Key Highlights

  • Ares Commercial Real Estate (ACRE) sold a multi-building North Carolina office property to an unaffiliated buyer for $64 million in cash on Sept. 18, 2026.
  • Pro forma cash and cash equivalents rise to $79.466 million as of June 30, 2026.
  • ACRE pays $0.15 per quarter, a Yield of about 14%; the next ex-dividend date is Sept. 30.

Ares Commercial Real Estate (NYSE:ACRE) sold a multi-building North Carolina office property for $64 million in cash on Sept. 18, 2026, taking a troubled office asset off its books. Pro forma cash rises to $79.466 million from $17.558 million, a boost for a commercial Mortgage REIT yielding about 14% as office real estate remains the weakest corner of the property market.

Ares Commercial Real Estate's Dividend yield is about 14 percent. Ares Commercial Real Estate, managed by an affiliate of Ares Management, makes and holds commercial real estate loans. When borrowers default, it can end up owning the property, known as real estate owned, which it then works to sell.

This sale is a step in that cleanup. Office buildings have been the hardest-hit part of commercial real estate since remote work cut demand, and higher rates have made refinancing difficult. Turning a held-for-sale office asset into cash gives ACRE more flexibility to fund loans, pay down Debt or support the dividend. ACRE reported Q2 GAAP Net Income of $4.4 million, and JPMorgan recently cut its target to $5.

Ares Commercial Real Estate (ACRE) Balance Sheet After the Sale

Historical cash of $17.558 million rises by a $61.908 million pro forma adjustment to $79.466 million. Real estate owned held for sale drops from $53.934 million to zero. Restricted cash is $41.017 million.

Other Assets move from $17.503 million to $16.260 million after a $1.243 million adjustment. Total assets rise to $1,824.006 million from $1,817.275 million, a $6.731 million increase tied to the sale.

ACRE Loan Book and Credit Reserve

Loans held for Investment remain $1,748.835 million. The current expected credit Loss Reserve is $137.810 million, leaving net loans of $1,611.025 million. In plain terms, ACRE has set aside about 8% of its loan book for possible losses, a sign of how cautious lenders remain on commercial property.

Real estate owned held for investment, net, is $76.238 million, and secured funding agreements are $1,173.027 million, both unchanged.

Pro Forma Basis

The unaudited pro forma balance sheet is as of June 30, 2026, and the pro forma statements of operations treat the sale as if it happened on Jan. 1, 2025. Analysts rate ACRE Hold with an average target near $5.30.