Ares Commercial Real Estate | 10-Q: FY2025 Q3 Revenue: USD 14.11 M

Revenue: As of FY2025 Q3, the actual value is USD 14.11 M.

EPS: As of FY2025 Q3, the actual value is USD 0.08, beating the estimate of USD 0.0175.

EBIT: As of FY2025 Q3, the actual value is USD -4.366 M.

Segment Revenue

• Interest Income: For the three months ended September 30, 2025, interest income was $23.3 million, compared to $39.3 million for the same period in 2024. For the nine months ended September 30, 2025, interest income was $73.9 million, compared to $124.2 million in 2024.

Operational Metrics

• Net Interest Margin: For the three months ended September 30, 2025, net interest margin was $8.5 million, compared to $11.9 million for the same period in 2024. For the nine months ended September 30, 2025, net interest margin was $24.8 million, compared to $40.5 million in 2024.
• Net Income (Loss): For the three months ended September 30, 2025, net income attributable to common stockholders was $4.7 million, compared to a net loss of $5.9 million for the same period in 2024. For the nine months ended September 30, 2025, net income was $3.0 million, compared to a net loss of $24.3 million in 2024.

Cash Flow

• Net Cash Provided by Operating Activities: For the nine months ended September 30, 2025, net cash provided by operating activities was $16.7 million, compared to $28.5 million in 2024.
• Net Cash Provided by Investing Activities: For the nine months ended September 30, 2025, net cash provided by investing activities was $438.2 million, compared to $255.2 million in 2024.
• Net Cash Used in Financing Activities: For the nine months ended September 30, 2025, net cash used in financing activities was $397.3 million, compared to $321.8 million in 2024.

Unique Metrics

• Loans Held for Investment: As of September 30, 2025, the carrying amount of loans held for investment was $1.2 billion, with an outstanding principal of $1.3 billion.

Future Outlook and Strategy

• Core Business Focus: The company plans to continue focusing on directly originating and managing a diversified portfolio of CRE debt-related investments. It aims to maintain its qualification as a REIT and its exemption from registration under the 1940 Act.
• Non-Core Business: The company has a stock repurchase program in place, which was extended to be in effect until July 31, 2026, or until the approved dollar amount has been used to repurchase shares.