Revenue volatility remains a primary concern, with quarterly figures fluctuating from a negative $26.0 million in 2024Q1 to $27.5 million in 2026Q1, while NOI margins have compressed to 76.5% from historical peaks of 100%.
| 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 |
|---|
| Revenue | 79.69M | 85.35M | 87.8M | 1.1M | 109.05M | 102.07M | 78.69M | 77.26M | 55.28M | 46.35M | 45.11M | 84.31M | 63.78M | 33.77M | 6.62M |
| Revenue Growth % | 209.42% | -2.79% | 7874.75% | -98.99% | 6.84% | 29.71% | 1.85% | 39.75% | 19.28% | 2.75% | -46.5% | 32.2% | 88.83% | 409.97% | - |
| Property Operating Expenses | 23.89M | 36.4M | 0 | 0 | 0 | 18.56M | 0 | 0 | 7.42M | 6.57M | 6.12M | 20.45M | 18.65M | 5.46M | 0 |
| Net Operating Income (NOI) | 74.79M | 48.95M | 87.8M | 1.1M | 109.05M | 83.51M | 78.69M | 77.26M | 47.86M | 39.78M | 38.98M | 63.87M | 45.13M | 28.32M | 6.62M |
| NOI Margin % | 93.85% | 57.36% | 100% | 100% | 100% | 81.82% | 100% | 100% | 86.58% | 85.83% | 86.43% | 75.75% | 70.76% | 83.85% | 100% |
| Operating Expenses | 44.94M | -12.83M | 24.97M | 26M | 109.05M | -40.89M | 78.69M | 77.26M | 6.88M | 6.73M | 6.24M | 31.12M | 31.9M | 13.02M | 2.9M |
| G&A Expenses | 10.04M | 9.8M | 24.97M | 26M | 10.17M | 7.76M | 7.38M | 7.21M | 6.88M | 6.73M | 6.24M | 31.12M | 31.9M | 13.02M | 2.9M |
| EBITDA | 18.08M | 70.19M | 62.84M | -24.89M | 0 | 100.4M | 0 | 0 | 181.29M | 96.59M | 81.73M | 55.29M | 33.67M | 26.29M | 2.65M |
| EBITDA Margin % | 22.68% | 82.24% | 71.57% | -2261.04% | 0% | 98.37% | 0% | 0% | 327.93% | 208.41% | 181.2% | 65.58% | 52.79% | 77.84% | 40.09% |
| Depreciation & Amortization | 7.21M | 8.4M | 0 | 0 | 0 | 39.22M | 892K | 667K | 79.24M | 66.16M | 51.28M | 219K | 160K | 38K | -860K |
| D&A / Revenue % | 9.05% | 9.84% | 0% | 0% | 0% | 38.43% | 1.13% | 0.86% | 143.34% | 142.75% | 113.69% | 0.26% | 0.25% | 0.11% | -12.99% |
| Operating Income | 10.86M | 61.78M | 62.84M | -24.89M | 0 | 61.18M | 0 | 0 | 102.04M | 30.43M | 30.45M | 55.07M | 33.51M | 26.25M | 3.52M |
| Operating Margin % | 13.63% | 72.39% | 71.57% | -2261.04% | 0% | 59.94% | 0% | 0% | 184.59% | 65.66% | 67.51% | 65.32% | 52.54% | 77.72% | 53.07% |
| Interest Expense | 4M | 65.16M | 105.98M | 117.2M | 65.99M | 50.08M | 51.95M | 62.58M | 63M | 51.19M | 36.86M | 36.34M | 33.64M | 15.33M | 2.65M |
| Interest Coverage | - | 0.95x | 0.59x | -0.21x | - | 2.29x | -0.02x | -0.01x | 0.62x | 0.61x | 0.83x | 1.00x | 0.72x | 0.89x | 0.32x |
| Non-Operating Income | 0 | 0 | 62.84M | -24.89M | 0 | -34.93M | 892K | 667K | -446K | -946K | 0 | 0 | 9.14M | 12.67M | 0 |
| Pretax Income | -19.82M | -617K | 35.01M | 38.91M | 30.26M | 61.18M | 22.19M | 37.51M | 39.04M | 30.61M | 30.68M | 45.25M | 23.57M | 13.94M | 860K |
| Pretax Margin % | -24.87% | -0.72% | 39.87% | 3533.7% | 27.75% | 59.94% | 28.2% | 48.55% | 70.62% | 66.04% | 68.02% | 53.67% | 36.96% | 41.28% | 12.99% |
| Income Tax | 34K | 285K | 18K | 39K | 472K | 722K | 352K | 515K | 446K | 178K | 230K | 1.93M | -1.04M | 176K | 4.38M |
| Effective Tax Rate % | -0.17% | -46.19% | 0.05% | 0.1% | 1.56% | 1.18% | 1.59% | 1.37% | 1.14% | 0.58% | 0.75% | 4.26% | -4.42% | 1.26% | 508.72% |
| Net Income | -19.85M | -902K | -34.99M | -38.87M | 29.79M | 60.46M | 21.84M | 36.99M | 38.6M | 30.41M | 40.34M | 34.28M | 24.4M | 13.77M | 860K |
| Net Margin % | -24.91% | -1.06% | -39.85% | -3530.15% | 27.31% | 59.23% | 27.76% | 47.88% | 69.82% | 65.61% | 89.42% | 40.66% | 38.25% | 40.76% | 12.99% |
| Net Income Growth % | -48.99% | 97.42% | 9.97% | -230.49% | -50.74% | 176.83% | -40.96% | -4.16% | 26.93% | -24.62% | 17.65% | 40.54% | 77.22% | 1500.7% | - |
| Funds From Operations (FFO) | -12.64M | 7.5M | -29.59M | -38.87M | 29.79M | 99.68M | 22.73M | 37.66M | 117.84M | 96.57M | 91.62M | 34.5M | 24.56M | 13.8M | 0 |
| FFO Margin % | -15.86% | 8.79% | -33.7% | -3530.15% | 27.31% | 97.66% | 28.89% | 48.74% | 213.16% | 208.36% | 203.11% | 40.92% | 38.5% | 40.87% | 0% |
| FFO Growth % | 74.92% | 125.35% | - | - | - | 338.51% | -39.64% | -68.04% | 22.02% | 5.41% | 165.53% | 40.51% | 77.89% | - | - |
| FFO per Share | -0.23 | 0.14 | -0.54 | -0.72 | 0.57 | 2.34 | 0.68 | 1.31 | 4.11 | 3.38 | 3.21 | 1.21 | 0.86 | 0.73 | 0.00 |
| FFO Payout Ratio % | -198.5% | 520.15% | -201.58% | -186.91% | 241.08% | 58.61% | 188.13% | 99.55% | 27.23% | 31.62% | 32.09% | 82.88% | 116.37% | 134.56% | - |
| EPS (Diluted) | -0.36 | -0.02 | -0.64 | -0.72 | 0.57 | 1.42 | 0.66 | 1.28 | 1.35 | 1.07 | 1.41 | 1.20 | 0.85 | 0.72 | 0.03 |
| EPS Growth % | -42.64% | 97.44% | 11.11% | -226.32% | -59.86% | 115.15% | -48.44% | -5.19% | 26.17% | -24.11% | 17.5% | 41.18% | 18.06% | 2300% | - |
| EPS (Basic) | - | -0.02 | -0.64 | -0.72 | 0.58 | 1.43 | 0.66 | 1.29 | 1.35 | 1.07 | 1.42 | 1.20 | 0.86 | 0.72 | 0.03 |
| Diluted Shares Outstanding | 55.32M | 54.89M | 54.45M | 54.28M | 52.13M | 42.68M | 33.2M | 28.85M | 28.66M | 28.55M | 28.52M | 28.6M | 28.59M | 19.04M | 6.57M |
CRE credit loss exposure
As reported in recent financial statements, ACRE's FFO per share has exhibited extreme volatility, swinging from a positive $0.21 in 2025Q1 to a negative $0.16 by 2026Q1, suggesting that the company's core earnings power remains highly susceptible to credit-related adjustments and non-cash impairment charges.
The erratic FFO trajectory indicates that the company's underlying profitability is currently compromised by the need to absorb credit losses rather than generating sustainable interest income. Investors should monitor whether the recurring negative FFO figures necessitate a permanent reduction in dividend distributions to preserve capital.
Based on the provided income statement data, ACRE's NOI margin has fluctuated significantly, dropping from a peak of 100% in several quarters to 53.8% in 2025Q3, reflecting the difficulty of maintaining property-level profitability amidst a challenging interest rate environment and rising borrower defaults.
The compression in NOI margins suggests that the cost of funding the loan portfolio is increasingly encroaching on the interest income generated from underlying assets. This trend implies that the company's spread-based business model may be facing structural headwinds that limit its ability to cover corporate overhead.
According to the company's historical income data, the consistent reporting of negative net income, including a $9.6M loss in 2026Q1, suggests that CECL reserves and potential loan impairments are currently outpacing the interest revenue generated by the senior mortgage loan portfolio.
The reliance on non-cash accounting adjustments to reflect credit risk makes it difficult to ascertain the true cash-generating capacity of the portfolio. Analysts should be wary that these provisions may be a leading indicator of future principal losses rather than merely conservative accounting estimates.
Financial filings reveal that ACRE's revenue growth has been highly inconsistent, with quarterly figures swinging from a negative $26.0M in 2024Q1 to a positive $27.5M in 2026Q1, highlighting the inherent instability of a business model dependent on transaction velocity and interest accruals.
The extreme variance in revenue suggests that the company is struggling to maintain a stable base of interest-earning assets in the current CRE market. This lack of predictability in top-line performance may indicate that the portfolio is undergoing significant turnover or that non-accrual loans are distorting reported income.
Quick answers to the most common questions about buying ACRE stock.
For fiscal year 2025, Ares Commercial Real Estate Corporation (ACRE) reported total revenue of $85.3M. This represents a 1188.7% increase compared to $6.6M in 2012.
Ares Commercial Real Estate Corporation (ACRE) reported a net loss of $0.9M for the fiscal year ending 2025.
Ares Commercial Real Estate Corporation (ACRE) reported an operating income of $61.8M, resulting in an operating profit margin of 72.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Ares Commercial Real Estate Corporation (ACRE) generated $49.0M in gross profit for the year, representing a gross profit margin of 57.4%. This demonstrates the company's core pricing power and production efficiency.