Ares Comml Real Est 株価情報 (NYSE: ACRE)

最新ニュース Ares Comml Real Est (NYSE:ACRE) 株価情報

Ares Comml Real Est

Ares Commercial Real Estate Corp is a specialty finance company and a Real Estate Investment Trust providing commercial real estate loans and related investments. It operates in one segment namely originating and managing a diversified portfolio of CRE debt-related investments. The group recognizes its revenues through the interest income it receives from loans.

Ares Commercial Real Estate Corporation Common Stock

Ares Commercial Real Estate Corp

ACRES Commercial Realty Corp. Common Stock

ACRES Commercial Realty Corp

ACRES Commercial Realty Corp. 8.625% Fixed-to-Floating Series C Cumulative Redeemable Preferred Stock

ACRES Commercial Realty Corp. 7.875% Series D Cumulative Redeemable Preferred Stock

Acreage Holdings Inc Ordinary Shares Class D (Sub Voting)

Acreage Holdings Inc Ordinary Shares Class E (Sub Voting)

The U.S. mortgage market hit a speed bump last week as rising interest rates pushed application activity lower, breaking a <a href="https://www.benzinga.com/news/econ-s#:~:text=Econ%20%23s%20Recent%20News&amp;text=Markets%20are%20fully%20priced%20in,impact%20monetary%20policy%20for%202025.&amp;text=US%20private%20sector%20ended%202024,Manufacturing%20sector%20still%20in%20contraction.">five-week streak of growth.</a>
According to the Mortgage Bankers Association (MBA), total mortgage applications decreased 0.7% for the week ending Dec. 13, 2024, signaling persistent challenges for buyers and homeowners navigating high-rate environments.
The average interest rate for 30-year fixed-rate mortgages on conforming loan balances — up to $766,550 — rose from 6.67% to 6.75%, snapping three consecutive weeks of marginal declines.
"Mortgage rates increased last week, leading to overall mortgage application activity decreasing for the first time in five weeks,&#8221; said Joel Kan, MBA's vice president and deputy chief economist.
&#8220;Buyers remained active in the purchase market, helped by gradually improving inventory conditions and a more positive outlook on the economy and job market,&#8221; he added.
The Mortgage Refinance Index fell 3% from the previous week, but still remained 41% higher than the same period in 2023. VA refinance applications plunged 17%, offsetting gains seen in prior weeks.
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Loan Type</th>
<th>Avg. Rate (%)</th>
<th>Change (bps)</th>
<th>Points</th>
</tr>
</thead>
<tbody>
<tr>
<td>30-Year Fixed (Conforming)</td>
<td>6.75%</td>
<td>+8</td>
<td>0.66</td>
</tr>
<tr>
<td>30-Year Fixed (Jumbo)</td>
<td>6.86%</td>
<td>+7</td>
<td>0.61</td>
</tr>
<tr>
<td>30-Year Fixed (FHA)</td>
<td>6.49%</td>
<td>+2</td>
<td>0.79</td>
</tr>
<tr>
<td>15-Year Fixed</td>
<td>6.15%</td>
<td>+3</td>
<td>0.71</td>
</tr>
<tr>
<td>5/1 Adjustable-Rate Mortgage</td>
<td>6.03%</td>
<td>+22</td>
<td>0.48</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Source: MBA</figcaption></figure>
<h3 class="wp-block-heading">Housing Affordability: Renting vs. Owning</h3>
Mortgage rates remain near 7%, while home prices have risen in all 97 major U.S. cities. 
Bank of America examined the rent-versus-buy dilemma in 97 U.S. cities in a note to clients on Wednesday.
The result? In places like San Francisco, Los Angeles, and San Jose, mortgage payments now account for a staggering 60-70% of median family income, making renting the clear budget-friendly option, according to the investment bank. 
&#8220;Regionally, it is still cheaper to rent than purchase for 82 out of 97 major cities in the US,&#8221; analyst Jeseo Park wrote. 
New Orleans, Pittsburgh, and El Paso are among the cities where it&#8217;s cheaper to own than rent.
"The housing market is still stuck between high mortgage rates and low inventories," said Park. 
"We've seen some relief with the Federal Reserve starting to ease monetary policy, but rates are unlikely to fall dramatically in the near term. Buyers should expect only mild improvements next year," she added. 
With the mortgage spread hovering around 2-2.5 percentage points and Bank of America analysts forecasting a 10-year yield of 4.25% in 2025, mortgage rates are expected to stay around 6-6.5% next year. 
&#8220;Given that many homeowners locked in low rates during Covid, a mortgage rate above 6% would still be too high to promote significant activity,&#8221; Park stated. 
<h2 class="wp-block-heading">Market Reactions</h2>
The iShares Residential and Multisector Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REZ#NYSE">REZ</a>) edged up 0.1% on Wednesday, following twelve losses in the past thirteen sessions.
The VanEck Mortgage REIT Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MORT#NYSE">MORT</a>) climbed 0.5%, recovering from a 1.3% decline on Tuesday.
Stocks within the industry saw minimal movement as markets adopted a cautious, wait-and-see stance ahead of the upcoming Federal Reserve meeting.
Hannon Armstrong Sustainable Infrastructure Capital Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HASI#NYSE">HASI</a>) and New York Mortgage Trust, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NYMT#NYSE">NYMT</a>) were among the top gainers in the MORT ETF, rising 1.8% and 1.2%, respectively. Meanwhile, Ares Commercial Real Estate Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) was among the laggards, slipping 0.9%.
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Macro Economic Events

Sector ETFs

Econ #s

Economics

Federal Reserve

ETFs

ACRE

Hannon Armstrong Sustainable Infrastructure Capital

HASI

MORT

NYMT

iShares FTSE NAREIT Residential PLUS Capped Index Fund

Mortgage Applications Dip As Rates Climb: 'It Is Still Cheaper To Rent Than Purchase For 82 Out Of 97 Major Cities'

JMP Securities analyst Steven Delaney reiterates Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) from Market Perform to Market Perform.

News

Reiteration

Analyst Ratings

JMP Securities Reiterates Market Perform on Ares Comml Real Estto Market Perform

Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) reported quarterly earnings of $0.07 per share which beat the analyst consensus estimate of $0.04 by 75 percent. This is a 72 percent decrease over earnings of $0.25 per share from the same period last year. The company reported quarterly sales of $16.653 million which missed the analyst consensus estimate of $16.738 million by 0.51 percent. This is a 30.27 percent decrease over sales of $23.883 million the same period last year.

Earnings

Earnings Beats

Earnings Misses

Ares Comml Real Est Q3 2024 Adj. EPS $0.07 Beats $0.04 Estimate, Sales $16.653M Miss $16.738M Estimate

JP Morgan analyst Richard Shane maintains Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) with a Neutral and lowers the price target from $7 to $6.5.

Price Target

JP Morgan Maintains Neutral on Ares Comml Real Est, Lowers Price Target to $6.5

Wells Fargo analyst Donald Fandetti downgrades Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) from Equal-Weight to Underweight and lowers the price target from $7.5 to $7.

Downgrades

Wells Fargo Downgrades Ares Comml Real Est to Underweight, Lowers Price Target to $7

Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) reported quarterly losses of $(0.12) per share which missed the analyst consensus estimate of $0.12 by 200 percent. The company reported quarterly sales of $16.797 million which missed the analyst consensus estimate of $18.823 million by 10.77 percent. This is a 32.79 percent decrease over sales of $24.990 million the same period last year.

Ares Comml Real Est Q2 2024 Adj. EPS $(0.12) Misses $0.12 Estimate, Sales $16.797M Miss $18.823M Estimate

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SHFS

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Shares of companies within the broader financial sector are trading lower amid overall weakness following concerns about recently issued US economic data.

BTIG analyst Thomas Catherwood assumes Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) with a Neutral rating.

Initiation

BTIG Assumes Ares Comml Real Est at Neutral

Keefe, Bruyette &amp; Woods analyst Jade Rahmani maintains Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) with a Market Perform and lowers the price target from $7.5 to $7.

Keefe, Bruyette & Woods Maintains Market Perform on Ares Comml Real Est, Lowers Price Target to $7

Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) reported quarterly losses of $(0.62) per share which missed the analyst consensus estimate of $(0.23) by 169.57 percent. This is a 444.44 percent decrease over earnings of $0.18 per share from the same period last year. The company reported quarterly sales of $18.692 million which beat the analyst consensus estimate of $17.080 million by 9.44 percent. This is a 29.47 percent decrease over sales of $26.501 million the same period last year.

Ares Comml Real Est Q1 2024 Adj EPS $(0.62) Misses $(0.23) Estimate, Sales $18.692M Beat $17.080M Estimate

Keefe, Bruyette &amp; Woods analyst Jade Rahmani maintains Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) with a Market Perform and lowers the price target from $8 to $7.5.

Keefe, Bruyette & Woods Maintains Market Perform on Ares Comml Real Est, Lowers Price Target to $7.5

In the latest quarter, 5 analysts provided ratings for Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>), showcasing a mix of bullish and bearish perspectives.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $7.6, with a high estimate of $8.00 and a low estimate of $7.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 22.84%. 
<img src="https://www.benzinga.com/files/images/story/2024/1712754039_0.png" alt="price target chart" />
<h2>Breaking Down Analyst Ratings: A Detailed Examination</h2>
The standing of Ares Comml Real Est among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Richard Shane</td>
<td>JP Morgan</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$7.00</td>
<td>$8.00</td>
</tr>
<tr>
<td>Douglas Harter</td>
<td>UBS</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$8.00</td>
<td>$10.50</td>
</tr>
<tr>
<td>Eric Dray</td>
<td>B of A Securities</td>
<td>Lowers</td>
<td>Underperform</td>
<td>$7.00</td>
<td>$11.00</td>
</tr>
<tr>
<td>Jade Rahmani</td>
<td>Keefe, Bruyette &amp; Woods</td>
<td>Lowers</td>
<td>Market Perform</td>
<td>$8.00</td>
<td>$10.25</td>
</tr>
<tr>
<td>Richard Shane</td>
<td>JP Morgan</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$8.00</td>
<td>$9.50</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Ares Comml Real Est. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Ares Comml Real Est compared to the broader market.</li>
<li>Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Ares Comml Real Est's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
To gain a panoramic view of Ares Comml Real Est's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
<a href="https://www.benzinga.com/quote/ACRE/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Ares Comml Real Est analyst ratings.</a>
If you are interested in following small-cap stock news and performance <a href="https://www.benzinga.com/news/small-cap">you can start by tracking it here</a>.
<h2>Get to Know Ares Comml Real Est Better</h2>
Ares Commercial Real Estate Corp is a specialty finance company and a Real Estate Investment Trust providing commercial real estate loans and related investments. It operates in one segment namely originating and managing a diversified portfolio of CRE debt-related investments. The group recognizes its revenues through the interest income it receives from loans.
<h3>Key Indicators: Ares Comml Real Est's Financial Health</h3>
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Negative Revenue Trend: Examining Ares Comml Real Est's financials over 3 months reveals challenges. As of 31 December, 2023, the company experienced a decline of approximately -45.55% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.
Net Margin: Ares Comml Real Est's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -238.04%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Ares Comml Real Est's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -6.02%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): Ares Comml Real Est's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -1.7%, the company may face hurdles in achieving optimal financial returns.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 2.58.
<h2>What Are Analyst Ratings?</h2>
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter. 
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Analyst Ratings For Ares Comml Real Est

JP Morgan analyst Richard Shane maintains Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) with a Neutral and lowers the price target from $8 to $7.

JP Morgan Maintains Neutral on Ares Comml Real Est, Lowers Price Target to $7

Although U.S. stocks closed mixed on Wednesday, there were a few notable insider trades.
When insiders purchase shares, it indicates their confidence in the company&#39;s prospects or that they view the stock as a bargain. Either way, this signals an opportunity to go long on the stock. Insider purchases should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a buying decision.
Below is a look at a few recent notable insider purchases. For more, check out <a href="https://www.benzinga.com/sec/insider-trades/"> Benzinga&#39;s insider transactions </a> platform.
<h3>AMREP </h3>
<ul>
<li>The Trade: AMREP Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/axr#NYSE">AXR</a>) 10% owner Rainey E. Lancaster <a href="https://www.benzinga.com/quote/AXR/analyst-ratings"> acquired a total of 3,000 shares </a> an average price of $22.20. To acquire these shares, it cost around $66,600.</li>
<li>What&rsquo;s Happening: On March 8, AMREP reported earnings of 2 cents per share for its 2024 fiscal third quarter, versus year-ago earnings of $3.12 per share.</li>
<li>What AMREP Does: Amrep Corp through its subsidiaries is engaged in the Real estate business.</li>
</ul>
<h3>Ares Commercial Real Estate </h3>
<ul>
<li>The Trade: Ares Commercial Real Estate Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/acre#NYSE">ACRE</a>) CEO Bryan Patrick Donohoe acquired a total of 3,509 shares at an average price of $14.33. To acquire these shares, it cost around $50,266.</li>
<li>What&rsquo;s Happening: On March 4, B of A Securities analyst Eric Dray downgraded Ares Commercial Real Estate from Buy to Underperform and lowered the price target from $11 to $7.</li>
<li>What Ares Commercial Real Estate Does: Ares Commercial Real Estate Corp is a specialty finance company and a Real Estate Investment Trust providing commercial real estate loans and related investments.</li>
</ul>
Don&rsquo;t forget to check out our <a href="https://www.benzinga.com/premarket/"> premarket coverage here </a> 
<h3>General American Investors </h3>
<ul>
<li>The Trade: General American Investors Company, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gam#NYSE">GAM</a>) President and CEO Jeffrey W Priest <a href="https://www.benzinga.com/sec/insider-trades/"> bought a total of 4,000 shares </a> at an average price of $25.09. To acquire these shares, it cost around $100,350.</li>
<li>What&rsquo;s Happening: The company&rsquo;s stock gained around 8% year-to-date.</li>
<li>What General American Investors Does: General American Investors Company Inc is a closed-end, diversified management investment company.</li>
</ul>
&nbsp;
Check This Out: <a href="https://www.benzinga.com/news/earnings/24/04/38104597/greenbrier-likely-to-report-lower-q2-earnings-here-are-the-recent-forecast-changes-from-wall-street"> Greenbrier Likely To Report Lower Q2 Earnings; Here Are The Recent Forecast Changes From Wall Street&#39;s Most Accurate Analysts </a>

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Insiders Buying General American Investors Company And 2 Other Stocks

A yield trap is a stock that presently pays a very attractive dividend yield but is likely to have to cut its dividend soon.
Beginning investors often make the mistake of choosing stocks simply based on high dividend yields, but often these are yield traps at high risk for cutting the dividend. When dividends are cut, the investor receives the double whammy of a price drop and a smaller dividend.
Investors can reduce the risk of buying a yield trap by focusing on two key factors — the relationship between earnings and dividends being paid (the payout ratio) and the company's history of cutting, suspending or raising the dividend. If the dividend being paid is more than the earnings being generated, a dividend cut becomes likely.
Take a look at six real estate investment trusts (REITs) that are at high risk for being yield traps based on one or both of the key factors cited.
Global Net Lease Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GNL#NYSE">GNL</a>) is a New York-based net-lease diversified REIT, founded in 2011. Its portfolio of over 1,296 properties covers 66.8 million square feet across 11 countries. It has a 96% lease rate with a weighted average remaining lease term of 6.8 years. Properties in the U.S. and Canada account for 80% of Global Net Lease's portfolio, and another 20% are in Europe.
Global Net Lease pays a quarterly dividend of $0.35 and the annualized $1.40 dividend presently yields 19%. But the dividend was cut from $0.53 to $0.40 per share in April 2020 and again to $0.35 per share in October 2023. With forward funds from operations (FFO) of only $1.09, the payout ratio of 130% is too high to be sustainable. The FFO has also declined in five of the last six quarters, so the declining fundamentals are a huge red flag for investors.
Orchid Island Capital Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORC#NYSE">ORC</a>) is a Vero Beach, Florida-based specialty finance mortgage REIT that acquires, invests in and offers financing from U.S. residential mortgage-backed securities.
Orchid pays a monthly dividend of $0.12 per share and the $1.44 annualized dividend now yields 16.64%. But over the last five years, the dividend has been cut five times.
In addition, Orchid has produced negative earnings per share (EPS) in five consecutive quarters and has had four consecutive quarters of negative revenue. So Orchid is paying $1.44 in annual dividends while earning a negative $0.25 per share. Those numbers won't work for long.&nbsp;
Orchid is at extremely high risk of having to cut dividends again, and investors should not be taken in by the high dividend rate.&nbsp;&nbsp;
Ares Commercial Real Estate Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) is a New York City-based mortgage REIT that originates and invests in commercial real estate loans and other investments in the U.S. Ares was incorporated in 2011.
Ares Commercial pays a quarterly dividend of $0.25 per share, but the dividend was cut from $0.35 to $0.33 in September and cut again to $0.25 per share in February.
The $1 annualized dividend yields 13.27%, but don't count on this yield remaining that high in the future when the forward EPS is only $0.17 per share.
Dynex Capital Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DX#NYSE">DX</a>) is a Glen Allen, Virginia-based mortgage REIT that invests in mortgage-backed securities (MBS) on a leveraged basis. It has a portfolio fair value of $7.4 billion. Dynex was incorporated in 1987.
Dynex Capital pays a monthly dividend of $0.13 per share. To its credit, the dividend has been stable since June 2020. However, the dividend was cut in August 2019 and May 2020. And the annualized dividend of $1.56 per share does not cover the forward EPS of negative $0.12 per share. Dynex has had four consecutive quarters of negative EPS and revenue.
The 12.27% dividend yield is enticing, but this REIT is a potential yield trap and best avoided.&nbsp;
Generation Income Properties Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GIPR#NASDAQ">GIPR</a>) is a Tampa, Florida-based diversified REIT that owns 26 single-tenant properties, including retail, office and industrial net lease properties in densely populated areas. Seventy-two percent of its tenants are investment grade credit or equivalent. Generation Income is still a small company that was founded in 2015 and went public in 2021.
Generation Income pays a monthly dividend of $0.039, and the annual dividend of $0.468 presently yields 12.58%. The dividend was cut from $0.54 per share to $0.39 per share in October 2022.
In addition to the dividend cut, this is another REIT with four consecutive quarters of negative FFO. The annualized dividend rate of $0.47 is unsustainable with a forward FFO of negative $0.22.
Although each of the preceding REITs may pay a nice dividend a time or two going forward, the potential for further dividend cuts and or declines in share price is too obvious to ignore. Investors should consider looking for better options, even if the dividend yields are smaller.
<h2 class="wp-block-heading">Explore Opportunities Beyond REITs</h2>
While publicly traded REITs offer a convenient way to invest in real estate, we believe that some of the most compelling opportunities lie in the private market. Benzinga's <a href="https://www.benzinga.com/go/real-estate-screener">real estate offering screener</a> features a curated selection of private market real estate offerings from trusted platforms with a track record of strong returns.
Whether you&#8217;re an accredited or non-accredited investor, you can filter opportunities based on your investment criteria, including minimum investment, property type and target return. These offerings provide a unique chance to diversify your portfolio and tap into potential high-yield investments that are not available on public exchanges.
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REIT

Real Estate

GIPR

Watch Out - These 5 REITs Could Be Yield Traps

Bank of America has downgraded six players in the Commercial Real Estate (CRE) mortgage REIT sector, citing interest rate headwinds and weakening fundamentals that spell a &#8220;rocky road <a href="https://www.benzinga.com/topic/commercial-real-estate">ahead&#8221; for the industry. </a>
Eric Dray, CFA, a research analyst at Bank of America, conveyed in a note to clients on Monday that the sector might see a downward trend in book values and sustained tepid investor sentiment over the coming quarters.
&#8220;The office sector has faced headwinds from slow return-to-office in the U.S.,&#8221; according to Bank of America, as evidenced by a minimal effective rent growth of just 0.5% year-over-year in the fourth quarter of 2023, coupled with a climb in vacancy rates to 19.6%.
<h2 class="wp-block-heading">Bank of America&#8217;s Downgrade Decisions</h2>
Several mREITs have been downgraded by BofA, reflecting the anticipation of persistent sectoral pressures:
<ul>
<li>Ares Commercial Real Estate Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>): Downgraded to Underperform with a new price objective (PO) of $7, down from $11. Notable concerns include a significant office exposure and looming portfolio maturities, alongside recent credit issues and a dividend reduction.</li>
<li>Apollo Commercial Real Estate Finance (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARI#NYSE">ARI</a>): Downgraded to Underperform with a $10.50 PO. The firm faces risks from upcoming high-profile maturities and narrow dividend coverage, suggesting potential for further dividend cuts.</li>
<li>BrightSpire Capital Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRSP#NYSE">BRSP</a>): Downgraded to Underperform with a $6.50 PO, given its exposure to pressured sectors like US office and sunbelt multifamily properties, despite recent portfolio credit improvements.</li>
<li>TPG RE Finance Trust Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRTX#NYSE">TRTX</a>): Downgrade to Underperform, with a $6.50 PO, up from $6.00, following a significant portfolio reduction and unresolved credit issues, raising concerns about future dividend sustainability.</li>
<li>Starwood Property Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STWD#NYSE">STWD</a>): Downgraded from Buy to Neutral, with a $21.50 PO, down from $22.50. The diversified portfolio with limited office exposure represents a positive factor, but there is little visibility over upcoming maturities. </li>
<li>Blackstone Mortgage Trust Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BXMT#NYSE">BXMT</a>): Downgraded from Buy to Neutral, with $21 PO, down from $22. On the plus side, borrowers and sponsors have continued to invest in the properties, but elevated office exposure, high leverage and substantial near-term maturities represent major concerns. </li>
</ul>
<h3 class="wp-block-heading">Risks Ahead</h3>
&#8220;CRE fundamentals remain shaky and as rates stay higher for longer, we think pressure will mount on CRE mREIT portfolios,&#8221; Dray highlighted. 
The analyst highlighted that floating rates are the normality among CRE loans. The rising rates threaten property values and refinancing capabilities, potentially leading to an increase in defaults or forced equity injections by borrowers.
Despite the current discounts in CRE mREIT shares, BofA&#8217;s analysis suggests that the risks are skewed towards further downside. The office sector&#8217;s deteriorating fundamentals, coupled with high leverage levels used by mREITs, could amplify the impact of problem loans, potentially depressing book values further.
<h3 class="wp-block-heading">Market Reactions</h3>
<ul>
<li>Shares of Ares Commercial Real Estate Corp. fell 3.2% on Monday, extending their year-to-date decline to 28%. </li>
<li>Shares of Apollo Commercial Real Estate Finance tumbled over 4% to $10.29.</li>
<li>BrightSpire Capital Inc. saw its share price tumbling over 5%, on track for the worst session since early August 2023. </li>
<li>Both Starwood Property Trust and TPG Re Finance Trust Inc. eased 2%.</li>
<li>Shares of Blackstone Mortgage Trust Inc. fell nearly 3%. </li>
</ul>
Read Now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37457654/super-micro-computer-joins-s-p-500-index-an-ai-winner-at-premium-valuation-analyst-">Super Micro Computer Joins S&amp;P 500 Index: An &#8216;AI Winner At Premium Valuation,&#8217; Analyst Says</a>
Image: Shutterstock

Mid Cap

BRSP

BXMT

STWD

TRTX

Downgrades Flood In For Commercial Real Estate Stocks: Analysts Warn Of 'Rocky Road Ahead'

4 analysts have expressed a variety of opinions on Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) over the past quarter, offering a diverse set of opinions from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $8.38, with a high estimate of $10.50 and a low estimate of $7.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 18.24%. 
<img src="https://www.benzinga.com/files/images/story/2024/1709560889_0.png" alt="price target chart" />
<h2>Investigating Analyst Ratings: An Elaborate Study</h2>
A clear picture of Ares Comml Real Est's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Eric Dray</td>
<td>B of A Securities</td>
<td>Lowers</td>
<td>Underperform</td>
<td>$7.00</td>
<td>$11.00</td>
</tr>
<tr>
<td>Jade Rahmani</td>
<td>Keefe, Bruyette &amp; Woods</td>
<td>Lowers</td>
<td>Market Perform</td>
<td>$8.00</td>
<td>$10.25</td>
</tr>
<tr>
<td>Richard Shane</td>
<td>JP Morgan</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$8.00</td>
<td>$9.50</td>
</tr>
<tr>
<td>Douglas Harter</td>
<td>UBS</td>
<td>Announces</td>
<td>Neutral</td>
<td>$10.50</td>
<td>-</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Ares Comml Real Est. This offers insight into analysts' perspectives on the current state of the company.</li>
<li>Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Ares Comml Real Est compared to the broader market.</li>
<li>Price Targets: Delving into movements, analysts provide estimates for the future value of Ares Comml Real Est's stock. This analysis reveals shifts in analysts' expectations over time.</li>
</ul>
To gain a panoramic view of Ares Comml Real Est's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
<a href="https://www.benzinga.com/quote/ACRE/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Ares Comml Real Est analyst ratings.</a>
If you are interested in following small-cap stock news and performance <a href="https://www.benzinga.com/news/small-cap">you can start by tracking it here</a>.
<h2>Unveiling the Story Behind Ares Comml Real Est</h2>
Ares Commercial Real Estate Corp is a specialty finance company and a Real Estate Investment Trust providing commercial real estate loans and related investments. It operates in one segment namely originating and managing a diversified portfolio of CRE debt-related investments. The group recognizes its revenues through the interest income it receives from loans.
<h3>Breaking Down Ares Comml Real Est's Financial Performance</h3>
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Revenue Challenges: Ares Comml Real Est's revenue growth over 3 months faced difficulties. As of 31 December, 2023, the company experienced a decline of approximately -45.55%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.
Net Margin: Ares Comml Real Est's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -238.04%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Ares Comml Real Est's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -6.02%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): Ares Comml Real Est's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -1.7%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: Ares Comml Real Est's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 2.58.
<h2>The Significance of Analyst Ratings Explained</h2>
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Demystifying Ares Comml Real Est: Insights From 4 Analyst Reviews

B of A Securities analyst Eric Dray downgrades Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) from Buy to Underperform and lowers the price target from $11 to $7.

B of A Securities Downgrades Ares Comml Real Est to Underperform, Lowers Price Target to $7

During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a <a href="https://www.benzinga.com/yield-investments"> high dividend payout. </a>
Benzinga readers can review the latest analyst takes on&nbsp;their favorite stocks&nbsp;by visiting our&nbsp;<a href="https://www.benzinga.com/analyst-stock-ratings">Analyst Stock Ratings&nbsp;</a>page. Traders can sort through Benzinga&#39;s extensive database of analyst ratings, including <a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/09/28888638/exclusive-study-finds-benzinga-analyst-ratings-data-yields-market-beating-strategie"> by analyst accuracy </a>.
Below are the ratings of the most accurate analysts for three high-yielding stocks in the financial sector.
<h3>Two Harbors Investment Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/two#NYSE">TWO</a>)</h3>
<ul>
<li>Dividend Yield: 14.38%</li>
<li>Keefe, Bruyette &amp; Woods analyst Bose George maintained a Market Perform rating and raised the price target from $14 to $17 on Dec. 13, 2023. This analyst has an accuracy rate of 67%.</li>
<li>UBS analyst Douglas Harter initiated coverage on the stock with a Neutral rating and a price target of $14.5 on Dec. 6, 2023. This analyst has an accuracy rate of 64%.</li>
<li>Recent News: On Jan. 29, the company posted a wider-than-expected quarterly loss.</li>
</ul>
<h3>Ready Capital Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rc#NYSE">RC</a>)</h3>
<ul>
<li>Dividend Yield: 12.49%</li>
<li>Keefe, Bruyette &amp; Woods analyst Jade Rahmani maintained a Market Perform rating and cut the price target from $10.5 to $10 on Nov. 14, 2023. This analyst has an accuracy rate of 75%.</li>
<li>Wedbush analyst Jay McCanless initiated coverage on the stock with a Neutral rating and a price target of $11 on Oct. 17, 2023. This analyst has an accuracy rate of 87%.</li>
<li>Recent News: On Feb. 27, Ready Capital posted downbeat quarterly results.</li>
</ul>
<h3>Ares Commercial Real Estate Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/acre#NYSE">ACRE</a>)</h3>
<ul>
<li>Dividend Yield: 13.87%</li>
<li>Keefe, Bruyette &amp; Woods analyst Jade Rahmani maintained a Market Perform rating and cut the price target from $10.25 to $8 on Feb. 26, 2024. This analyst has an accuracy rate of 75%.</li>
<li>JP Morgan analyst Richard Shane maintained a Neutral rating and slashed the price target from $9.5 to $8 on Feb. 23, 2024. This analyst has an accuracy rate of 68%.</li>
<li>Recent News: On Feb. 22, Ares Commercial Real Estate posted a profit for the fourth quarter.</li>
</ul>
&nbsp;
Read More: <a href="https://www.benzinga.com/news/earnings/24/02/37384835/hp-best-buy-and-3-stocks-to-watch-heading-into-thursday"> HP, Best Buy And 3 Stocks To Watch Heading Into Thursday </a>

Dividends

Wall Street's Most Accurate Analysts Say Hold These 3 Financial Stocks With Over 12% Dividend Yields

Keefe, Bruyette &amp; Woods analyst Jade Rahmani maintains Ares Comml Real Est (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACRE#NYSE">ACRE</a>) with a Market Perform and lowers the price target from $10.25 to $8.

Keefe, Bruyette & Woods Maintains Market Perform on Ares Comml Real Est, Lowers Price Target to $8

KBW analyst Jade Rahmani maintained a Hold rating on Ares Commercial (ACRE – Research Report) today and set a price target of $7.00. The company's ...

Ares Commercial (ACRE) Receives a Hold from KBW

Apollo Commercial Real Estate Finance: A Buy After 29% Dividend Cut?

Ares Commercial: The 14% Yield Is Likely Not Sustainable

Stop Plunging Toilets, Get Paid Up To 14% Yields Instead

Small Group Luncheon Meeting to be held in New York on December 17 hosted by JMP Securities. Published first on TheFly – the ultimate source for re...

Ares Commercial management to meet with JMP Securities

In a report released today, Steven Delaney from JMP Securities maintained a Hold rating on Ares Commercial (ACRE – Research Report). The company's ...

JMP Securities Reaffirms Their Hold Rating on Ares Commercial (ACRE)

Ares Commercial Real Estate: High Yield Is A Red Flag (Downgrade)

Rithm Capital's Updated Sector Comparative Analysis - Part 1 (Includes Recommendation For 19 Peers As Of 12/6/2024)

Huge Yields, Brief Notes

Ares Commercial: 15% Yield In Danger

AGNC

AGNCL

AGNCM

AGNCN

AGNCO

AGNCP

ARCC

CHMI

CIMN

CIMO

CSWC

FBRT

GAIN

GPMT

MAIN

MFAN

MFAO

MFIC

MITN

MITP

MITT

NYMTI

NYMTL

NYMTM

NYMTN

NYMTZ

PMTU

RITM

TPVG

Press Releases

Ares Commercial Real Estate Corporation Announces Tax Reporting Information For Calendar Year 2023

Ares Commercial Real Estate Corporation Reports Fourth Quarter and Full Year 2023 Results

Ares Commercial Real Estate Corporation Schedules Earnings Release and Conference Call for the First Quarter Ended March 31, 2024

Ares Commercial Real Estate Corporation Reports First Quarter 2024 Results

Ares Commercial Real Estate Corporation Schedules Earnings Release and Conference Call  for the Second Quarter Ended June 30, 2024

Ares Commercial Real Estate Corporation Reports Second Quarter 2024 Results

Ares Commercial Real Estate Corporation Schedules Earnings Release and Conference Call for the Third Quarter Ended September 30, 2024

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