Ares Commercial Real Estate Co. (NYSE:ACRE) Increases Dividend to $0.35 Per Share

Ares Commercial Real Estate Co. (NYSE:ACREGet Rating) declared a quarterly dividend on Tuesday, May 3rd, Zacks reports. Investors of record on Thursday, June 30th will be given a dividend of 0.35 per share by the real estate investment trust on Friday, July 15th. This represents a $1.40 dividend on an annualized basis and a yield of 9.13%. The ex-dividend date is Wednesday, June 29th. This is an increase from Ares Commercial Real Estate’s previous quarterly dividend of $0.33.

Ares Commercial Real Estate has raised its dividend by an average of 6.5% annually over the last three years. Ares Commercial Real Estate has a payout ratio of 88.6% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings fall. Analysts expect Ares Commercial Real Estate to earn $1.56 per share next year, which means the company should continue to be able to cover its $1.32 annual dividend with an expected future payout ratio of 84.6%.

NYSE:ACRE opened at $15.34 on Wednesday. Ares Commercial Real Estate has a 52 week low of $13.48 and a 52 week high of $16.98. The firm has a market cap of $725.12 million, a price-to-earnings ratio of 10.58 and a beta of 1.20. The firm’s 50-day simple moving average is $15.30 and its 200 day simple moving average is $15.07. The company has a debt-to-equity ratio of 2.76, a quick ratio of 1.01 and a current ratio of 1.01.

Ares Commercial Real Estate (NYSE:ACREGet Rating) last released its earnings results on Tuesday, May 3rd. The real estate investment trust reported $0.34 EPS for the quarter, missing the consensus estimate of $0.36 by ($0.02). Ares Commercial Real Estate had a net margin of 59.23% and a return on equity of 9.83%. During the same quarter in the prior year, the business earned $0.38 earnings per share. Sell-side analysts anticipate that Ares Commercial Real Estate will post 1.39 EPS for the current year.

In related news, Director William Stephen Benjamin acquired 18,000 shares of the stock in a transaction dated Wednesday, February 23rd. The stock was bought at an average price of $14.05 per share, for a total transaction of $252,900.00. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. 1.95% of the stock is currently owned by insiders.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. grew its position in Ares Commercial Real Estate by 0.4% during the fourth quarter. BlackRock Inc. now owns 4,475,293 shares of the real estate investment trust’s stock valued at $65,071,000 after acquiring an additional 19,211 shares during the last quarter. State Street Corp increased its holdings in Ares Commercial Real Estate by 7.8% in the 4th quarter. State Street Corp now owns 917,104 shares of the real estate investment trust’s stock worth $13,654,000 after buying an additional 66,137 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of Ares Commercial Real Estate by 4.1% during the 4th quarter. Geode Capital Management LLC now owns 785,620 shares of the real estate investment trust’s stock valued at $11,422,000 after buying an additional 30,732 shares in the last quarter. Morgan Stanley lifted its holdings in Ares Commercial Real Estate by 185.6% in the 2nd quarter. Morgan Stanley now owns 415,058 shares of the real estate investment trust’s stock worth $6,098,000 after purchasing an additional 269,735 shares in the last quarter. Finally, Bank of New York Mellon Corp increased its stake in Ares Commercial Real Estate by 12.4% in the 3rd quarter. Bank of New York Mellon Corp now owns 177,349 shares of the real estate investment trust’s stock worth $2,675,000 after acquiring an additional 19,518 shares during the last quarter. 46.66% of the stock is currently owned by institutional investors and hedge funds.

Several equities analysts have commented on ACRE shares. Zacks Investment Research lowered shares of Ares Commercial Real Estate from a “buy” rating to a “hold” rating in a report on Wednesday, April 27th. JPMorgan Chase & Co. raised their target price on shares of Ares Commercial Real Estate from $14.50 to $16.00 and gave the company a “neutral” rating in a report on Monday, April 25th. StockNews.com started coverage on shares of Ares Commercial Real Estate in a report on Thursday, March 31st. They issued a “hold” rating on the stock. Finally, JMP Securities raised their target price on shares of Ares Commercial Real Estate from $16.00 to $16.50 and gave the company a “market outperform” rating in a report on Thursday, March 31st. Three investment analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Buy” and an average price target of $16.70.

Ares Commercial Real Estate Company Profile (Get Rating)

Ares Commercial Real Estate Corporation, a specialty finance company, originates and invests in commercial real estate (CRE) loans and related investments in the United States. The company provides a range of financing solutions for the owners, operators, and sponsors of CRE properties. It originates senior mortgage loans, subordinate debt products, mezzanine loans, real estate preferred equity investments, and other CRE investments, including commercial mortgage backed securities.

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Dividend History for Ares Commercial Real Estate (NYSE:ACRE)

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