Ares Commercial Real Estate Corp (NYSE: ACRE) is a specialty finance company that originates and invests in commercial real estate loans and related debt instruments. It earns income primarily through interest on floating-rate senior mortgage loans, subordinated debt, and other commercial real estate debt investments held on its balance sheet. ACRE is externally managed by a subsidiary of Ares Management Corporation and has elected to be taxed as a real estate investment trust (REIT), requiring it to distribute at least 90% of taxable income to shareholders as dividends. The portfolio is concentrated in transitional commercial real estate lending, where borrowers are typically executing business plans on properties before seeking permanent financing. As of the fiscal year ended December 31, 2025 (10-K filed February 10, 2026), ACRE operates as a direct lender in the commercial real estate debt markets, competing with other mortgage REITs and commercial real estate finance companies.

Revenue model

Interest income on commercial real estate loans, including senior mortgage loans, mezzanine loans, and preferred equity investments. Spread-based lending model: ACRE borrows at short-term rates and lends at higher floating rates, capturing the net interest margin.

Products and services

Senior mortgage loans, subordinated and mezzanine loans, preferred equity investments, and other commercial real estate debt instruments.

Customers and end markets

Commercial real estate borrowers executing transitional or value-add business plans on properties. End markets include multifamily, office, retail, industrial, and hospitality real estate sectors.

Value-chain role

Direct lender and debt investor in commercial real estate capital stacks. Provides bridge and transitional financing between construction or acquisition and permanent debt placement.

Geographic exposure

United States commercial real estate markets. Specific geographic concentration not detailed in the available filing excerpts.

Source: SEC 10-K, filed 2026-02-10

Industry: Real Estate Investment Trusts Peers: Annaly Capital Management Inc ARMOUR Residential REIT Inc Broadmark Realty Capital Inc. Dynex Capital Inc Ellington Financial Inc Granite Point Mortgage Trust Inc Invesco Mortgage Capital Inc Adamas Trust Inc Redwood Trust Inc TPG RE Finance Trust Inc