The company's capital structure remains strained by elevated leverage, maintaining a debt-to-equity ratio of 2.58x as of 2026Q1 while total assets have contracted by approximately 21.7% since 2023Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Total Assets | 1.84B | 1.62B | 1.75B | 2.28B | 2.52B | 2.63B | 1.93B | 1.78B | 1.6B | 1.77B | 1.37B | 1.38B | 1.87B | 1.18B | 387.86M |
| Asset Growth % | -45.53% | -7.6% | -23.19% | -9.64% | -4.14% | 36.4% | 8.15% | 11.28% | -9.43% | 28.86% | -0.38% | -26.16% | 58.69% | 203.44% | - |
| Real Estate & Other Assets | -76.85M | 1.29B | 8.63M | -28.06M | -27.94M | 0 | 8.21M | 15.69M | 0 | 0 | 0 | -61.8M | -58.89M | -59.64M | 0 |
| PP&E (Net) | 0 | 113.28M | 115.32M | 0 | 0 | 0 | 37.28M | 37.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investment Securities | 1000K | 1000K | 1000K | 1000K | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Assets | 105.1M | 67.23M | 1.59B | 0 | 0 | 0 | 1.88B | 1.73B | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash & Equivalents | 86.16M | 29.29M | 63.8M | 110.46M | 141.28M | 50.62M | 74.78M | 5.26M | 11.09M | 28.34M | 47.27M | 8.99M | 16.55M | 20.1M | 23.39M |
| Receivables | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 945K | 203K | 1000K | 1000K | 1000K | 1000K |
| Other Current Assets | 0 | 20.17M | 10.6M | -174.21M | -301.69M | -181.8M | 17.61M | 42.79M | -52.42M | -945K | -203K | -38.3M | -21.79M | -2.55M | -1.75M |
| Intangible Assets | 0 | 16.88M | 23.71M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 61.8M | 58.89M | 59.64M | 0 |
| Total Liabilities | 1.34B | 1.11B | 1.21B | 1.65B | 1.78B | 1.95B | 1.46B | 1.36B | 1.18B | 1.35B | 944.03M | 922.49M | 1.39B | 770.7M | 222.42M |
| Total Debt | 1.27B | 1.05B | 1.17B | 1.62B | 1.74B | 1.9B | 1.43B | 1.34B | 379.08M | 378.81M | 149.88M | 629.41M | 1.12B | 727.26M | 211.54M |
| Net Debt | 1.19B | 1.02B | 1.11B | 1.51B | 1.6B | 1.85B | 1.36B | 1.33B | 367.99M | 350.46M | 102.61M | 620.42M | 1.1B | 707.16M | 188.16M |
| Long-Term Debt | 1.05B | 189.28M | 812.63M | 1.62B | 1.03B | 1.08B | 1.15B | 624.49M | 415.36M | 1.34B | 930.59M | 324.11M | 590.64M | 560.33M | 99.45M |
| Short-Term Borrowings | 224.63M | 858.18M | 359.74M | 0 | 705.23M | 819.4M | 277.51M | 711.13M | 36.28M | 744.51M | 0 | 280.5M | 524.36M | 264.42M | 112.1M |
| Capital Lease Obligations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Liabilities | 224.63M | 870.94M | 378.76M | 24.62M | 0 | 0 | 292.17M | 724.16M | 541K | 744.92M | 578.54M | 305.61M | 524.86M | 264.8M | 113.88M |
| Accounts Payable | 0 | 257K | 0 | 2.26M | 1.91M | 570K | 0 | 0 | 541K | 414K | 0 | 299K | 498K | 384K | 1.79M |
| Deferred Revenue | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -48.9M | -10.76M | 944.03M | -61.41M | -10.12M | -10.01M | -5.43M |
| Other Liabilities | 72.25M | 48.36M | 19.68M | 12.32M | -1.03B | -1.08B | 10.77M | 9.15M | -415.36M | -1.34B | -930.59M | -324.11M | -590.64M | -560.33M | -99.45M |
| Total Equity | 492.42M | 509.57M | 540.13M | 625.85M | 747.54M | 678.63M | 473.01M | 426.34M | 1.57B | 1.73B | 429.67M | 456.49M | 480.89M | 406.22M | 165.44M |
| Equity Growth % | -32.48% | -5.66% | -13.7% | -16.28% | 10.15% | 43.47% | 10.95% | -72.87% | -9.03% | 301.98% | -5.87% | -5.07% | 18.38% | 145.54% | - |
| Shareholders Equity | 492.42M | 509.57M | 540.13M | 625.85M | 747.54M | 678.63M | 473.01M | 426.34M | 425.59M | 419.17M | 419.03M | 409.47M | 402.95M | 406.22M | 165.44M |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.15B | 1.31B | 10.64M | 47.02M | 77.93M | 0 | 0 |
| Common Stock | 532K | 532K | 532K | 532K | 537K | 465K | 329K | 283K | 283K | 283K | 283K | 284K | 284K | 284K | 92K |
| Additional Paid-in Capital | 821.72M | 820.83M | 816.92M | 812.18M | 812.79M | 703.95M | 497.8M | 423.62M | 421.74M | 420.64M | 420.06M | 421.18M | 420.34M | 419.4M | 169.2M |
| Retained Earnings | -329.84M | -311.79M | -277.36M | -187.02M | -73.33M | -28.63M | -25.12M | 2.44M | 3.56M | -1.75M | -1.31M | -11.99M | -17.67M | -13.47M | -3.85M |
| Preferred Stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.56M | 0 | 0 | 0 | 0 | 0 | 0 |
| Return on Assets (ROA) | -1.26% | -0.05% | -1.74% | -1.62% | 1.16% | 2.65% | 1.18% | 2.18% | 2.29% | 1.93% | 2.93% | 2.11% | 1.6% | 1.76% | 0.22% |
| Return on Equity (ROE) | -3.88% | -0.17% | -6% | -5.66% | 4.18% | 10.5% | 4.86% | 3.7% | 2.34% | 2.82% | 9.1% | 7.32% | 5.5% | 4.82% | 0.52% |
| Debt / Assets | 69.25% | 64.73% | 66.95% | 70.93% | 68.83% | 72.29% | 74.17% | 74.86% | 23.64% | 21.4% | 10.91% | 45.64% | 60% | 61.79% | 54.54% |
| Debt / Equity | 2.58x | 2.06x | 2.17x | 2.58x | 2.32x | 2.80x | 3.03x | 3.13x | 0.24x | 0.22x | 0.35x | 1.38x | 2.33x | 1.79x | 1.28x |
| Net Debt / EBITDA | 65.58x | 14.51x | 17.64x | - | - | 18.44x | - | - | 2.03x | 3.63x | 1.26x | 11.22x | 32.79x | 26.90x | 70.87x |
| Book Value per Share | 8.90 | 9.28 | 9.92 | 11.53 | 14.34 | 15.90 | 14.25 | 14.78 | 54.83 | 60.50 | 15.06 | 15.96 | 16.82 | 21.34 | 25.19 |
CRE credit loss exposure
As reported in quarterly financial filings, ACRE's total assets have declined from $2.3 billion in 2023Q4 to $1.8 billion by 2026Q1, signaling a strategic reduction in the loan portfolio size as the company navigates a challenging commercial real estate credit environment.
The consistent reduction in total assets suggests that management is prioritizing capital preservation over new originations in the current high-rate, high-distress environment. This contraction appears to be a defensive posture intended to mitigate further exposure to underperforming office and multifamily assets.
Based on the company's reported figures, the debt-to-equity ratio remains elevated at 2.58x as of 2026Q1, which indicates that the firm's capital structure is highly sensitive to further impairments in the underlying collateral value of its senior mortgage loan portfolio.
While the debt-to-equity ratio has fluctuated, the persistent levels above 2.0x suggest limited room for error in asset valuation. Investors should monitor whether this leverage profile forces the company to accept unfavorable loan modifications or asset liquidations to satisfy credit facility covenants.
According to recent balance sheet data, ACRE's cash position has experienced significant volatility, dropping to $29.3 million in 2025Q4 before recovering to $86.2 million in 2026Q1, highlighting the precarious nature of liquidity management in a period of declining interest income and rising credit provisions.
The fluctuation in cash balances suggests that the company is managing liquidity on a tight leash, likely to ensure compliance with secured credit facility requirements. This limited cash buffer may restrict the firm's ability to support distressed borrowers or fund necessary capital expenditures on REO properties.
Financial statements indicate that equity has steadily eroded from $625.8 million in 2023Q4 to $492.4 million in 2026Q1, a trend that reflects the cumulative impact of non-cash credit loss provisions and negative net income on the company's tangible book value.
The consistent decline in equity base suggests that the company is struggling to offset credit losses with current interest income. This erosion warrants further investigation into whether current CECL reserves are sufficient to cover potential future impairments in the office-heavy loan portfolio.
As evidenced by the shift to a negative net margin, the reliance on management-determined CECL reserves may mask the true extent of asset impairment, as reported in the company's most recent quarterly balance sheet disclosures.
The subjectivity inherent in valuing distressed CRE loans means that the reported book value may not fully capture the current market reality of the underlying collateral. This creates a risk that future write-downs could be more severe than current accounting estimates suggest.
Quick answers to the most common questions about buying ACRE stock.
As of 2025, Ares Commercial Real Estate Corporation (ACRE) had total assets of $1.62B including $67.2M in current assets.
Ares Commercial Real Estate Corporation (ACRE) carries total debt of $1.05B. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Ares Commercial Real Estate Corporation (ACRE) has total shareholders' equity (book value) of $509.6M ($9.28 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Ares Commercial Real Estate Corporation (ACRE) reported a current ratio of 0.08x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.