Ares Commercial Real Estate (ACRE) Tops Q4 EPS by 6c

February 18, 2021 6:43 AM EST
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Price: $14.42 -0.48%

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Ares Commercial Real Estate (NYSE: ACRE) reported Q4 EPS of $0.41, $0.06 better than the analyst estimate of $0.35.

“We ended the year in a position of strength with our highest quarterly Distributable Earnings in 2020, an attractive balance sheet, consistent interest collections and no credit related losses,” said Bryan Donohoe, Chief Executive Officer of ACRE. “Based on our strong outlook for 2021 Distributable Earnings, we declared our regular first quarter dividend of $0.33 per share as well as a supplemental quarterly dividend of $0.02 per share. This supplemental quarterly dividend reflects a portion of the earnings benefit that we expect to generate from LIBOR floors on our loans and the related interest rate protection we put in place on our liabilities. We expect this earnings benefit and the supplemental dividends to remain in place throughout 2021 and we plan to retain excess earnings to make new investments. As we have for the past four years, we believe that our Distributable Earnings will meet or exceed our dividends, including the supplemental dividends, for 2021.”

“Our financing structure has been a source of strength throughout 2020 and we recently took additional steps to further reduce our funding costs,” said Tae-Sik Yoon, Chief Financial Officer of ACRE. “In January, we closed a $667 million CRE CLO that reduced our weighted average funding costs, increased our share of non-recourse financing to 67% of total aggregate amounts outstanding and enabled us to invest in new loans to grow our balance sheet.”

For earnings history and earnings-related data on Ares Commercial Real Estate (ACRE) click here.

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