The following is a summary of the Ares Commercial Real Estate Corporation (ACRE) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Ares Commercial Real Estate Corporation reported a GAAP net loss of approximately $6.1 million or $0.11 per common share for Q2 2024.

• Distributable earnings loss for the quarter was approximately $6.6 million or $0.12 per common share.

• The company declared a regular cash dividend of $0.25 per common share for the third quarter of 2024.

Business Progress:

• Newly appointed Chief Operating Officer Tae-Sik Yoon and Chief Financial Officer Jeff Gonzales reflect a strategic positioning of the management.

• The company is focused on maintaining high liquidity and lower leverage to enhance financial stability and flexibility.

• Ares is actively working on addressing underperforming loans and restructuring its balance sheet, key steps toward resuming higher profitability and reinvestment activities.

Opportunities:

• Positive market dynamics, including reduced interest rate expectations, are anticipated to enhance activity levels and help stabilize CRE values.

Risks:

• The company reported uneven and below potential levels of earnings due to significant focus on resolving high-risk loans (risk rated four and five) and maintaining liquidity.

More details: Ares Commercial Real Estate Corp IR

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