Add as a preferred source on GoogleAres Commercial Real Estate Reports $116 Million in Available Capital
The company is targeting about $160 million in net nonaccrual carrying value and expects redeployment to raise earnings per share and support earnings at or above its dividend.
Ares Commercial Real Estate Corporation (NYSE: ACRE) reported $116 million in available capital as it seeks to resolve nonaccruing and risk-rated 4 and 5 assets with about $160 million in net nonaccrual carrying value.
Loans on a Chicago office property and a Brooklyn residential condo made up 95% of principal outstanding in the company’s risk-rated 4 and 5 group. The Chicago exposure accounted for close to half of Ares’ CECL reserve. For the Brooklyn loan, losses are recognized as individual condo units sell.
Ares expects to put capital from resolved assets into income-producing investments. Management expects that redeployment to increase earnings per share and bring earnings to a level that meets or exceeds the company’s dividend.
Across the third quarter and the fourth quarter to date, Ares sold one of its two real estate-owned properties and received full repayment on its only loan in default.
John Kim
John Kim reports on the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.