ARES COMMERCIAL REAL ESTATE (ACRE) Stocks
ABOUT ARES COMMERCIAL REAL ESTATE
📊 Ares Commercial Real Estate Corporation is a specialty finance company primarily focussed on originating and investing in commercial real estate (CRE) loans and related investments. The company’s target investments include subordinated debt, preferred equity, senior mortgage loans, mezzanine loans as well as commercial mortgage backed securities.
📊 Investments are generally held for investment and are secured – directly or indirectly by multifamily, office, industrial, retail, lodging, self-storage, senior-living and other commercial real estate properties or by ownership interest.
📊 The company is elected and qualified to be taxed as a real estate investment trust. Ares Commercial Real Estate Corporation has investment professionals located across the United States and Europe through its company manager, Ares Commercial Real Estate Management LLC. These professionals directly source loan opportunities with operators, owners and sponsors of CRE properties.
📊 Ares Commercial Real Estate Corporation’s portfolio totalled 31 loans held for investment as of December 31, 2016. This excludes 47 loans that were either sold or repaid since inception. Its subsidiaries include ACRC Lender LLC, ACRC Holdings LLC, ACRC Lender One LLC and ACRC Lender US LLC.
📊 The company’s history dates back to 2012 when it was founded. It is headquartered in New York, New York.
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OVERVIEW OF ARES COMMERCIAL REAL ESTATE
- Ares Commercial Real Estate is founded by a veteran team of investment professionals is 1997. The company pursues investment activities in private debt, private equity, leveraged loans, high yield bonds and other investments.
- It becomes an independent firm in 2002 raising its first dedicated private equity and private debt funds in 2003 and 2004 respectively. In 2004 Ares creates Ares Capital Corporation (ARCC), a specialty finance company for corporate lending activities.
- Today ARCC is the largest business development company by total assets and market capitalization.
- The company expands through the years and in 2012 Ares Real Estate Group forms the specialty finance company Ares Commercial Real Estate Corporation (ACRE). It is a real estate investment trust (REIT) providing one-stop solutions for the financing needs of middle-market commercial real estate.
- In 2013 Ares buys AREA Property Partners, L.P. (AREA), a real estate investment management firm. AREA has 50 investment professionals in Europe and the U.S. as well as a 20 year track record.
- In June 2014 Ares expands into asset-based lending and commercial finance by buying Keltic Financial Services LLC and Keltic Financial Partners II, LP.
- In 2015 an Ares fund buys the asset-based lending portfolio of First Capital Holdings, Inc. This transaction adds additional asset based lending capabilities to the company. In the same year Ares expands its Private Equity Group when a subsidiary buys Energy Investors Funds (EIF) – a leading U.S. asset manager in the energy and power industry.
VALUES OF ARES COMMERCIAL REAL ESTATE
- Ares Commercial Real Estate Corporation is committed to its clients and offers them diversified investment solutions through its team of business and investment professionals. A dedicated group of senior investment professionals lead each investment platform.
- Some of these professionals are also on the investment committees which ensure a consistent approach to asset management on all platforms.
MARKET PERFORMANCE OF ARES COMMERCIAL REAL ESTATE
- Ares Commercial Real Estate Corporation trades on the New York Stock Exchange under the NYSE Stock Symbol “ACRE”.
- In February 2019 the company releases its Financial Results for the Fourth Quarter and Full-Year 2018. For the full-year 2018 the company’s GAAP net income is $38.6 million or $1.35 per diluted common share. Core Earnings are $40.8 million or $1.43 per diluted common share. For the full-year 2018, new originations are $608.6 million in commitments.
- Outstanding principal is $510.5 million funded at the origination date and an additional $33.7 million of fundings on existing commitments. The Company exited $746.8 million of loans held for investment as measured by outstanding principal for the full-year 2018.
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LATEST NEWS ARES COMMERCIAL REAL ESTATE
Before buying any stock or share one has to consider a few factors.
STEP 1: PROPER RESEARCH IS ESSENTIAL
Upon deciding you want to buy ARES COMMERCIAL REAL ESTATE Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.
Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.
STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN ARES COMMERCIAL REAL ESTATE STOCKS / SHARES
It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a $5 stock, multiply 100 by $5 to get $500.
STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE
Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.
STEP 4: OPEN A BROKERAGE ACCOUNT
A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.
STEP 5: COMMIT AND PURCHASE ARES COMMERCIAL REAL ESTATE STOCKS / SHARES
Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out. Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of ARES COMMERCIAL REAL ESTATE stocks / shares.
5 Questions to ask yourself before purchasing any stocks or shares.
- Is it the best time to buy this stock / share?
- Should I buy ARES COMMERCIAL REAL ESTATE stocks / shares in the current economic climate?
- Can I afford to buy this stock / share?
- What is the forecast of the stock / share growth?
- What is the current price per earning ration on the stock / share?
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