Ares Commercial Real Estate (NYSE: ACRE) is the small CRE lender that took the office cycle on the chin: two dividend cuts (from $0.33 to $0.25 to $0.15), a book in active shrink-and-resolve mode, and the Ares platform behind it providing the workout muscle and the eventual redeployment engine.
| Ares Commercial Real Estate (ACRE) Snapshot | |
|---|---|
| Share Price (delayed) | $4.43 +0.00% |
| Market Cap | $246M |
| Annualized Dividend | $0.60 (Quarterly) |
| Dividend Yield | 13.54% |
| Sector | Mortgage ยท Commercial Lending |
Market data updates automatically several times daily. Last price refresh: Jul 12, 2026.
Business Model and the Reset
ACRE writes middle-market floating-rate senior loans, and its office concentration made it one of the cycle’s most visible casualties: reserves built, non-accruals accumulated, and management chose shrinkage, selling loans, taking REO, paying down debt, and cutting the dividend twice to a level the smaller book can carry. Ares’ broader real estate platform supplies the special-servicing expertise doing the work.
Dividend Reality
$0.15 quarterly after two resets, sized for the shrunken earnings base and roughly covered when resolutions cooperate. The payout question is settled downward; the equity question is whether book value stabilizes above the discounted price.
The Honest Risk Section
Remaining office resolutions at or near carrying marks are the whole game, small scale amplifies each outcome, and external management fees persist through the shrink. A rebuilt, redeployed ACRE is plausible; the current grade prices the one that exists.
Frequently Asked Questions
How many times has ACRE cut its dividend?
Twice in the recent cycle: from $0.33 to $0.25, then to $0.15 quarterly, matching the payout to a deliberately shrinking, de-risking loan book.
Is ACRE’s dividend safe now?
The twice-reduced rate is roughly covered, contingent on office resolutions landing near marks; the balance sheet is being managed for survival-then-redeploy.
Analysis based on public disclosures through Q1 2026. Live market data updates automatically. Independent research, not investment advice.
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