Ares Commercial Real Estate

What Ares Commercial Real Estate does

Ares Commercial Real Estate Corporation (NYSE: ACRE) is a publicly traded commercial mortgage REIT (mREIT) that originates and manages a portfolio of middle-market commercial real estate loans. The company targets institutional borrowers — property owners and developers seeking financing for office, multifamily, industrial, retail, and other income-producing assets — and, separately, originates acquisition financing alongside Ares-affiliated real estate funds. The company's core operating activity is loan origination and active portfolio management, including resolution of troubled office-sector exposures (notably a $140M Chicago office loan and $130M Brooklyn residential condominium loan). The company also manages real estate owned (REO) assets acquired through foreclosure. Underlying technology consists of a standard CRE lending platform with no disclosed proprietary AI/ML components; product modules are unified rather than segmented.

ACRE generates revenue primarily through interest income on its loan portfolio, supplemented by loan origination fees and gains on real estate owned. Pricing is structured through a quarterly dividend ($0.15/share with ~12% indicated yield); the stock trades at roughly 0.55x Q1 2026 book value near a 1-year low. The go-to-market motion is direct institutional sales backed by multiple committed credit facilities (Wells Fargo $600M, Morgan Stanley $350M, City National Bank). The company has historically been a component of the broader Ares Management alternative asset platform and co-invests alongside Ares Real Estate funds, providing a sponsor-driven deal flow advantage. The FY2025 GAAP net loss was $0.9M with a $6.7M Distributable Earnings Loss, and Q1 2026 TTM revenue declined 18.5%, indicating financial underperformance despite a 24% sequential loan portfolio expansion to $1.6B (with a stated $2B target) and a defensive 30% reduction in office exposure.

Name

Ares Commercial Real Estate

Legal name

Ares Commercial Real Estate Corporation

Website

https://arescre.com

Company type

Public

Founded year

2011

Operating status

Operating

Headcount range

501–1,000 employees

Short description

Ares Commercial Real Estate Corporation is a publicly traded commercial mortgage REIT (NYSE: ACRE) that originates and manages middle-market commercial real estate loans to institutional property owners and developers across office, multifamily, industrial, and retail assets, while co-investing alongside Ares Real Estate funds.

Ownership category

akta.pro rank

Product category

Commercial Mortgage Lending / Mortgage REIT

NAICS

Other Investment Pools and Funds (5259)

SIC

Real Estate Investment Trusts (6798), Mortgage Bankers & Loan Correspondents (6162)

akta.pro primary industry

SME Commercial Real Estate (CRE) Lending (FSABABAG)

Keywords

• Commercial mortgage lending
• Middle-market CRE loans
• Mortgage REIT
• Real estate debt financing
• Commercial real estate loans

Headquarters

HQ city

Atlanta

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Infrastructure, Personnel, Others

Revenue model

1. Interest Income from Commercial Real Estate Loans: As a mortgage REIT, Ares Commercial Real Estate generates revenue primarily through interest income on its portfolio of commercial real estate loans. The company originates and holds loans secured by income-producing properties including office, multifamily, industrial, and other commercial real estate assets.
2. Loan Origination Fees and Other Income: The company earns fees from loan originations, modifications, and other lending activities. Additional revenue comes from gain on real estate owned and other financing activities.

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Marketing channels3 records

Core offering

Ares Commercial Real Estate Corporation is a publicly traded commercial mortgage REIT that originates, holds, and services senior and mezzanine loans secured by income-producing commercial real estate properties, including office, multifamily, industrial, and other asset classes. Loans are funded with a combination of equity, unsecured corporate borrowings, and revolving/repurchase credit facilities, and revenue is generated primarily through net interest income on the loan portfolio plus ancillary origination and servicing-related fees. The company also manages real estate owned (REO) assets acquired through foreclosure or deed-in-lieu transactions.

Product overview

Ares Commercial Real Estate Corporation (ACRE) is a publicly traded mortgage real estate investment trust (mREIT) listed on the NYSE. The company operates as a single unified offering focused on commercial real estate lending, providing loan origination and portfolio management services. The core product consists of originating and managing a diversified portfolio of commercial real estate loans across property types including office, multifamily, industrial, and other commercial assets. The company also manages real estate owned (REO) properties acquired through foreclosure. As a single-segment financial services company, there are no distinct product modules, sub-brands, or acquired brands—the company operates as an integrated mortgage REIT platform.

Differentiator

Problem solved

Functional benefit

Products and services

• Commercial Real Estate Loan Origination Origination of commercial real estate loans secured by income-producing properties including office, multifamily, industrial, retail, and other commercial asset classes, structured for middle-market property owners, developers, and sponsors. Loans are funded on-balance-sheet and held for interest income.
• Loan Portfolio Management and Servicing Management and servicing of a diversified portfolio of commercial real estate loans, including monitoring borrower performance, collecting payments, covenant tracking, and managing troubled and workout assets across the loan book.
• Real Estate Owned (REO) Management Management of real estate properties acquired through foreclosure or deed-in-lieu, including operating the assets to generate cash flow and optimizing their disposition to recover loan principal and interest.

Quantifiable outcome

• Office portfolio reduced by 30% to $447 million since year-end 2024
• +3 more outcomes

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Two partnerships are on record, tiered minor and core.

• Scion GroupminorStrategic or Co-development Partner · 4 June 2026Joint venture between Scion Group and an Ares Real Estate fund acquired a 12-property student housing portfolio for approximately $910 million from Marcus & Millichap. The partnership involves Ares Commercial Real Estate's affiliated real estate funds.
• Ares-Affiliated VehiclescoreStrategic or Co-development PartnerCompany co-invests alongside Ares-affiliated vehicles and participated in increased investment activity in the second half of 2025. This leverage of the broader Ares platform provides deal flow and capital partnership opportunities.

Scale indicators12 records

Recent moves6 records

Expansion highlights4 records

Direct peers

• Blackstone Mortgage Trust: Largest publicly traded commercial mortgage REIT (NYSE: BX), managed by Blackstone Real Estate; competes in the senior CRE loan space that overlaps directly with ACRE's middle-market focus.
• Apollo Commercial Real Estate Finance: Publicly traded mortgage REIT (NYSE: ARI) managed by Apollo that originates and holds middle-market commercial real estate loans, making it one of the closest direct comparables to ACRE in both asset focus and scale.
• Granite Point Mortgage Trust: Commercial mortgage REIT (NYSE: GPMT) that originates senior loans on middle-market commercial real estate, the closest size and strategy peer to ACRE in the publicly traded space.
• KKR Real Estate Finance Trust: Externally managed mortgage REIT (NYSE: KREF) affiliated with KKR that originates senior loans on commercial real estate, directly comparable to ACRE's middle-market CRE lending strategy.
• Ladder Capital: Publicly traded commercial real estate finance company (NYSE: LADR) that originates and holds middle-market CRE loans, closely aligned with ACRE's loan size, asset types, and target borrowers.
• Starwood Property Trust: Diversified mortgage REIT (NYSE: STWD) managed by Starwood Capital that originates commercial real estate loans, directly competing with ACRE for institutional middle-market borrowers.
• Sachem Capital: Publicly traded mortgage REIT (NYSE: SACH) focused on originating smaller-balance commercial real estate loans, comparable to ACRE's middle-market origination focus though typically at smaller deal sizes.
• TPG RE Finance Trust: Externally managed mortgage REIT (NYSE: TRTX) affiliated with TPG that originates and manages commercial real estate loans, comparable to ACRE in loan size, property types, and sponsor backing.

Broad incumbents

• AG Mortgage Investment Trust: Residential and commercial mortgage REIT (NYSE: MITT) that invests across CRE and residential credit, overlapping with ACRE in the commercial mortgage space but with a broader mandate.
• Ares Management: The parent affiliated alternative asset manager that provides ACRE with deal flow, co-investment, and capital partnerships; broader platform that competes in adjacent lending and real estate fund strategies.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat3 records

Key risks5 records

Key highlights5 records

Customer concentration

• LinkedInlinkedin.com/company/ares-commercial-properties

Revenue estimate

Valuation estimate

Number of profiles

Profiles14 records

Funding overview

Funding rounds1 record

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Ares Commercial Real Estate