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Ares Commercial Real Estate Corporation (ACRE-0.40%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a net loss attributable to common stockholders of $5,880,000, compared to a net income of $9,184,000 in the same quarter the previous year. This decline is attributed to realized losses on loans and an increase in the provision for current expected credit losses.
Interest income for the quarter was $39,345,000, down from $52,819,000 in the previous year. The decrease in interest income is due to a reduction in weighted average earning assets.
Interest expense was $27,401,000, a slight decrease from $29,745,000 in the prior year, reflecting lower weighted average borrowings.
The company reported a net interest margin of $11,944,000, compared to $23,074,000 in the previous year, with the decline attributed to an increase in loans on non-accrual status.
Revenue from real estate owned was $4,709,000, up from $809,000, due to the acquisition of new properties through foreclosure.
Total expenses for the quarter were $9,309,000, compared to $6,602,000 in the previous year. This increase is primarily due to higher expenses from real estate owned.
The provision for current expected credit losses was $7,461,000, up from $3,227,000, reflecting increased reserves for potential loan defaults.
Realized losses on loans were $5,766,000, compared to $4,886,000 in the previous year, due to discounted payoffs and foreclosures.
Cash provided by operating activities was $28,477,000, while cash used in investing and financing activities was $255,246,000 and $321,835,000, respectively.
The company had a working capital of $563,753,000 as of September 30, 2024. The filing acknowledges the impact of current macroeconomic conditions on the company's operations and credit risk.
Ares Commercial Real Estate Corporation continues to focus on managing its portfolio of commercial real estate loans and related investments, with an emphasis on maintaining liquidity and managing credit risk.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Ares Commercial Real Estate Corporation quarterly 10-Q report dated November 7, 2024. To report an error, please email earnings@qz.com.