, which is significantly below analyst price targets of $5 to $6. The company has a very low RSI of 14.315, indicating it is oversold, but this is coupled with ongoing financial struggles, including a net income of only $4.4 million in Q2 2026, which is insufficient to cover its dividend of $0.15 per share. Additionally, the company has a high debt-to-equity ratio of 258.24%, indicating financial risk. The main risk is the potential for further dividend cuts due to insufficient earnings, as highlighted by the recent news summaries.

Analyst Ratings (6)

+38.00% upside
Buy
3 Buy
2 Hold
1 Sell
Current: 3.50
Low
4.00
Average
4.83
High
5.50

JPMorgan

2026-07-17

Price Target

$5

Neutral

UBS

2026-06-02

Price Target

$5.50

Neutral

Keefe Bruyette

2026-05-13

Price Target

$6

Outperform

JPMorgan

2026-04-16

Price Target

$6

Neutral

BofA

2026-02-24

Price Target

$5

Underperform

Valuation Metrics

The current forward P/E ratio for Ares Commercial Real Estate Corp (ACRE) is 7.34, compared to its 5-year average forward P/E of 16.04.

Forward P/E

Fair
5Y Average P/E
16.04
Current P/E
7.34
Overvalued
33.78
Undervalued
-1.69

Forward EV/EBITDA

Strongly Overvalued
5Y Average EV/EBITDA
3.38
Current EV/EBITDA
56.39
Overvalued
18.18
Undervalued
-11.41

Forward P/S

Strongly Undervalued
5Y Average P/S
5.50
Current P/S
3.25
Overvalued
6.57
Undervalued
4.42

Alphio AI Price Scenarios for ACRE

Scenario prices are the last monthly forecast band of the current year. Probabilities are fixed model weights (25 / 50 / 25), not guarantees.

B

Bull

Bull · 25%ACRE

$3.93

Scenario price

B

Base

Base · 50%ACRE

$3.35

Scenario price

B

Bear

Bear · 25%ACRE

$3.05

Scenario price

Events Timeline

2026-05-07 (ET)

06:40:00

Company Reports Q1 Revenue of $13.46M, Beating Expectations

2026-02-10 (ET)

06:20:00

ACRE Reports Q4 Revenue of $13.22M, Beating Expectations

2025-11-07 (ET)

06:08:05

Ares Commercial announces Q3 GAAP EPS of 8 cents, surpassing consensus estimate of 4 cents.

2025-08-05 (ET)

06:15:11

Ares Commercial reports Q2 distributable EPS (51c), consensus 1c

2025-05-07 (ET)

06:21:32

Ares Commercial reports Q1 distributable EPS 13c, consensus 7c

News

ACRE FAQ — answered by Alphio AI

Ares Commercial Real Estate Corporation is a specialty finance company primarily engaged in directly originating and investing in commercial real estate loans and related investments. The Company, through its national direct origination platform, provides a broad offering of flexible and reliable financing solutions for commercial real estate owners and operators. The Company originates senior mortgage loans, as well as subordinate financings, mezzanine debt and preferred equity, with an emphasis on providing value added financing on a variety of properties located in liquid markets across the United States. Senior mortgage loans are typically secured by first liens on commercial properties, including property types, such as office, multifamily, self storage, retail, hotel, healthcare, student housing, industrial, mixed-use, residential and residential condominium. The Company is externally managed by Ares Commercial Real Estate Management LLC. It operates in the Real Estate sector (REAL ESTATE INVESTMENT TRUSTS industry).

Ares Commercial Real Estate Corp (ACRE) is not a good buy right now due to its current price of $3.55, which is significantly below analyst price targets of $5 to $6. The company has a very low RSI of 14.315, indicating it is oversold, but this is coupled with ongoing financial struggles, including a net income of only $4.4 million in Q2 2026, which is insufficient to cover its dividend of $0.15 per share. Additionally, the company has a high debt-to-equity ratio of 258.24%, indicating financial risk. The main risk is the potential for further dividend cuts due to insufficient earnings, as highlighted by the recent news summaries.

6 analysts cover ACRE: 3 rate it Buy, 2 Hold and 1 Sell. The average price target is 4.83.

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This page is for research only and is not investment advice. Models can be wrong. Past performance does not guarantee future results.

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