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Ares Commercial Real Estate Corporation (ACRE-0.40%) has submitted its annual report on Form 10-K for the fiscal year ended December 31, 2024. filing
The filing includes financial statements and detailed information about the company's operations, financial condition, and risk factors. The company reported a net loss attributable to common stockholders of $34,993,000 for the year ended December 31, 2024, compared to a net loss of $38,867,000 for the previous year.
Total revenue for the year was $69,650,000, down from $92,926,000 in 2023. The decrease in revenue was primarily due to lower interest income and higher realized losses on loans.
The company reported a provision for reversal of current expected credit losses of $18,152,000 for 2024, compared to a provision of $91,825,000 in 2023. This decrease was attributed to realized losses on risk-rated loans and shorter average remaining loan terms.
Realized losses on loans increased significantly to $83,591,000 in 2024 from $10,499,000 in 2023, primarily due to discounted payoffs and foreclosures on several senior mortgage loans.
The company’s total assets as of December 31, 2024, were $1,751,206,000, a decrease from $2,279,777,000 at the end of the previous year. This decrease was largely due to a reduction in loans held for investment and the sale of real estate owned.
Ares Commercial Real Estate Corporation's liquidity position included approximately $201 million in available liquidity, comprising $139 million in cash and $62 million in availability under secured funding agreements.
The company continues to focus on managing its portfolio through proactive monitoring and risk management strategies, while navigating the challenges posed by the current macroeconomic environment and its impact on commercial real estate markets.
Ares Commercial Real Estate Corporation is externally managed by Ares Commercial Real Estate Management LLC, a subsidiary of Ares Management Corporation, under a management agreement that includes a base management fee and potential incentive fees.
The filing also details various financing agreements, including secured funding agreements and collateralized loan obligation securitizations, which are used to finance the company's investments.
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 annual 10-K report dated February 12, 2025. To report an error, please email earnings@qz.com.