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Ares Commercial Real Estate Still On The Bench As Near-Te...
2026-04-28 · via All Articles on Seeking Alpha

Summary

  • Ares Commercial Real Estate gets its prior hold rating reaffirmed again.
  • Key upside to drive growth could come from its new loans originated, however it is also on a portfolio optimization strategy to reduce office exposure.
  • Loan loss reserve trends seem to be on an improvement track.
  • The dividend growth and safety picture is not compelling right now.
  • This sector/niche can be highly impacted by interest rate risk and Fed decisions, so those are trends/patterns to watch.
Concept image of Business Acronym REIT as Real Estate Investment Trust. Many houses and construction cranes. 3d rendering

Kwarkot/iStock via Getty Images

The Thesis: Reaffirm Prior Hold Rating

While many notable banks had earnings results lately that made headlines, there are still quite a few companies yet to report and so today I'm focusing on a mortgage REIT, Ares

1.74K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of KREF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Author actively invests in various REITs and holds small positions in KREF and BXMT, both of whom were mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.